What is a Gold Loan?

Gold Loan, is the Loan which is issued to the applicant against the mortgage of gold. Any person can have access to gold loans after depositing the gold he/ she wants to deposit as a mortgage and following specific procedural steps. Gold loans has become easier and quicker.

Gold Loan Kottiyam Interest Rate

  1. ROI on Gold Loan is 10.75% and can go till 24%. 
  2. The processing fee charged is usually, and thus it is charged @ 0.85%
  3. The gold loan can be procured for a minimum period of 6 months, which can be taken up to a maximum period of 5 years.

Eligibility Criteria and Documentation required for Gold Loan

  1. Identification proof such as Passport, Voter card, or driving license.
  2. Address proof which includes electricity bill, ration card, etc.
  3. Passport, DL or any other proof with signature needs to be submitted for signature proof.
  4. Two passport size photographs are also required.
  5. The applicant should be atleast18 years old.
  6. The gold ornament submitted should be at least 18 carats or above.
  7. The gold loan can be availed by an applicant who has at least 10 grams of gold.

Charges associated with Gold Loan                                      

  1. Some of the service providers may waiver Loan, but some banks do charge a processing fee.
  2. Valuation Charge is the charges to be paid to the evaluator. Such fees are specific to the service provider. Those having in-house evaluators do not charge any extra amount for valuation.
  3. Most of the service providers charge for late payment; this usually varies from one institution to the other.
  4. The applicant should consult with the loan provider before taking the Loan. These charges could change the amount that you may finally receive and should also check for the methods of repayment  of the gold loan.

Advantages of Gold Loan

  1. The documentation required is very minimal, and so it doesn't demand any certificate to show your salary or income. Credit card history is also not required.
  2. The gold loan requires only a few documents, such as ID proof and address proof. After providing such materials, the applicant can avail the Loan.
  3. Interest rates are an attractive deal for gold loans. Usually, the interest rate varies between 12-16% per annum and is also quite as low compared to personal loans.
  4. In agricultural areas, the gold loan is available at an interest rate of only 7-8%.
  5. It is the most convenient and straightforward form of Loan because all you need to do is pledge your gold here with a bank  and you can avail up to 75% of the market value of the gold as Loan.
  6. The borrower here has the option to pay only the interest during the term of the Loan and can pay the principal amount once the term is over.
  7. The gold is 100% secure, and the Loan can be procured under 30 minutes.

How to Apply for Gold Loan?

  1. You can avail a gold loan with a single click while sitting at home. Our customer relationship manager will be providing you the service of helping you choose the right type of Loan for you.
  2. Just fill a simple form so that our customer care department can look up for your finances can check your financial status and your eligibility for the Loan that you have applied.
  3. You will be led to the right banker for more details on your Loan. The bank executives will arrive at your doorsteps to collect required documents from you.
  4. Only at the time of submission of gold you have to pay a visit to the Bank, the rest will be taken care of by the Bank's executives.

How to Calculate Gold Loan Interest Rate?

  1. Rate of Interest: It is the amount that is charged on the amount of Loan. The Gold Loan Interest Rate depends on the factors stated below:
  2. Internal/External Customer: The loan seekers who have an account in the Bank from where they want to avail the Loan, then such customers are known as internal customers. Internal customers are given a rebate on the rate of interest charged by the applicant. 
  3. Amount of Loan: The loan amount is the primary factor that decides the rate of interest that will be charged from the applicant. The Gold Loan Interest Rate is higher for loans with lesser amounts. Thus, the more the amount of credit, the lower is the Rate of Interest. 
  4. LTV Ratios: Furthermore, lending institutions charge a higher rate of interest on the gold loan with a high LTV ratio. Thus, the more the LTV of the gold jewelry, the higher is the Rate of Interest charged by the applicant.

Gold Loan EMI Calculator

It is essential to know the amount one has to pay every month to the Bank. Therefore, you have an option to estimate the EMI before availing a loan. You can do so very quickly. Just click below and get to know the amount of the EMI you will have to manage monthly..

FAQs About Gold Loan 

  1. How does  Gold Loan work?
     Loan on gold is very simple to understand. The Banks /NBFC provides you with funds against your gold ornament. The amount depends upon the gold weight.
  2.  Gold Loan is secured?
    Yes, it is essential to note that the loan on gold comes in the category of secured loans. Because in a gold loan the applicant put their gold ornaments into the bank’s locker as security or as collateral.
  3. What happens when you don’t repay a Gold Loan?
     If the borrower is unable to return the gold loan on time, then the bank is liable to sell his gold ornaments.
  4. To get a gold loan do I need a co-applicant?
     No, to avail Gold loan you don’t need any co-applicant 

Is Gold loan better than a Personal loan?


Yes, a Gold loan is better than personal Loan because in Gold Loan banks/NBFC's takes Gold ornament as well as a gold coin as collateral and in case of Personal loan it is un-secured and hence carries higher interest than a gold loan.

  1. What is the best online platform to avail gold loan?
    Dialabank is the best platform to get a loan. Dialabank provides you hassle-free process as well as the lowest interest rate in the market as compared to others.
  2. Is there any fee payable for the Gold Loan?
    Yes, you have to pay the loan processing fee (non-refundable) as well as Valuation fee.

Gold Loan Interest Rate of Different Banks - Updated on 2019

Bank 

Gold Loan Rate 

HDFC Bank

10.75%

Yes Bank 

10.85%

Axis Bank

10.90%

SBI Gold Loan

11.50%

ICICI Bank

11.75%

IIFL Gold Loan

11.75%

Allahabad Bank Gold Loan

11.75%

Muthoot Gold Loan

12.00%

Federal Bank Gold Loan

12.00%

Manappuram Gold Loan 

12.25%

IDBI Bank

12.25%

PNB Gold Loan

12.25%