Gold Loan - Apply Loan Against Gold Online in India

Key Features of a Gold Loan  

Listed below are some of the features of a gold loan: 

1. Purpose: You can borrow a gold loan to finance various needs, such as for educational purposes, medical emergencies, going on a holiday, and so on. 

1. 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. 

1. Tenure options: The tenure generally can range from a minimum of six months to a maximum of 48 months. 

1. 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. 

1. Repayment Options: There are three main options offered by lenders to borrowers for the repayment of a gold loan. These are: 

1. Repayment in Equated Monthly Installments (EMI) 

2. Payment of interest upfront and repayment of the principal loan amount at the end of the loan tenure. 

3. Payment of interest on a monthly basis and repayment of the principal loan amount at the end of the loan tenure. 

1. Rebates: Several lenders offer the option of discount on the prevailing interest rate on the loan against gold if the borrower repays the interest regularly. This rebate can be 1% - 2% off on the original rate of interest. 

Benefits of Taking a Gold Loan

Some of the main benefits of availing a gold loan are mentioned below: 

1. The loan is disbursed fast. 

1. Borrowing a gold loan requires minimal documentation.

1. In certain cases, prepayment charges will not be levied. 

1. Gold loans are usually offered at a lower rate of interest than a personal loan. 

Types of Gold Accepted for a Gold Loan

If you are planning to apply for a gold loan, it is important to know what kind of gold you can pledge. Read on to know more about it

✅ Items Accepted as Collateral for Gold Loans

❌ Items Not Accepted for Gold Loans

💡 Tip: For the best loan value, make sure your gold is hallmarked and meets purity standards.

Eligibility Criteria for a Gold Loan

The eligibility criteria to apply for a gold loan varies from lender to lender. If you are planning to apply for a gold loan, it is advisable that you check with your lender for the specific eligibility criteria. However, the general eligibility parameters considered by lenders are as given below: 

1. Age of the Applicant - 18 years and above
2. Security to be Pledged - Gold ornaments or articles
3. Total Carats of Gold that can be Pledged - 18 carats or above
4. Other Criteria - Applicant must be creditworthy

What are the Documents Required for a Gold Loan?

Generally, the following documents have to be provided by the borrower in order to avail the gold loan:

1. Duly-filled application form
2. Passport sized photographs
3. Identity proof
4. Address Proof
5. Signature Proof
6. Form 60 or PAN card
7. Proof of age
8. Post-loan disbursement documents, if any.

How to Apply for a Gold Loan Online?

Follow the steps given below to apply for a gold loan online: 

Step 1: You will have to visit the lender’s official website. 

Step 2: Check for the ‘Gold Loan’ section. Usually, it is present under the loan products offered by the lender. 

Step 3: Click on the ‘Apply Now’ button present on the gold loan page. 

Step 4: Enter all the required details and upload all the required documents. 

Step 5: Click on ‘Submit’, to submit the form. 

Once your application is verified, your gold loan will be sanctioned.

How to Apply for a Gold Loan Offline?

Follow the steps given below to apply for a gold loan offline: 

Step 1: You need to visit the lender’s nearest branch. 

Step 2: You can ask the representative present there for a gold loan form. 

Step 3: Fill in the form with all the required details along with the required documents. 

Step 4: Submit the form to the bank representative. 

Once your loan application is processed, you will receive the gold amount.

Compare Gold Loans from Top Banks in India

The gold loan interest rates offered by some of the prominent banks in the country are as listed below: 

Note: The interest rates mentioned above are applicable as of 12 September 2025 and are subject to change at the discretion of the lender. 

Important Things to Consider When Taking a Gold Loan

Listed below are a few factors which you should consider before applying for a gold loan:

1. Loan Amount: When you are borrowing a gold loan, the sanctioned loan amount depends on various factors such as the cost of gold on that day, lender’s minimum and maximum loan limit, lenders terms and conditions, etc. That is why, if you need a specific loan amount, you must ensure that the gold you provide is sufficient in value and falls within the limits set by the lender. 
2. Rate of Interest: When compared to an unsecured personal loan, the interest rate charged for a gold loan is less, since the borrower is providing collateral. However, the interest rate charged for a gold loan varies from lender to lender, and it is in your best interest to compare the interest rates charged by different lenders to get the best deal.
3. Applicable Charges: In addition to the interest rate, lenders may levy various a number of other charges such as the processing fee, documentation fee, appraiser fee, payment default fee, loan overdue fee, etc. These charges, cumulatively, can increase the total cost of the loan. Thus, ensure that you take the charges levied by the lender into account before applying for a gold loan.
4. Tenure of the Loan: The repayment tenure for gold loans can ranges between 6 months up to 48 months. Therefore, you should make sure to take your repayment ability into consideration and opt for a gold loan with a suitable loan tenure.
   
5. Eligibility Criteria: To increase the chances of your loan application getting approved, you should check the lender's eligibility criteria before applying for the loan.

1. Credibility of the Lender: There are a number of banks and financial institutions that offer gold loans as part of their product portfolio. Before submitting an application to a particular lender, make sure that you check how credible the lender is. 

You should, thus, check the safety measures that are undertaken by the lender to keep your assets safe, online reviews, customer service channels offered, etc. 

1. Repayment Schedule: The repayment schedule for gold loans is quite flexible. Based on the lender that you choose, you may be able to make repayments in the form of EMIs, pay the principal and the interest at the end of the policy term, or pay the interest on a monthly basis and pay the principal at the completion of the policy term. 

Therefore, you should consider which repayment structure suits you best and choose the lender accordingly. 

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