Gold loans are secured loans where the customer pledges the gold ornaments they hold as a collateral deposit against the money they are going to receive. Gold loans are usually taken for short term financial obligations.
Benefits of Gold Loan
- Convenience: Access funds quickly with minimal paperwork.
- Financial Flexibility: Tailor your repayment plan to suit your needs.
- Affordability: Enjoy low-interest rates and save money on borrowing costs.
- Peace of Mind: Know that your gold assets are secure and your personal information is protected.
- Accessibility: Qualify for a loan regardless of your credit history or financial background.
Characteristics of Gold Loan
- Quick Access to Funds: Get money fast when you need it most.
- High Loan Amounts: Borrow a significant portion of your gold’s value.
- Flexible Repayment: Choose a repayment plan that fits your budget.
- Competitive Interest Rates: Enjoy affordable rates for borrowing.
- No Prepayment Penalties: Pay back your loan early without extra fees.
- Security and Confidentiality: Your gold and personal information are safe with us.
- No Credit Checks: Your credit history doesn’t matter – as long as you have gold, you’re eligible.
Gold Loan - Eligibility
| Eligibility Criteria | Requirement |
| Person Age | 18 - 70 |
| Gold Purity | 18 -22 Carats |
| LTV Ratio | Maximum 75%of gold value |
| Nationality | Indian |
EMI Calculator for Gold Loan
Gold loans act as the quickest and easiest way to get funds for business or personal requirements. The loan amount that sanction is typically a certain percentage of the gold’s value.Â
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Calculate Your Gold Loan EMI
Like any other loan, you can repay this with the help of monthly installments and once the loan has been fully repaid, you receive back your gold articles.
The formula to calculate EMI for a Gold Loan is:
EMI = [P x R x (1+R)^N]/[(1+R)^N-1]
- P represents the principal loan amount
- R represents the monthly interest rate, calculated by dividing the annual rate by 12 and converting it to a decimal.
- N denotes the loan tenure measured in months.
Documents required for Gold Loan
- Passport
- PAN Card
- Voter’s ID
- Aadhar Card
- Driving License
- Recent passport size photographs
Address Proof :
- Passport
- Utility Bill (telephone, electricity, water, gas) – less than 2 months old
- Aadhaar Card
- Driving License
- Ration Card
- Rental Agreement
- Salary slips (Last 3 months)
- Bank statements for the last 3 to 6 months (showing salary credit)
Tax Paid(Any one):
- IT Returns(for 2 years)
- Form 16
Ownership Proof :
- Gold items purchase receipt, invoices, bills
A personal loan is a type of loan that is typically unsecured, meaning it doesn’t require collateral like a car or a house. It is often used for various personal expenses such as home renovations, medical bills, or debt consolidation.
To get a gold loan, you need to pledge your gold jewelry with the lender. The lender assesses the value of the gold and offers a loan amount based on the value. The loan is disbursed, and you repay it along with interest within a specified period. Once the loan is repaid, you can retrieve your gold.
Eligibility criteria for a gold loan vary among lenders but typically include factors such as age, ownership of gold, and its purity.
The maximum loan amount loan varies from one lender to another. It can range between Rs. 1,500 and Rs 1 Crore depending on the eligibility criteria of particular bank/institution.
Loan amount, Monthly income, Credit score may affect the rate interest of a gold loan.
The purity of the gold should range between 18k to 24k. You can pledge any gold ornament as collateral for a gold loan. The value of gold determines the loan amount you get. If gold jewellery has gems or gemstones, the price will not increase, as only gold value matters.
Calculate Your Gold Loan EMI
Like any other loan, you can repay this with the help of monthly installments and once the loan has been fully repaid, you receive back your gold articles.
The formula to calculate EMI for a Gold Loan is:
EMI = [P x R x (1+R)^N]/[(1+R)^N-1]
- P represents the principal loan amount
- R represents the monthly interest rate, calculated by dividing the annual rate by 12 and converting it to a decimal.
- N denotes the loan tenure measured in months.