Gold Loan

Applying for a gold loan is very straightforward and simple. You can just walk in to your chosen lender’s branch with the required documents – ID proof, address proof, and passport size photograph. Your gold will be valued and the disbursal will be done on the same day if everything is found in order.

It is very straightforward to obtain a gold loan from SBI. The documentation is minimal and hassle-free. The maximum loan amount approved is Rs.20 lakhs by pledge of gold ornaments including bank-issued gold coins. In order to be eligible for SBI gold loan, you need to be the bank's existing customer / bank’s employee / pensioner / and must be able to demonstrate a stable source of income. You must also be able to satisfy the minimum

How much gold you can borrow varies from lender to lender and the purity of the gold pledged.  Gold accepted as collateral should be of 18k purity, 22k purity or 24k purity. Typically you can get up to 60-70% of the value of the gold you have pledged.However each bank or NBFC has their own policies regarding disbursal of loan, and the loan amount disbursed is solely under the discretion of the lender.

A gold loan can be secured by pledging your gold ornaments and bank-issued coins as collateral. Since the banks have your gold as security, sometimes they do not check your credit score. Individuals having no credit history or bad credit history can opt for this loan, as the documentation process is generally minimal, and the loan application is processed fairly quickly. Your

Gold loans are secured loans, meaning that you take out a loan by pledging your gold—including your jewelry, ornaments and bank-issued coins—as collateral. The bank or lender holds your gold as security in case you default. Gold loans generally have lower rates of interest compared to other loans (like personal loans) because the banks are safeguarded against default.