Gold Loan

Your gold loan eligibility is defined by the checks mentioned below. You need to fulfil these to get your gold loan approved quickly -

• Ownership of Gold: The primary requirement for gold loan eligibility is the possession of physical gold. They can be in the form of jewellery with at least 18-carat purity or pure gold coins issued by a bank. Every bank has minimum weight criteria for the gold as well. A gold valuer is appointed by the banks to check the purity of the gold jewellery that you will pledge with the bank as collateral.
• Age criteria: Age is one of the major gold loan eligibility criteria. You should be of Indian origin with a minimum age of 18 years (at the time of onboarding). A minor (one below the age of 18 years) is not eligible for a gold loan. The maximum age limit is 75 years (at the time of onboarding), as per the bank policy.
• Identity and address verification: You need to provide valid identity and address proof to your bank to be eligible for a gold loan. The KYC check can be done by submitting documents such as PAN, Aadhaar, voter ID, passport etc. as well as your recent photographs. No other document is needed to be eligible for a gold loan.
• Loan amount determination: The loan amount depends on the value of your pledged gold. Banks appoint a gold valuer to evaluate the purity and weight. Based on the gold's prevalent market rate and the net weight, the value of your gold is calculated. The banks then calculate the Loan-to-Value or LTV ratio, which gives you the loan amount as a percentage of the gold market value. Additionally, your income assessment and credit worthiness may be considered to determine your repayment capacity.
• Credit history consideration: A key advantage of gold loans is their reliance on collateral, which is your gold asset. Hence, it makes your credit history less significant. Gold loan is possible gold assets to pledge. Gold Loan interest rates & eligibility remain unaffected by your credit history in such cases.
• Loan tenure and its impact: Gold Loans are generally for your short-term needs, thus, they typically have repayment periods spanning from a 6 months to 3 years. You must ensure timely repayment of loan within the specified period to avoid penalties or potential loss of your pledged gold.

Customer Eligibility

• Individuals owning gold jewellery or coins issued by banks only are eligible for a gold loan.
• Credit history i.e. CIBIL checks are required to get a gold loan.

Collateral Eligibility

• Gold jewellery, or coins issued by banks are accepted as collateral for a gold loan.
• Gold purity of at least 18 karat is accepted for gold loan.
• Bank-issued gold coins are accepted as collateral, but there is a maximum limit of 50 grams per borrower.