GOLD LOAN FORM
Overview
“A gold loan is a method of availing finance/loan against your gold ornaments or jewellery such as bangles, necklaces, bracelets, earrings, pendants, watches, gold coins, etc.”
Avail a gold loan from a bank in India with interest rates ranging between 7% p.a. and 29% p.a. You can avail a loan amount of up to Rs.1.5 crore and repayment tenure starting at 3 months and going up to 4 years depending on the loan scheme availed by you. You can pledge your gold ornaments and jewellery for funds in the event of a financial emergency.
Key Features of Gold Loan
- Purpose: You can avail a gold loan in order to finance various needs, such as for educational purposes, medical emergencies, going on a holiday, and so on.
- Security: The gold that has been pledged with the bank or the financial institution acts as the security or collateral against which the loan amount is provided.
- Tenure options: The tenure options can range from a minimum of 3 months to a maximum of 48 months.
- Fees: The other fees and charges that might be applicable on a gold loan are – processing fee, late payment charges/ penalty for non-payment of interest, valuation fees, etc.
- Repayment Options: There are three main options offered by lenders to borrowers for the repayment of a gold loan. These are:
- Repayment in Equated Monthly Installments (EMI)
- Payment of interest upfront and repayment of the principal loan amount at the end of the loan tenure.
- Payment of interest on a monthly basis and repayment of the principal loan amount at the end of the loan tenure.
Any Indian citizen can avail a gold loan from banks or non-banking financial institutions (NBFCs) and
generally the age criteria ranges from a minimum of 18 years to a maximum of 75 years. This might vary
from lender to lender.
You can either directly walk into a branch to make a cash payment or pay online using the company’s web
portal. Based on the lender’s terms and conditions, you may be able to make the payment with your debit
card, credit card, etc. Kindly contact your lender for more information on the same.
Lenders usually verify and approve gold loan applications in a timely manner. Once your application is
approved, you will receive the loan amount. The disbursal time may vary from a few minutes to up to 48
hours, in most cases.
This will vary based on the lender’s terms and conditions. Certain lenders may allow you to pre-pay the
loan amount at any time, without having to pay a fee for the same. In some cases, certain financial
institutions and banks will require you to pay a certain fee if you want to pre-pay the loan amount.
Most lenders have an eligibility calculator on their respective websites, which you can use to know how
much you are eligible to borrow. The amount that you will be allowed to borrow will be based on the value
of your ornaments or jewellery.
Most lenders who offer gold loans do not require prospective applicants to have a guarantor. However, for
high-value loans, you may be required to have a guarantor.