- Secured Loan: Backed by gold collateral.
- Quick Processing: Fast approval and disbursement.
- Flexible Loan Amount : Based on pledged gold value.
- Instant Liquidity: Access funds quickly without selling gold.
- Lower Interest Rates: Secured nature leads to competitive rates.
- Versatile Use: No restrictions on how loan funds are used.
Eligibility Criteria
- Age: Typically, borrowers should be 18 years or older.
- Ownership: You must own the gold being pledged.
- Gold Quality: The gold should meet the lender's purity standards.
- Identification: Valid government-issued ID for identity verification.
Documents Required to Apply for Gold Loan
- Identity and signature proof
- Voter ID
- Passport
- Aadhaar Card
- Driving License
- PAN Card
- Employee Identity Card (in case of government employees)
- Address Proof
- Rent Agreement
- Bank Statement
- Voter ID Card
- Passport
- Driving License
- Telephone/Electricity/Water/Credit Card bill or Property tax.
- Two post-dated cheques for security purposes
- Passport-size photographs
Fees and Charges for Gold Loan
The fees and charges of gold loans usually vary from lender to lender and from case to case. The aforementioned table will give you a fair idea of the fees and charges related to gold loans:
Particulars
Charges
Loan Processing Fees
0.5% to 4% of loan amount
Loan Cancellation
Usually around Rs 3,000
Stamp Duty Charges
As per actuals
Legal Fees
As per actuals
Penal Charges
Usually @ 2% per month; 24% p.a.
EMI/Cheque Bounce
Around Rs 400 per bounce
Other fees and charges that lenders may levy on your personal loan include documentation charges, verification charges, duplicate statement charges, NOC certificate charges and swap.