gold loan

Gold Loan

Gold loan is one of the most secured loans in India that helps loan borrowers in times of financial crisis. As per the different types of loans, the loan borrower has to pay the EMI as per his requirement in yearly, monthly, or quarterly, and the interest amount at the end of the tenure period of the loan borrower can choose the bullet repayment mode. Generally, the Gold Loan tenure is of 12 months while in some cases it can go up to 5 years.

But due to the monetary condition or economical crisis one cannot pay their loan dues on time. If the dues of the loan are pending for a long time then the loan borrower will have a different outcome on him which the borrower is not aware of Gold loan also helps the people with low credit score to meet their immediate cash needs and raise funds for themselves.  

With it, Gold loan facilities in Delhi have also become cheap and affordable. In this article, we are going to cover all the detailed charges which the customer should know after buying the gold loan.

Penal charges:

Honestly speaking, selling gold in India is one of the easiest things to do. But what makes it difficult is to find a reputed buyer for it. One of the most important things to consider while selling gold is that you should sell to the shopkeeper from where you have brought. If you sell to that shopkeeper then he will give you the original price of the gold without arguing on the purity of gold.

Remainder text messages/ call/ letter:

The company will send you a reminder via phone call, text message, or a letter. In such a case, a loan borrower can reset their schedule of repayment by visiting the bank from where you have taken the loan to solve your economical crisis.


If all the dues of the loan are not paid within the given time of the loan, the company has all the right to sell the loan through public auction. Before the announcement of the public pledged gold auction the company will inform the loan borrower before two weeks. If there is any glut on such a deal, the company will have the right to modify that amount towards any other penalty of the company. In such a case, it is refunded to a borrower within 30 days of the auction.

Advantages of the gold loan:

Lending money on gold jewellery has a very long history in India. Gold loans have become a great value in this pandemic. Interestingly, there are certain benefits that an individual can reap from this kind of loan. A maximum of Rs10,00,000 loan amount could be taken by pledging your gold. However, the amount may differs with the weight and quality of Gold you want to pledge. A minimum of 30gm of gold should be with you to avail the gold loan.

Faster Processing:

The only benefit of the personal loan is that the process of loan is very fast. As gold loans are verified by physical gold, banks tend to give the loan much faster and without any hassle. They are easy to avail, fast, reliable and involves hassle free process. It is also safe for a banker to obtain a financial proof as they could sell the gold in critical condition. These are the main  reasons why banks distribute such loans within an hour. Lower interest rate: The next reason for the gold loan is the lower interest rate. The loan borrowers are charged at low interest as they happen to be secured also. On average interest rate for the personal loan is between 15 to 18 percent. However, the interest rate from gold loans starts from 13 percent which is more affordable for loan borrowers.

No foreclosure charges

The RBI reserve bank of India has banned taking any foreclosure charge from an individual borrower with mortgage loans. But the banks are free to charge the fees on a loan that is not secured. To ensure your security the bank needs your physical loan to deposit in the bank.

No processing fees:

As we know that gold loans are given very rapidly after verifying the physical gold. So most of the banks and NBFCs do not charge any processing fees. As the bank keeps the physical gold until the loan amount is clear so the banks don’t charge any extra processing fees.

Income proof is not needed

When you buy a loan you might need an income proof for a loan. But when you buy a gold loan or personal loan income proof is not needed. Only the documents like adhar card bank passbook etc are taken by the bank and no other document is required. 

However, to avail the gold loan facility, you will have to provide the proofs of identity like Driving License / PAN Card / Form 60/61 / Passport Copy / Voter ID Card / Aadhaar Card / Ration Card), two passport size Photographs and address proof. You should also check that you are 21 or above of age and eligible for this.

The credit history is not required

If you want a loan from a bank, check your credit history. But to obtain a gold loan the credit score is not required. As to obtain a gold loan no such things are needed. Only you need to deposit physical gold till the loan amount is cleared. It doesn’t matter whether you have a good credit score or you are employed or not, you can easily avail the Gold loan facility. However, for higher loan amounts that carries more than half the value of the gold, some lenders might ask

for a salary certificate.

Hence we can say that obtaining gold has quite a lot of benefits and can take you out in your difficult situations.


India Gold Trading Office No 513, Above bagicha restaurant opposite punjab national bank Mahatma Gandhi Road +91 7887881665 


Close Menu