Availing a gold loan in India is a very simple process. As gold is an asset that is present in most Indian households, individuals opt for a gold loan when in need of funds for a financial emergency. Since gold loans are very common, the process to avail one is very easy and effortless. Also, since gold loan is a secured loan, the interest rates for the loan are very low in comparison to unsecured loans.

Procedure to take a gold loan:

1. Walk into your nearest lender’s branch with the gold coins or gold jewellery that you want to pledge for the gold loan

2. Fill in the gold loan application form and turn in the gold

3. The gold is then assessed and about 60% to 70% of the gold’s market value is released as the loan amount

4. You then repay the loan in monthly instalments

5. The gold is kept safely and given back to the customer once the loan is repaid in full

Documents needed for a gold loan

1. ID proof

2. Address proof

ID and Address proof can be shown through the following documents:

  • Passport
  • Diving License
  • Voter's ID Card
  • Aadhaar Card
  • PAN (Permanent Account Number) Card or
  • Form 60

To apply for a gold loan, click here.