IIFL Gold Loan gives you the flexibility of finance and repayment. You can borrow for up to 11 months and get maximum funds based on LTV. The Loan to Value Ratio is up to 75% of the asset’s market value. But you can apply for as little as Rs. 3,000 for your personal or any other kind of expenses. There are no part-prepayment charges. You can submit gold jewellery and bank-sold gold coins as collateral. The interest rate starts from 9.24%, which is one of the lowest among competitors.

In this post, we will discuss IIFL gold loan features, eligibility criteria, interest rate, factors that influence the rate of interest, documents required, loan application process, and FAQs.

Features of IIFL Gold Loan

Here are the features:

• You can avail of flexible repayment for up to 11 months of tenure.
• The lowest rate of interest per annum is 12% onwards.
• You may borrow as little as Rs. 3,000 to 75% of the gold’s market value.
• Loan approval after verification takes sometimes as little as 5 minutes only.
• The loan amount gets to you either in cash or to the account within 30 minutes of approval.
• The institution also provides customized schemes as per your needs.
• The pledged asset is stored in burglary-proof vaults. The jewellery/bank-sold coins are submitted back to the borrower after successful repayments.
• A free insurance cover is provided for the collateral.
• The NBFC has a transparent process and a PAN India Branch network. It has a dedicated support team and serves millions of customers.

Eligibility Criteria for Gold Loan IIFL

Here are the eligibility norms:

• The borrower should be a resident Indian.
• He/she must be at least 18 years of age to apply for the loan.
• He/she must have the gold of at least 18 carats.
• He/she must be prepared to keep the asset with the bank until the dues are cleared.
• Partial release may be eligible if repayments are done on time for a specific gold value.

IIFL Gold Loan Interest Rates

The IIFL Gold Loan interest rate charged is related to various factors;

• The interest rate per year is 9.24%-24%.
• The rate of interest charged depends on your repayment capacity, gold weight and purity the foremost, and other factors.
• Acceptable forms of gold are bank-purchased coins and self-owned jewellery.
• The bank has the right to change its interest rates and borrowers have to clarify with the bank about the existing bank rate.

What Determines the IIFL Gold Loan Rate?

The calculation of jewel loan interest rate depends on the below-mentioned aspects.

• Loan Amount The loan amount sanctioned depends on the weight and purity of the jewellery pledged with the financial institution. IIFL gold loan interest rate calculation takes into account the loan amount to determine the rate of interest. The institution will offer an amount depending on per gram of gold of specific purity. The loan amount is also influenced by loan to value ratio, which can be up to 75% of the gold’s actual market value. A higher loan amount may attract a lower rate of interest, and vice-versa.
• Tenure The period of the loan is one of the important factors to determine the rate of interest. Higher rates are usually charged for shorter tenure loans and vice-versa. However, the tenure primarily depends on your repayment capacity and the gold’s purity, weight, and of course, the loan amount. A suitable tenure is chosen in a way that you will be able to pay off the EMIs on time. A longer tenure will cause an increased interest pay-out, but smaller instalments every month, and vice-versa.
  You should check with IIFL for their repayment options. Sometimes, you may be allowed to repay the interest amount in instalments through the tenure with complete repayment of the principal amount at the end of the tenure. Or else, you may have to pay interest and principal component in parts and parcel every month till the end of tenure.
• Relationship with the NBFC A sound and healthy relationship with IIFL will help you secure additional benefits and a quick loan procedure. The financial institution may trust its existing customers because of its proven repayment track record and already submitted documents. In this case, there are higher chances of receiving the best interest rate, compared to new customers. The NBFC is likely to trust a customer who has already made successful repayments on time with the institution, to offer discounted rates of interest.
• Repayment Capacity Though in a jewellery loan, your repayment capacity is not a primary concern since gold pledged acts as sufficient security, the NBFC may offer a better rate of interest if your repayment capacity is good. It indicates to the lender that you may not default at repayments and pay the instalments in time.

Documents Required to Apply for Gold Loan IIFL

Below given is a list of documents needed to apply for the loan:

1. Photographs and Application Form

You need to attach 2 recent passport-sized photographs with duly filled and signed loan application forms.

2. Identity Proof (any one of the mentioned):

PAN card is mandatory. Besides that, you can submit any of the proofs for identity such as a Driving Licence, Passport, Job Card issued by NREGA, Voter ID Card, Aadhaar card, etc.

3. Address Proof (any one of the mentioned):

You can submit an electricity bill, telephone bill, trade license, Ration Card, Passport, lease agreement, purchase agreement, etc.

How to Apply for Gold Loan IIFL?

To apply for a jewellery loan with a financial institution, you can either choose an online or offline method of loan application as mentioned below.

1. Online Process:

Visit the official website of IIFL and look for an online loan application facility for a loan against gold. If such a facility is available, you will be able to submit the loan application on the website itself by attaching the necessary documents’ soft copy. After dropping the application, you will be contacted by one of the customer executives to discuss the procedure further. You will be able to even track your loan application online. However, for the gold valuation process, you may have to visit the nearest branch office.

2. Offline Process:

Visit the nearest branch office in your area and enquire for jewellery loan details and schemes. A customer executive will run you through the necessary details and suggest schemes best suited for your requirements. If interested, you can fill up the loan application form at the branch itself. It is best to carry necessary documents and gold to be a pledge for valuation, in case you plan to apply for the loan.

3. Disbursal Process:

After gold valuation and application procedure are done, a loan amount and other aspects, such as interest rate, tenure, and other terms and conditions will be finalized. If the terms are agreeable, you can ask for the loan agreement and sign it. After the loan process is complete, the funds will be transferred to your bank account the same day.