How to apply for a gold loan?

Like any other loan, via both online and offline, a gold loan can be applied. While the offline procedure is generally chosen by most individuals, lenders often offer online gold loan alternatives. You just need to go to the official portal of the lender and fill in the basic details online. The official will get back to you after you submit the loan application form. Your request will be further verified following authentication of the gold submitted by you along with your personal information.

Eligibility and required documents

Eligibility and required documents

The loan can be used by someone who owns gold ornaments. However, only individuals over 18 are taken into account. By submitting gold jewelry in the 18K to 24K karat range to the branch, the eligible person can use the loan. By submitting gold jewelry in the 18K to 24K karat range to the branch, the eligible person can use the loan. As this is a loan secured against a gold asset, no proof of income is required. Therefore, only basic KYC papers, which are passport-sized photographs, proof of identity, and proof of address, are required to apply for the loan.

How is the gold loan amount calculated?

How is the gold loan amount calculated?

Based on the type of collateral that is placed, the loan amount is determined. At any given time and date, the maximum loan amount you will get against the gold product depends on the weight and current market value of the gold. Other considerations are often taken into account, such as the type of gold and the borrower’s repayment potential.

Importance of the CIBIL score when applying for a gold loan

Importance of the CIBIL score when applying for a gold loan

To get lower rates on loans, it is always beneficial to have a strong credit history. That being said, some people who use this loan don’t even have a job, but the loan eligibility is affected by the lack of credit history. A credit score is a representation of how you handle your loan payments in a professional manner. But to bring it up, yes your credit score is influenced by the gold loan or the credit in particular. The judicious administration of your gold loan payments will increase your credit score.

Gold loan rate

Gold loan rate

Banks ROI in%
Bank of Maharashtra 7.35
Bank of India 7.40
National Bank of India 7.50
Bank of Punjab and Sindh 7.50
Canara Bank 7.65
UCO Bank 8.50
Federal Bank 8.50
Bank Lakhsmi Vilas 8.80
HDFC 9.50
Kotak Mahindra Bank 10.0


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