Skip to content

Gold Loan

    I have read, understood and hereby accept the customized Term & Condition for LoanNow in relation to collection of information.

    Gold Loan Key Features

    Loan Amount Up to Rs. 1 Crore (With Income Proof)
    Gold Loan Interest Rate 7.25% per annum
    Gold Loan Per Gram Rate Per Gram Today is ₹ 5,219
    Processing Fee 1.50% of the Principal Loan Amount
    Prepayment Charges 2%+GST (Within 3 Months), 0 (After 3 months)
    Repayment Tenure 3 Months to 24 Months
    Repayment Scheme Bullet Payment Scheme, Overdraft Scheme

    Gold is one of the greatest loved and praised metals in India. Purchasing and gifting gold is an old custom of our way of life. Nonetheless, the supplier of Advance Against Gold has adjusted the condition of illicit relationships of ways people utilize this metal. These days, people buy gold to vanquish budgetary issues in life.

    Gold Loan Interest Rate, Fees and Charges

    HDFC Gold Loan Interest Rate

    7.00% per annum

    Processing Fee

    1.50% of the Principal Loan Amount

    Prepayment/Foreclosure Charges

    2%+GST (Within 3 Months), 0 (After 3 months)

    Valuation Fee

    Rs 250 for a loan up to Rs 1.5 lacs and Rs 500 for a loan over and above Rs 1.5 lacs

    Late Repayment Charges

    2% p.a. + Applicable rate of interest.

    Renewal Processing Fees

    Rs 350 + GST


    What is a Gold Loan?

    Gold Advance is the fastest creating monetary assistance in the financial business. The more significant part of individuals has gold adornments which are kept in the bank storage spaces or at home. Subsequently, Credit against Gold gives an open door for individuals to release the value of this valuable metal by profiting a gold advance against it.
    Also, Gold Advance Financing cost is very sensible and lesser rather than different administrations like an individual advance or home advance. Additionally, the cycle is simple and bother free. The candidate needs to put gold adornments in the bank in return for the measure of advance. At the point when the candidate reimburses the advance, the bank restores the gold adornments to the client in a similar structure. There is a ton of banking and non-banking organizations wherein a client can connect for a Gold Loan.

    *In request to get cash at the solace of your home, you have to fill in the above structure and let us remove your worry of profiting an Advance Against Gold.

    India has roughly 10% of the total gold capital of the whole world. The explanation is that most Indians have gold trimmings. Credit given against Gold is assistance that encourages individuals to get cash against their Gold Decorations. The strategy for benefiting a Gold Advance is straightforward.

    How does Gold Loan work?

    • The candidate needs to ensure gold gems to the moneylender in return for the credit sum. After you carry your adornments to the bank, the in-house gems valuer looks at your gold gems regarding weight and purity.
    • Then, as per the value of gold, the banks gives the advance searchers cash equivalent to roughly 70%-75% of the estimation of the promised gold.
    • Now, the bank has full ownership of your gold gems until the full reimbursement of the advance amount.
    • Finally, when you do reimburse the full measure of advance, the bank will restore the gold in a similar structure to the customer.

    It is the finished process of the administration of Credit against Gold. Consequently, the Archives required are very insignificant as the bank is anxious about the quality and amount of gold. 

    Gold Loan Features

    • It is wholly made sure about the advance, which makes the pace of intrigue a lot of lower when contrasted with different kinds of loans.
    • For farming purposes, gold credits, the rate of interest can drop to as low as 8%.
    • The least reports expected to benefit a gold advance are personality evidence and address proofs.
    • The advance gets dispensed around inside a couple of hours.

    What is Gold loan interest?

    Loan Against Gold is help that gives its clients cash at the most sensible pace of premium. Whenever contrasted with different administrations like Individual Advance and Home Advance, Advance Against Gold Loan cost is significantly less and sensible. Overall, it begins at 9.99% per annum and can reach up to 24% per annum. Various Banks and NBFC’s gives diverse loan fee to the customers.

