Gold Loan

What is a Gold Loan?

A gold loan or loan against gold is a loan provided by banks or NBFCs against the gold jewellery submitted by borrower, as collateral. You can pledge gold ornaments and only bank-purchased gold coins. The funds can be utilized to fulfil any financial needs. You can take loan for travel trips, wedding expenses, home repair, vehicle purchase, education, shopping essentials, medical expenses, etc.

• The gold in question must be 20 carats and above. Loan is not provided on other forms of gold such as gold bar, biscuit, wires, etc.
• This loan is secured, where gold is kept as collateral until you do not repay the loan completely (principal amount + interest amount).
• Financial institutions offer triple-layered security to the gold, without any charges. In case of non-repayment the bank/NBFC has the right to keep the gold with itself.

On loanbaba.com you will find all information about gold loans. You can compare and apply for a loan against gold on the website.

Features of Gold Loan

Below given are features of Gola Loan:

• The loan to value ratio (LTV) is maximum 75% of the gold’s current market value. The gold loan amount will depend on the LTV, gold’s weight, and its purity. Contents in the jewellery apart from gold will not be considered to calculate the loan amount.
• The loan amount offered by financial institutions is between Rs. 1 lakh to Rs. 1 crore.
• Loan disbursal is done the same-day of the loan approval. You can get the funds in as less as just 45 minutes. Thus, it is an ideal option if you want instant cash.
• Low interest rate starting from 10.50% up to 13.50%. There are special gold loan schemes for women, agriculturists, small businesses at reduced interest rates.
• Gold loan tenure is between 6 months and 2 years.
• No credit score check is not mandatory but having a credit score of 600+ helps.
• Minimal documentation involved: Identity proof, address proof, and recent passport-sized photographs. No need to submit bank statements, salary slips, and IT return proof.

Types of Gold Loans in India

Eligibility Criteria for Gold Online Loans

Given below is a set of eligibility criteria for online gold loan apply with Loanbaba.

• Anyone can apply: regular income group, professionals, salaried, businesspersons, homemakers etc.
• No minimum income required
• The applicant must be of at least 18 years of age
• Gold ornaments should be at least 20 carats and above

Documents Required to Apply for Gold Loan

If you want gold loan urgent then do not worry, just submit the gold jewellery for valuation at the bank after applying online, and get the funds in a jiffy.

• Two passport size photographs.
• A copy of identity proof document (any of the following): Ration card, driving license, Aadhar Card, Passport, etc.
• A copy of address proof documents (any of the following): Utility bill, telephone bill, or electricity bill, etc.

Gold Loan Interest Rates in India

The loan against gold interest rate is between 10.50% and 13.50%. But these rates are subjected to changes as per the policy of RBI and bank/NBFC.

• There are no collateral free gold loans, which goes to say that the gold jewellery against which the funds will be taken, has to be kept as security with the bank.
• Women, farmers, and MSMEs can get the loan at discounted rates.
• Secured loans carry a lower rate than unsecured loans, and the interest rate of gold loan will depend on the loan amount, tenure and other factors.

Top Providers for Gold Loans in India

Both banks (private and public sector) and non-banking financial companies provide loan against gold India. However, some of the major providers you can check out are:  Muthoot Finance, Manappuram Finance, Allahabad Bank, HDFC Bank, SBI (State Bank of India), ICICI Bank, Bajaj Finserv, Axis Bank, etc. If you need gold loan from these or any other providers, you can compare gold loan, select, and apply for it on our website.

1. HDFC Bank:One of the most popular HDFC bank gold loan scheme is “Sampoorna Bharosa”. It is offered at an attractive interest rate. The minimum amount of loan under this scheme is Rs. 50,000.
2. Axis Bank:Axis gold loan can be disbursed within 2 hours. The amount of loan that can be availed under this scheme is between Rs. 25,001 and Rs. 2,000,000. Edge loyalty points can be earned on this transaction.
3. ICICI Bank:The quantum of ICICI Bank gold loan is calculated per gram of gold, and is comparatively high against other financial institutions. The maximum loan which can be sanctioned under this scheme is Rs. 1,500,000.
4. Muthoot Finance:The Muthoot Finance gold loan amount starts at Rs. 1,500. This NBFC features a variety of schemes for gold loan suitable for different types of customers.
5. Mannappuram Finance Limited:This NBFC offers gold loan at a lower rate of interest than many banks, with the feature of an instant fund disbursal.

