Interest Rate  7.50% p.a. onwards 
Loan Amount  Up to Rs.1.5 crore 
Loan Tenure  3 months onwards 
Processing Fee  0% - 2% of the loan amount + GST 

Features of Gold Loan

Purpose: You can avail a gold loan in order to finance various needs, such as for educational purposes, medical emergencies, going on a holiday, and so on.

Security: The gold that has been pledged with the bank or the financial institution acts as the security or collateral against which the loan amount is provided.

Tenure options: The tenure options can range from a minimum of 3 months to a maximum of 36 months.

Fees: The other fees and charges that might be applicable on a gold loan are – processing fee, late payment charges/ penalty for non-payment of interest, valuation fees, etc.

Repayment Options: There are three main options offered by lenders to borrowers for the repayment of a gold loan. These are:

  • Repayment in Equated Monthly Installments (EMI)
  • Payment of interest upfront and repayment of the principal loan amount at the end of the loan tenure.
  • Payment of interest on a monthly basis and repayment of the principal loan amount at the end of the loan tenure.

Rebates: Several lenders offer the option of discount on the prevailing interest rate on the loan against gold if the borrower repays the interest regularly. This rebate can be 1% - 2% off on the original rate of interest.

Gold Loan Providers Interest Rate Loan Amount Tenure
Manappuram Gold Loan Up to 29% p.a. Rs.1,000 to Rs.1.5 crore 3 months onwards
SBI Gold Loan 7.50% p.a. onwards Rs.20,000 to Rs.20 lakh Up to 36 months
HDFC Gold Loan 9.90% to 17.90% Rs.25,000 onwards (Rs.10,000 for rural areas) 3 months to 24 months
ICICI Gold Loan 10% p.a. to 19.76% p.a. Rs.10,000 to Rs.10 crore 3 months to 12 months
Axis Gold Loan 15% p.a. onwards Rs.25,001 to Rs.20 lakh 3 months to 36 months
Canara Gold Loan 7.65% p.a. Rs.10,000 to Rs.10 lakh Up to 12 months
Bank of Baroda Gold Loan 10.35% p.a. Up to Rs.25 lakh Up to 12 months
Karnataka Bank Gold Loan Contact bank for updates Up to Rs.5 lakh per account Up to 12 months
PNB Gold Loan 7.8% p.a. onwards Rs.25,000 to Rs.10 lakh As per the lender’s terms and conditions
India Infoline (IIFL) 12% p.a. onwards Rs.3,000 onwards Up to 11 months
Kotak Mahindra Gold Loan 10.5% to 17% p.a. Rs.25,000 to Rs.25 lakh 12 months onwards
Federal Gold Loan 8.50% p.a. onwards Rs.1,000 onwards As per the lender’s terms and conditions.
Central Bank of India 9.05% p.a. onwards (floating) Up to Rs.20 lakh Up to 12 months

Gold Loan Eligibility

If you wish to avail a loan against your gold jewellery or ornaments, you should ensure that you meet the eligibility criteria specified by the lender. Keep in mind that the eligibility criteria will vary from lender to lender. Thus, it is advisable to check the eligibility criteria that is specified on the lender’s website before applying for a gold loan. Listed below are the generalised eligibility criteria:

Age of the applicant 18 years and above
Security to be pledged Gold ornaments or articles
Total carats of gold that can be pledged 18 carats or above
Other criteria Applicant must be creditworthy

What are the Documents Required?

Generally, the following documents have to be provided by the borrower in order to avail the gold loan:

  • Duly-filled application form
  • Passport sized photographs
  • Identity proof
  • Address Proof
  • Signature Proof
  • Form 60 or PAN card
  • Proof of age
  • Post-loan disbursement documents, if any.

Frequently Asked Questions

  • A gold loan is a method of availing finance/loan against your gold ornaments or jewellery such as bangles, necklaces, bracelets, earrings, pendants, watches, gold coins, etc.

  • Any Indian citizen can avail a gold loan from banks or non-banking financial institutions (NBFCs) and generally the age criteria ranges from a minimum of 18 years to a maximum of 75 years. This might vary from lender to lender.

  • You can either directly walk into a branch to make a cash payment or pay online using the company’s web portal. Based on the lender’s terms and conditions, you may be able to make the payment with your debit card, credit card, etc. Kindly contact your lender for more information on the same.

  • Factors such as rate of gold on the particular date, purity of the gold used to make the jewellery, etc. affect the loan amount that you will receive against the gold ornaments pledged with the lender.

  • Lenders usually verify and approve gold loan applications in a timely manner. Once your application is approved, you will receive the loan amount. The disbursal time may vary from a few minutes to up to 48 hours, in most cases.

  • Most lenders store pledged assets in a strong room that has electronic surveillance technology. Also, lenders may insure the gold ornaments or assets for their total value. That said, given the nature and value of the assets, it is best to do your research with regard to the measures that are taken by the lender to safeguard your jewellery and assets

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