    How to calculate gold loan interest rate?

    The rate of Interest is the sum which is valued on the measure of credit. The Gold Credit Financing cost typically relies upon the components referenced below:

    • Internal/Outside Customer: If the advance searchers have a record in the bank from where they wish to profit the advance, at that point, such clients are known as inside clients. Inward clients are given a markdown on the pace of intrigue valued by the applicant.
    • Amount of Loan: The measure of credit is the most significant factor that decides the pace of intrigue that will be forced on the candidate. The Gold Credit Financing cost is higher for advances with lesser sums. In this way, the more prominent the measure of credit, the lesser is the Pace of Interest.
    • LTV Proportion (Advance to Esteem Ratio) – Additionally, loaning associations charge a higher pace of enthusiasm on the Advance against Gold with a high LTV proportion. In this manner, the higher the LTV of the gold gems, the higher is the Pace of Intrigue charged by the applicant.


    On what factors does the Gold Loan Amount depend?

    The measure of credit administered relies on basically two factors:

    • The Amount of Gold: first and foremost, the heaviness of gold is one of the chief factors that choose the measure of the advance paid to the client. The weight is estimated in the wake of taking away the heaviness of the stones(if any) in gems. Higher the amount of gold more prominent is the sum that can be given to the customer.

    *Note: Minimum 10 grams of gold is needed for loan approval. 

    • Quality of Gold: Another factor that decides the credit sum is the nature of gold. The immaculateness ought to be between 18 Carat to 22 Carat. Thus, the better is the immaculateness of gold, the more prominent is the measure of advance that can be passed.

    What are different Gold Loan schemes?

    The banks give various frameworks based on the motivation behind benefiting a credit. Coming up next are the ventures that banks give to the clients ready to benefit an Advance Against Gold.

    • Non-Farming Advance against Gold: most importantly, all the credit searchers who won’t use the sum for horticultural exercises are equipped for this plan. All individuals including Salaried, Housewives, Independently employed, Understudies, ladies who need to benefit a Credit Against Gold fall beneath this classification. There are diverse reimbursement choices gave to the clients like Term Advance, EMI Office and Overdraft facility.
    • Agricultural Gold Loan: This is a sort of Credit against Gold that is offered uniquely to ranchers who need to use the cash for the farming activities. This administration is given to the ranchers at a diminished pace of interest.

    Also, the focal thought of this framework is to give account to shoppers in overseeing crop creation costs or to put the resources into united horticultural activities. To profit an agrarian Gold Advance, one ought to have confirmation of cultivating as verification of horticultural land.

    What are the different gold loan repayment schemes?

    There are three offered approaches to reimburse the advance sum administered by the bank.

    • Bullet Repayment: Most individuals lean toward this choice with regards to reimbursement of the Credit against Gold. In this sort of administration, a candidate needs to pay financing cost all through the residency of the advance. Subsequently, the total sum must be given toward the finish of the credit residency. However, this alternative is introduced to the clients applying for momentary advances. The loan fee is reimbursed consistently by EMI’s.
    • Overdraft Facility: Next, this is a sort of framework that is perceived among the independently employed individuals. As individuals having a business have fluctuating cash necessities. Utilizing this administration, one can pull back cash as per their necessities. That is, the candidate can decide the sum from the complete credit sum consumed for which they have to pay intrigue. Subsequently, the intrigue is actualized to the sum that is taken out by the client. At long last, the client additionally has a decision to restore the credit following the finishing of the advance tenure.
    • EMI Facility: Also, this is an alternate plan that clients can pick for the pay of the Advance against Gold. In this specific alternative, a fixed sum is determined, and the candidate needs to pay that month to month. This worth establishes an aspect of the total sum and the loan cost. This plan is becoming well known among people.

    Gold Loan Per Gram

    When intending to profit off the administration of Gold Advance, the underlying thing that strikes a chord of an individual is the measure of advance that will be consumed on per gram of gold. By and large, loaning associations give Rs. 2450 to Rs. 2580 on per gram of gold. Be that as it may, it again changes as per the virtue of the gold.

