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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.

Features of Gold Loan


  1. 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.
  2. The loan amount offered by financial institutions is between Rs. 1 lakh to Rs. 1 crore.
  3. 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.
  4. 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.
  5. Gold loan tenure is between 6 months and 2 years
  6. No credit score check is not mandatory but having a credit score of 600+ helps.
  7. Minimal documentation involved: Identity proof, address proof, and recent passport-sized photographs. No need to submit bank statements, salary slips, and IT return proof.



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Eligibility Criteria for Gold Online Loans

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

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

Documents Required to Apply for Gold Loan

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