Gold Loans Interest Rates of Top Banks/NBFC

Bank	Loan Amount	Gold Loan Interest Rates*	Lowest EMI per lakh for Max Tenure
State Bank of India Gold Loan	Rs. 20 Lakhs Max	11.05%	Rs. 3,276 for 36 months
HDFC Bank Gold Loan	Rs. 50 Lakhs Max	10.50% - 14.50%	Rs. 4,638 for 24 months
ICICI Bank Gold Loan	Rs. 15 Lakhs Max	10.00% - 16.10%	Rs. 8,792 for 12 months
Axis Bank Gold Loan	Rs. 20 Lakhs Max	14.50% - 17.00%	Rs. 3,442 for 36 months
Andhra Bank Gold Loan	Rs. 20 Lakhs Max	9.70% - 10.45%	Rs. 8,778 for 12 months
Yes Bank Gold Loan	Rs. 50 Lakhs Max	10.50% - 15.99%	Rs. 3,250 for 36 months
Manappuram Gold Loan	Rs. 1 Cr Max	10.75% - 11.75%	Rs. 8,827 for 12 months
Muthoot Finance Gold Loan	Rs. 1 Cr Max	12.00% - 26.00%	Rs. 8,885 for 12 months
Canara Bank Gold Loan	Rs. 10 Lakhs Max	12.65%	Rs. 8,915 for 12 months

Gold Loan EMI Calculator

Gold loan India can be repaid in many ways, as mentioned below:

• EMI- Equated monthly instalment or EMI is the amount paid every month towards loan repayment. The EMI comprises of both principal and interest component of the loan.
• Pay the interest amount in lump-sum and at the end of tenure, repay the principal amount.
• Pay the interest component every month till loan’s tenure. After which, you can repay the balance principal amount in a single instalment

You can access free-of-cost Gold Loan EMI calculator at our website to check for the exact EMI amount to be paid.

Why Choose Loanbaba to Help You Find Gold Loan?

At Loanbaba, you can access unbiased comparison of loan against gold across leading NBFCs and banks. Here is why you should apply for a gold loan on our website.

• You can compare and apply for gold loan on our website. No need to visit bank branch! Get quick quotes from leading fund-providers.
• We offer you doorstep service and top-notch customer support.
• It takes less than 2 minutes to apply online. You can submit the softcopy of the documents with the loan application form filled on the website.
• We offer you free financial tools such as gold loan EMI calculator and gold loan eligibility calculator to understand the total loan cost and the best to place to apply for the loan.

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  Frequently Asked Questions on Gold Loans

  1) Why do I require a Gold loan?

  Ans: During an urgent financial need, your gold ornaments can easily unlock easy cash for you. You can use the funds for any financial purpose.

  • Low interest rate on gold loan makes it feasible compared to unsecured loans. Loan against gold is thus budget-friendly financing method.
  • You do not have to carry the burden of debt for a long time since the repayment is up to only 2 years.
  • You have to pay only the interest amount till the loan tenure and principal amount can be paid at the end of the tenure. Thus, you can manage the repayment comfortably.

  2) How do I apply for a gold loan online?

  Ans: You can apply for gold loan online at Loanbaba after comparing the banks/NBFCs offers.

  • Click ‘Gold Loan’ icon on the homepage of our website. Fill the application form and provide a few basic details about yourself, the loan amount you need, gold weight, etc.
  • A customer representative will contact you shortly to discuss the best loan offer suited to your needs.
  • The application process is paperless. You do not have to submit hard copies of the documents.
  • After the verification of documents and gold valuation, the financial institution will disburse the loan amount to your bank account.

  3) What happens to my loan against gold when the gold prices fall down?

  Ans: In case the gold price drops over a month, the financial institution may request you to pay partly for the loan. The loan amount approved will be up to 75 percent of the gold you pledge, which is evaluated at current gold price. LTV (the loan to value) will base on purity of gold. Also, LTV is determined from a running average of gold cost for a month or up to 3 months. LTV can differ by some amount, but depends on the calculation system by the financial institute. If the gold price drops, the bank or NBFC drops the LTV for gold loan.

  4) What kind of jewellery will get me best gold loan per gram or best gold loan rate?

  Ans: There is no specific condition about which gold jewellery will fetch better gold loan rates, as the gold valuation depends on the gold weight and purity and not the jewellery type. Some of the well-accepted forms of gold ornaments are necklaces, anklets, rings, bangles etc. Any other metals or precious gems in the jewellery will not be taken in consideration to calculate the loan amount. The loan amount will be calculated only on the gold content.

  5) When will I get back my gold ornaments?

  You will get back the pledged gold ornaments in a few days of completing the repayment of the loan (both interest and principal component). Until then, the jewellery will be kept securely with the bank/NBFC.