When you require quick funds for personal or business purposes, a loan against gold can be a practical and convenient option. You can borrow money by pledging your gold assets, like jewellery or coins, to the lender.

Thankfully, the process has become much easier these days. You no longer need to visit a bank to apply for the loan.Many banks and financial institutions now provide the option to apply for a loan against gold online. Learn how to apply online and meet your financial needs without any delays.

Understanding Gold Loans

Borrowing money against your gold assets is a quick and straightforward process. Here are some key things to know about gold loans:

You pledge your gold jewellery to receive funds
You retain ownership of your gold, which is returned to you after full repayment of the loan
Many banks and Non-banking Financial Companies (NBFCs) provide gold loans
These loans come with no restriction on end usage. You can use the amount for personal expenses, business needs, medical emergencies, or other urgent requirements
The loan amount depends on the current gold price, as well as the weight and purity of your jewellery

Eligibility Criteria and Documents Required for a Gold Loan

You need to meet a few basic criteria to apply for a loan against gold. You also need to provide certain documents to complete the gold loan process. Here are the general requirements:

Eligibility Criteria

Must be an Indian citizen
Age should be between 21 and 70 years
The gold you pledge needs to have a purity between 18 and 22 karats

Paperwork Requirements

You need to submit one of the following ID proofs:

Aadhaar Card
Voter ID Card
Passport
Driving Licence
NREGA Job Card

You may also have to submit your address and income proofs.

How to Apply for a Loan Against Gold Online?

Applying for gold online is a hassle-free process. You can begin the application from the comfort of your home.

Follow a few simple steps, and you will be on your way to securing funds without the need to sell your gold:

Access the official website or the app of the gold loan provider of your choice
Click on the option that lets you start a new loan application
Enter your 10-digit mobile number and request a one-time password (OTP)
Submit the OTP to verify your mobile number and proceed
Fill in the required details, such as KYC details, details of the gold you want to pledge, and the loan amount you need
Submit the application form

After submission, a representative may contact you to guide you through the remaining steps.

Features and Benefits of a Gold Loan

A loan against gold comes with many useful features that make it a safe option to borrow money. Here are some of the key benefits of a gold loan:

Interest rates start as low as 9.24% p.a.
You typically need to provide only your basic KYC documents
Most lenders do not enforce stringent income or credit score criteria
Some lenders may not even levy additional charges when repaying part of the loan early or settling the full loan before the due date
Lenders use modern karat metres at their branches to assess your gold quickly and fairly
Free insurance is provided to secure your gold against theft or loss while it remains with the lender
You can select flexible repayment options, usually up to 36 months, and pay interest monthly, quarterly, half-yearly, or yearly, or according to your preference
You can obtain an instant gold loan starting from ₹5,000 up to ₹2 Crores, depending on your requirement and the value of your gold
Some lenders offer doorstep gold loans, with experts visiting your home to assess and disburse the loan for added convenience

Things to Know Before Taking a Gold Loan

Before applying for a loan against gold, you need to understand a few important points. This helps you receive the best value and prevents any unexpected issues later. Here are some key points:

Check the Purity and Value of Your Gold

You receive a higher loan amount for gold of greater purity. Ensure that your jewellery is between 18 and 22 karats.

Know the Interest Rate and Loan Tenure

Use a gold loan calculator to estimate the interest payable. Choose a repayment period that fits your financial plan.

Understand the Loan-to-Value (LTV) Ratio

This ratio indicates how much of your gold’s value you can borrow. Lenders typically offer up to 75% of the gold’s value.

Keep your Documents Ready

You need to have your identity and address proofs ready. This helps speed up the loan application process.

Applying for a loan against gold online offers a quick and convenient way to secure funds when needed. By following the simple steps and keeping the required documents ready, you can easily receive funds at your home.

Before applying, check the live gold rate in Pune or your city, as this helps estimate the loan amount you could receive against your gold. Stay updated with the latest rates and choose a trusted lender to ensure a safe and smooth borrowing experience.

How to Apply for a Gold Loan Online: A Step-by-Step Guide

When you require quick funds for personal or business purposes, a loan against gold can be a practical and convenient option.