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Discuss in Brief About Gold Loans

Gold Loans

Lenders who need immediate or future access to large sums of money may take out a loan guaranteed by Gold. In this case, the lender’s Gold is used as collateral. According to the Reserve Bank of India, the maximum loan amount is 75% of the value of the Gold pledged at the time of approval. Pledgeable Gold might be anywhere in the 18-22 carat range.

Eligibility Criteria

Gold loans are available to anyone as young as 18 years old. Gold loans are available to those up to the age of 70. A gold loan can be applied for by anyone, whether they are already employed or not. Anyone else, like a business owner, entrepreneur, student, unemployed, or retiree, can do it too.

Only gold jewelry is acceptable by most institutions for a loan, with the quality of Gold maintained as security ranging from 18-22 karats or 24 carats if it is a gold bullion (each lender can get a maximum of fifty Gms).

How to Get a Gold Loan?

You can accomplish this by taking the Gold you intend to pledge and the necessary paperwork to a financial institution. The Gold’s market value is established when the lender verifies its purity and weighs it. Up to 80% of the Gold’s assessed value can be used to secure a loan.
The paperwork is checked when the value of the Gold is determined. Once the lender has determined that your application is highly likely to succeed, they will provide you with a loan. You can now apply for a gold loan digitally through the website or mobile app of a bank or NBFC.

Even if you apply for a gold loan online, you may still have to visit the lending institution physically. If you want to take advantage of the online gold loan option, you must make at least one trip to your lender’s location to deposit your gold items. After completing these steps, you can sign up for the lender’s customer site or mobile app and connect your bank account.

Interest Rate

Loans secured by Gold are typically less expensive than their unsecured counterparts. Gold Loan interest rates are variable and may be more than 10% if you use a riskier lender. The standard loan term for this type of financing is between 6 and 12 months. If you repay your loan in full and on time, you will receive your gold jewelry in the same condition you deposited them.

Gold Loan with Bad Credits

The Reserve Bank of India has mandated that bank check borrowers’ CIBIL scores before approving loans. The bank will have more faith in your ability to make payments if your CIBIL score is high. Therefore, a high grade is essential for your PL application.

On the other hand, loans secured by Gold necessitate the pledge of a relatively liquid tangible item. Due to the protection your gold asset provides, banks are more willing to extend credit to you despite your less-than-perfect credit history.

How to Get an Instant Gold Loan


A gold loan would likely need the least amount of paperwork. This is because a gold loan requires little more proof than your identity and the presence of Gold. No evidence of credit history is required.

Therefore, even borrowers with a low CIBIL score can qualify for a gold loan. Aadhaar Cards, Voter IDs, Driver’s Licenses, PAN Cards, and Passports are all acceptable forms of picture identification provided by the government.


Eligibility requirements may vary by banking institution but are often relaxed and accommodating. A gold loan can be processed in as little as one business day, and a loan against pledged jewelry can be obtained in an hour.

Obtaining a gold loan requires you to submit documentation to the bank manager attesting to your identification and residency. The bank will determine how much your Gold is worth and base their loan offer on a sizable percentage.


There are several financial and non-financial institutions where you can apply for a gold loan with or without collateral. Just bring your Gold, and you’re good to go.

Top 3 Banks For Gold Loans:

Central Bank of India

The finest gold lending company is offering competitive rates.

State Bank of India

The best gold loans, with fixed-term repayments of 3 and 6 months.

Punjab and Sind Bank

Low-interest, immediate gold loans are their specialty.


After reading this, you will know the simple steps in obtaining a Gold Loan. In less than 45 minutes, you can apply for and receive your Gold Loan if you have the necessary identification documents, such as a PAN or Aadhar Card. Get the money you need immediately by applying for a Gold Loan.

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