    Who can apply for a gold loan?

    • Firstly, the gold must be for the sake of the candidate or one of the family members.
    • Secondly, the candidate ought to be an Indian citizen.
    • Thirdly, the age ought to be in the middle of 18 years to 70 years (at the hour of credit maturity).
    • Lastly, the bank isn’t worried about the business status of the candidate. Subsequently, salaried, independently employed, housewives, understudies, anybody can request a Credit against Gold.

    Gold Loan Eligibility Criteria

    Certain conditions are needed to be fulfilled to benefit an advance against gold:

    • The candidate probably accomplished at any rate of 18 years of age.
    • The individual ought to have its gold adornments or gems that can be pledged.
    • The gold to be sworn must be 18 carats or above.
    • The candidate must have an excellent CIBIL score.


    18-70 years of age



    Employment Status

    Salaried, Self-Employed

    Gold Quality

    Minimum 18 Carats

    What are the documents required for gold loan?


    2 Passport Size

    Identity Proof

    Aadhar Card, Passport, PAN Card, etc. (Only 1 is required)

    Residence Proof

    Aadhar Card, Driving License, Ration Card, etc. In the case of Rented House then the rent agreement or water/electricity bills for the last three months can be considered. (Only 1 is required)

    Does CIBIL score matter in the gold loan?

    No, the banks don’t check the CIBIL Score of a person to affirm of a gold credit. Advance Against Gold is made sure about advance help; consequently, the bank isn’t worried about the reimbursement record of an individual. Since if the candidate neglects to reimburse the credit, the banks can fulfil the advance sum by the gold decorations that they have in their possession.

    Why should one apply for a gold loan?

    • Excellent Availability: Initially, Credit against gold is made sure about an advance supplier. Therefore, the preparing of this advance is brief because the monetary organization is extensively worried about the quality and weight of the gold.
    • Low rate of Interest: In assessment to contributions like individual advances, the Advance Against Gold has the base financing cost as banks hold wellbeing contrary to the loan.
    • Negligible dispossessions prices: By and large, banks do now no longer have any prepayment costs; notwithstanding, a couple of banks can rate a punishment of nearly 1%.
    • Safety of Ornaments: The gems is extra secure with the banks due to the severe wellbeing In the financial foundations that are less at homes.
    • No capability of Credit Score: As that is made sure about the advance, this way, the candidate does now no longer should fear around horrible advance repayment history.
    • Income-proof not required: The income of a candidate isn’t generally trouble for profiting an Advance Against Gold since it relies upon significantly at the weight and nature of gold to be had with the applicant.
    • No advance handling prices: Another advantage is that the candidate does now no longer should pay more for this supplier because the endorsement depends upon the benefit of spared as safety.
    • Flexible tenure: In expansion to various preferences, the candidate can choose the residency of the advance steady with their necessities and needs.
    • Only rate of interest: Lastly, the candidate has the decision to pay the necessary amount on the stop of the residency and simplest the premium each month.

    Gold Loan EMI Calculator

    It is essential to know the sum that one needs to pay every month to the bank. In this way, you have a decision to decide the EMI before profiting a credit. You can do so rapidly and without any problem. Click beneath and get the opportunity to distinguish the measure of the EMI you should keep up monthly.

    Use the EMI CALCULATOR to ascertain your payable EMI Sums in advance.

    Rate of Interest
    6 months
    1 Yr
    2 Yrs
    3 Yrs
    7.00% 17008 8652 4477 3088
    8.00% 17058 8699 4523 3134
    8.50% 17082 8722 4546 3157
    9.00% 17107 8745 4568 3180
    9.50% 17131 8678 4591 3203
    10.00% 17156 8791 4614 3227
    10.50% 17181 8815 4637 3250
    11.00% 17205 8838 4661 3274
    11.50% 17230 8861 4684 3298
    12.00% 17254 8885 4707 3321
    12.50% 17279 8908 4731 3345
    13.00% 17304 8932 4754 3369
    13.50% 17329 8955 4778 3393
    14.00% 17354 8979 4801 3418
    14.50% 17378 9002 4825 3442
    15.00% 17403 9026 4845 3466


    Why gold loan instead of a personal or business loan?

