🏅 Gold Loan: Unlock the Power of Your Gold

A gold loan is a secured loan where individuals pledge their gold ornaments or coins to a bank or NBFC in exchange for instant funds. This type of loan is ideal for meeting short-term financial needs such as medical emergencies, business requirements, or personal expenses—without selling your gold assets.

🔍 What is a Gold Loan?

A gold loan is a form of secured credit where your gold acts as collateral. The lender evaluates the value of your gold (based on purity and current market price) and sanctions a loan amount, typically up to 75% of the gold’s value. Once repaid, the gold is returned to the borrower.

💡 Features of a Gold Loan

• Loan Amount: Based on the weight and purity of gold—generally up to 75% of market value.
• Tenure: Short-term, usually from 3 months to 3 years.
• Interest Rates: Typically ranges from 7% to 15% per annum.
• Collateral: Gold jewelry or coins (usually up to 50 grams of gold coins).
• Processing Time: Fast disbursal—often within a few hours.

✅ Benefits of a Gold Loan

• Instant liquidity using idle gold assets.
• No need for income proof or high credit score.
• Lower interest rates compared to unsecured loans.
• Option to repay via EMI, bullet payment, or interest-only payment methods.

📋 Eligibility Criteria

• Age: Typically between 18 to 70 years.
• Ownership: Gold must be owned by the borrower.
• Citizenship: Indian residents only.
• Credit Score: Not mandatory, though it may help with better terms.

📄 Documents Required

• Identity Proof (Aadhaar, PAN, Passport, Voter ID)
• Address Proof (Electricity bill, Aadhaar, Driving License)
• Photographs
• No income proof required in most cases

📊 Loan-to-Value (LTV) and EMI Options

The LTV ratio is capped at 75% by RBI guidelines. That means if your gold is valued at ₹1,00,000, you may get a loan of up to ₹75,000. Repayment options include:

• EMI-based repayment
• Bullet repayment (entire loan at once)