Gold loan process All you need to know

How does a gold loan work?

It is a secured loan in which the lender gold items as collateral, such as jewellery, ornaments etc. The borrower is issued a loan with this gold as security.

A gold loan can be used instead of a personal loan when borrowing money from a financial organisation.

Where to avail such a loan?

Banks such as SBI, ICICI Bank, HDFC Bank etc

NBFCs which offer gold loans include Muthoot Finance, Manappuram Finance etc.

What is the least and most you can borrow?

The amount of money a person can borrow against a gold item varies depending on the lender

Tenure of gold loan

The duration of the gold loan will also differ depending on the lender. varies from 24 Months to 60 Months

What are the charges?

Besides processing fees, borrowers may be required to pay for the valuation of gold that will be used as collateral by the lending institution

What are the charges?

For example, HDFC Bank charges Rs 250 for loans up to Rs 1.5 lakh and Rs 500 for loans exceeding Rs 1.5 lakh as valuation costs.

Documents required?

Your identity proof (PAN, Aadhaar, etc.) and proof of address (Aadhaar, passport, Voter-ID card, etc.) are usually required, as well as your photograph.

Foreclosure of gold loan

However, gold loans usually carry a pre-closure fee, which varies depending on the bank/NBFC.