🪙 Gold Loan
Turn Your Gold into Instant Cash
Need urgent funds? A Gold Loan is one of the quickest and easiest ways to raise money without selling your gold. Whether it’s for a medical emergency, education, business, or personal need — you can pledge your gold ornaments and get instant cash in hand.
At GrowMyRupee, we help you understand how gold loans work in India so you can make a safe and informed borrowing decision.
🏦 What is a Gold Loan?
A Gold Loan is a secured loan where you pledge your gold jewellery or ornaments (usually 18–24 karat) as collateral to get a loan. The lender keeps your gold safely and returns it once you repay the loan with interest.
It’s a great short-term financing option — especially for those who don’t have a strong credit score or income proof.
💰 Key Features of Gold Loans
✅ Loan amount: ₹1,000 to ₹2 crores (depending on gold weight & purity)
✅ Tenure: From 3 months to 3 years
✅ Interest rate: Typically 7% to 16% p.a.
✅ Quick processing — get funds within a few hours
✅ No income or credit score required
✅ Minimal documentation
✅ Gold is securely stored and insured
📍 Popular Gold Loan Providers in India
Muthoot Finance
Manappuram Finance
HDFC Bank
ICICI Bank
Axis Bank
India Post (India Post Payments Bank)
State Bank of India (SBI)
Federal Bank
🧾 Eligibility Criteria
Indian citizen aged 18 and above
Ownership of gold jewellery/ornaments (not gold bars or coins above a certain weight)
No income proof or CIBIL score required in most cases
📄 Documents Required
Aadhaar Card
PAN Card
Passport-size photo
In some cases: address proof like Voter ID, Driving License, Utility Bill
🧠 How is Loan Amount Decided?
The loan amount depends on:
Gold weight & purity (in karats)
LTV (Loan-to-Value) ratio set by RBI — currently up to 75% of gold’s market value
For example:
If your gold’s value is ₹1,00,000, you may get a loan up to ₹75,000.
💡 Tips Before Taking a Gold Loan
✔️ Compare interest rates and processing fees across lenders
✔️ Choose short tenure if you can repay quickly — lower overall cost
✔️ Always repay on time to avoid loss of pledged gold
✔️ Understand the lender’s auction policy in case of default
✔️ Ask if part-payment or pre-closure is allowed without penalty
❗ Watch Out For:
⚠️ High interest in case of NBFCs (check all charges upfront)
⚠️ Defaulting can lead to auction of your gold
⚠️ Some lenders may charge valuation or insurance fee
🔁 Repayment Options
Bullet repayment (pay interest monthly, principal at end)
Regular EMIs
Flexible repayment plans offered by some NBFCs
🧠 FAQs
Q: Can I take multiple gold loans?
Yes, if you have additional gold. But it’s wise to repay existing loans first.
Q: Will my gold be safe?
Yes. Banks and NBFCs store pledged gold in secure vaults and insure it.
Q: What happens if I can’t repay the loan?
After repeated reminders, the lender can auction your gold to recover dues.
Q: Can I repay early?
Yes. Many lenders allow prepayment without penalty — check before signing.
🏁 Final Word
A Gold Loan is a smart way to meet urgent financial needs without selling your assets. It’s quick, less paperwork, and often cheaper than personal loans.
At GrowMyRupee, we guide you in comparing lenders, calculating interest, and choosing the safest gold loan option — so you can borrow with confidence.
📩 Need help choosing the right lender or understanding charges?
Visit our Contact Us page — our team is here to assist you!