    Now, any individual who needs prompt account must think why Credit Against Gold over Close to Advance home? Different individuals in the nation have a low financial assessment or lower reimbursement capacity. Helpless reimbursement limit of an individual may allude to the month to month pay of the individual which might be frail from the perspective of the bank.

    That is, the bank may assume that the individual will be not able to pay the advance on schedule. Moneylenders, for the most part, don’t provide Personal Loan or Business Loan in such cases. It is the principle motivation behind why Advance Against Gold is the most appropriate choice for these individuals. All that the individual needs to do is give basic personality check and the gold as security to the bank. Additionally, Gold Credit Loan fee is significantly less rather than other money-related services.

    Why will banks provide a loan to a persona with poor credit?

    Banks awards credits against gold to individuals with horrible instalment history. The explanation is, in this administration, gold is given as security to the bank. The ladies are sincerely associated with gold. It encourages the borrower to reimburse the advance as fast as possible.
    Hence, the bank is guaranteed that the credit will be reimbursed on schedule. If the client neglects to repay the measure of advance, the bank isn’t at any misfortune as the adornments are seized by banks to recuperate the measure of loan.

    FAQs About Gold Loan

    • What is Gold Loan?

    The gold credit, otherwise called ‘Advance Against Gold’ is made sure about the advance that an individual can undoubtedly benefit by holding their gold adornments as guarantee security with the bank. In contrast to different sorts of made sure about advances, similar to vehicle credits or home advances, a gold advance can be used for any objective.

    • How does Gold Loan work?

    Loan Against gold is straightforward just as easy to benefit. The bank gives you cash against your gold Gems. The sum relies on gold weight.

    • How much Gold Loan can I get per gram?

    Depending on the immaculateness of your gold, banks permits gold advance between Rs. 1880 to Rs. 2700 on per gram of gold.

    • How to pay the Gold loan online?

    You have a decision to pay a gold credit online through online reimbursement applications.

    • Gold Loan is secured or not?

    Yes, Advance Against Gold falls under the classification of made sure about an advance because the candidate needs to put their gold adornments into the bank’s storage as security or as collateral.

    • How to calculate the gold loan interest rate formula?

    The Gold advance financing cost recipe relies upon a wide range of elements which are; advance sum, advance residency, nature of gold, terms with the loaning bank, and advance to esteem proportion. Various sorts of banks figure the pace of premium differently.

    • Which Bank is best for gold loan?

    HDFC Bank is presently offering the best gold advance administrations in India. Starting with the low paces of premium, HDFC Bank offers a few additional comforts like individual storage for your gold adornments, same-day dispensing of the advance sum, and the most significant LTV proportion to name a few.

    • What happens if a gold loan is not paid?

    Not paying your gold advance will end in a decrease in your FICO rating, making it intense to profit an advance in future and will likewise make you subject to confront lawful activities by your bank. These lawful activities may include arraignment under the law, additional charges and fines, seizure and offer of your gold.

    You should consistently reimburse the advance on schedule, and if on the off chance that you can’t do as such because of some explanation, at that point you ought to tell your moneylender of the equivalent and request relief.

    • How to repay the loan against gold?

    An advance against gold can be effectively reimbursed in the given manners. Ordinary EMI choice in which the EMIs joins both the head and intrigue sum. You can besides reimburse just the intrigue sum as EMI of your advance, and afterwards, the principal sum can be repaid in full at the hour of maturity.

    Anyone can likewise make an incomplete installation of the intrigue and chief sum as and when they can. Another reimbursement determination that banks award is projectile reimbursement; in this, you need to reimburse the entire sum, including both the head and the enthusiasm toward the finish of the credit’s term.