Gold Loan-All you want to know about Loan Against Gold

Gold Loan has become very famous when the price of Gold has decreased rapidly. For your short term fund requirement, this loan is a really very good option.  Many nationalized banks, private bank and financial companies provide gold loans. In case of emergency of cash crunch at the time of Marriage of your Children, Admission of your Children in a college or school or any similar occasion you should prefer to get loan gold.

What is a Gold Loan?

As the name is evident, Loan against gold is called Gold Loan. In order to avail this loan you do need any income proof, healthy CIBIL score or too many documents like other loans personal loan or loan against property . Even unemployed and not working people or housewives could get this loan very easily.

What are the retirements to get a Gold Loan?

The simple KYC documents like your PAN, Adhar, along with ID & Address Proof are sufficient documents. For verification of signature your PAN or Bank passbook may be asked. You have to simply pledge your gold at your nearest bank or financial company which deals with it. They will provide you upto 70 to 80 percent value amount as loan against your gold.

Before you approach your lender, check the market price of gold for that particular day. Check your gold purchase receipt for details of your jewelry or gold bars or coins. Like weight of your gold, percentage of purity in carrot etc.

Pros and Cons of taking Gold Loan


  1. It is easy and simple to avail
  2. No credit history is required for it
  3. No income proof is required
  4. 70% to 80% of total value of gold is given as loan
  5. Lower interest rate of 12-13% percent is charged compared to personal loan or other loan
  6. Easy repayment option. You only pay the interest till when you borrow it
  7. Entire loan amount can be returned without any penalty of foreclosure in one shot
  8. Less time required at the time or loan processing
  9. Lower processing fees
  10. Best loan option in category


  1. Avail this loan when are sure to return this loan
  2. You gold is at risk if loan repayment is not done timely
  3. Deal with trusted lenders only as the gold may be
  4. This is not good loan for longer duration
  5. If you are emotionally attached with your jewelry then repayment at the earliest is needed
  6. It is not considered good for the status of family in society so deal with this loan confidentially

Considering all the above facts and details, we conclude that this is the best loan for short term period. The loan interest must be paid on time till you borrow this loan. Our loan experts advise to go for this as per your loan requirement, repayment capacity. You should do some comparison of gold loan being offered by various public and private lenders.

One thought on “Gold Loan-All you want to know about Loan Against Gold

  • March 12, 2018 at 12:56 pm

    Admiring the commitment you put into your blog and in depth information you
    present. It’s great to come across a blog every once in a while that isn’t the same out of date rehashed information. Great read!


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