Gold loan
Gold loan — quick funds against jewellery you own
A gold loan is the fastest secured borrowing available in India. You pledge gold jewellery or coins, the lender assays the purity and weight, and funds are released against a share of the value — often the same day, with no income proof and very little weight given to your credit score. It is well suited to short-term needs. Because the gold is security, missing repayments can lead to auction, so the tenure should match a repayment you are confident of.
Why borrowers pick it
What a gold loan gives you
No income proof
The gold is the security, so most lenders do not ask for salary slips or income tax returns.
Credit score rarely matters
A thin or damaged credit file is far less of an obstacle here than with unsecured credit.
Flexible repayment
Choose regular EMIs, interest-only servicing with principal at maturity, or a single bullet repayment.
Insured storage
Pledged jewellery is kept in the lender's insured vault and returned in full on closure.
Eligibility
Who qualifies for a gold loan
Criteria differ by lender. These are the ranges our partners commonly apply — the exact rule is shown on each offer.
The applicant
- An adult applicant
- Indian resident
- Owner of the gold being pledged
- Valid KYC documents
The gold
- Jewellery of the minimum purity the lender accepts
- Bank-issued gold coins, within limits, with some lenders
- Free of any existing pledge
- Gross weight assessed net of stones and other inlay
Paperwork
Documents you will need
Keep soft copies ready before you apply — most partners complete verification digitally.
Required
- PAN card or Form 60
- Aadhaar or another accepted address proof
- Passport-size photographs
- The gold to be pledged, for assay at the branch
Sometimes asked for
- Proof of ownership for high-value items
- A second address proof for a branch outside your home city
- Bank account details for disbursal by transfer
Costs
Interest, fees and charges
The rate is only part of the cost. Read this table alongside the total payable shown on each offer.
| Charge | What lenders typically apply |
|---|---|
| Processing fee | A percentage of the loan amount or a flat fee, set by the lender |
| Interest rate | Set by the lender based on the gold and tenure |
| Valuation / assay charge | As per the lender's terms |
| Prepayment | Usually nil after a short minimum period |
| Late payment / auction notice | Penal interest on the overdue amount, as per the lender's terms |
Figures in brackets are placeholders. Final rates and fees are set by the lending partner and are disclosed in the sanction letter before you accept an offer.
FAQs
Gold loan questions, answered
How much loan can I get per gram of gold?
Lenders apply a loan-to-value ratio to the assessed value of the gold, within the ceiling RBI sets for gold loans. Only the gold content counts — stones, beads and other inlay are deducted from the gross weight.
What happens if I cannot repay a gold loan?
Interest keeps accruing, and after a notice period the lender may auction the pledged gold to recover the dues. Any surplus from the auction is returned to you. Talk to the lender before you default — most will restructure.
Is my jewellery safe?
Pledged items are sealed, stored in an insured vault and returned on repayment. Check the lender's insurance cover and storage terms in the loan agreement.
Do I need a good credit score for a gold loan?
Rarely. Because the loan is fully secured, most lenders place little weight on the score — which makes a gold loan one of the few options open to borrowers with a thin credit file.
Also compare
Other ways to borrow
Compare gold loan offers side by side
Checking offers is a soft enquiry, so your credit score is not affected.