Turn your gold into instant liquidity

A gold loan is a secured loan where you pledge your gold jewellery or coins as collateral. The lender values the gold, applies an LTV ratio, and gives you cash up to that amount. You repay with interest to get your gold back.

Eligibility = Gold weight × Purity factor × 24K gold rate × LTV ratio. For example, 50g of 22K gold at ₹7,200/g (24K) with 75% LTV gives: 50 × 0.916 × 7200 × 0.75 = ₹2,47,320.

The RBI caps the LTV ratio at 75% for NBFCs. Banks may offer up to 80%. A higher LTV means more cash but also higher risk if gold prices fall.

Karat measures gold purity. 24K is 99.9% pure, 22K is 91.6%, 20K is 83.3%, and 18K is 75%. Most jewellery is 22K. Higher purity = higher loan value per gram.

Banks charge 7–12% per annum, NBFCs 12–24%, and pawn shops 24–48%. Banks offer the lowest rates but require more documentation.

Gold loans are typically short-term: 6 to 24 months. Some lenders offer up to 36 months. Longer tenures mean more total interest.

Usually just identity proof (PAN, Aadhaar, or voter ID) and address proof. No income proof or credit score check is required. Approval is often within 30 minutes.

Usually not. Gold loans are secured by the gold itself, so lenders don't need to check your credit score. This makes them accessible even with a poor credit history.

Yes. Since the loan is secured by gold, your credit score matters less. Many lenders don't even check it. Approval is based on the gold's value.

Lenders use a touchstone test, acid test, or XRF (X-ray fluorescence) machine. XRF is the most accurate and non-destructive. The purity determines the loan value per gram.

Yes, most gold loans have no prepayment penalty. You can repay early and get your gold back. Some lenders may charge a small foreclosure fee — check first.

If you default, the lender will send notices and eventually auction your gold to recover the outstanding amount. Any surplus after the auction is returned to you, minus costs.

Yes. Gold coins and bars are often preferred because their purity (usually 24K) is known. However, some lenders only accept jewellery. Check with your lender.

You repay the loan in monthly instalments (principal + interest), like a regular loan. This is easier to budget than bullet repayment and reduces total interest.

You pay interest monthly and the full principal at maturity. This keeps monthly outgo low but requires a lump sum at the end. Total interest is higher than the EMI option.

Gold loans are not taxable income. However, if you default and the gold is auctioned, any capital gains (if the sale price exceeds the purchase price) may be taxable. Consult a tax advisor.

Yes. Many banks and NBFCs offer online gold loans with door-step gold pickup and valuation. Some even disburse funds within hours. Compare rates before choosing.

Instead of a lump-sum loan, you get a credit line against your gold. You withdraw what you need, repay, and re-withdraw. Interest is only on the amount used. Good for businesses with fluctuating needs.

There's no fixed minimum, but most lenders require at least a few grams. With 10g of 22K gold at ₹7,200/g (24K), you could get about ₹49,000 at 75% LTV.

If you default, the lender auctions your gold to recover the outstanding amount. Auctions are usually public and follow a legal process. Any surplus after recovery is returned to you.

Yes, some lenders allow it with proper authorization and identity documents. However, the loan is typically issued in the name of the gold owner. Check with your lender.

They can improve it if you repay on time, or hurt it if you default. Some lenders report gold loans to credit bureaus, others don't. Either way, repaying on time is always good.

A gold loan is borrowing against your gold, and you get it back on repayment. The Gold Monetization Scheme lets you deposit gold with a bank and earn interest, but you don't get the same gold back.

Usually 15–30 minutes for branch visits, or a few hours for online gold loans with door-step pickup. It's one of the fastest loan types available.

Yes. Gold loans have no end-use restrictions. You can use the money for business, education, medical emergencies, or anything else. The lender only cares about repayment.

If gold prices rise, you can ask your lender to increase your loan amount against the same gold. Some lenders offer this automatically; others require a fresh application.

Yes, when taken from a regulated bank or NBFC. Your gold is stored in secure vaults and returned on repayment. Always read the loan agreement and keep a copy.

At 12% per annum over 12 months with EMIs, total interest is about ₹6,600. At 18%, it's about ₹10,000. Use this calculator to see exact numbers for your case.

Choose EMIs if you want lower total interest and can manage monthly payments. Choose bullet repayment if you need the lowest monthly outgo and can arrange a lump sum at maturity.

Some lenders disburse in cash, but most require a bank account for disbursement and repayment. Having a bank account makes the process faster and safer.

Minimum: usually ₹5,000–10,000. Maximum: depends on your gold value, but can go up to ₹1 crore or more at banks. There's no fixed upper limit other than your gold's value.

Gold loans are secured (gold is collateral), so rates are lower and approval is faster. Personal loans are unsecured, so rates are higher and approval depends on your credit score.

Most gold loans have no prepayment penalty. Some lenders may charge a small fee. Check your loan agreement before prepaying.

If gold prices fall significantly, your LTV may exceed the allowed limit. The lender may ask you to repay part of the loan or pledge more gold. This is called a margin call.

Yes, but the stones are removed before valuation, and only the gold weight is counted. The stones are returned to you with the gold on repayment.

1 tola = 11.66 grams. 1 sovereign = 8 grams. 1 gram = 0.0857 tola. Most gold loans in India are quoted in grams, but tola is still used in some regions.

Yes — it's one of the fastest ways to raise money. Approval takes minutes, no credit check is needed, and you get your gold back on repayment. Just compare rates before choosing a lender.