Gold Loans In India - All you need to know

gold loan

In India, the widespread ownership of gold has led to the emergence of gold loans as a financial lifeline for people needing quick capital. Among all the options for borrowing, gold loans are by far the most convenient and flexible option. They can be used for instantly funding medical expenses, business ventures, or expenses related to education. This article will primarily focus on providing all relevant knowledge encompassing gold loans in India. Let’s start by knowing what gold loans exactly are.

Gold Loan Meaning

Gold-backed loans or loans against gold, commonly referred to as gold loans, are secured loans that allow individuals to borrow money by keeping their gold or gold jewelry as collateral. In India, nearly all financial institutions, including banks, specialized companies of gold, as well as NBFCs (Non-Banking Financial Companies), allow individuals to opt for a loan against gold.

While opting for a gold loan, the borrower presents their gold asset in the form of coins, bullion, or jewelry to serve as collateral. The lender then evaluates the quantity and quality of the gold to determine its value, based on which the loan amount is fixed.

Sapna aapka. Gold Loan Humara
Apply Now

What Are The Documents Required To Apply For Gold Loans?

Applying for gold loans requires specific documents. The requirement of the documents may vary slightly depending on the jurisdiction and the lender. But in common, the documents that are necessary while opting for gold loans are listed below:

  • Proof Of Identity:

    A valid identity proof is essential, be it your Voter ID, passport, driving license, or Aadhaar card. This ensures the lender about your identity.
  • Proof Of Current Address:

    Along with identity proof, your address proof is also required. For this, you can provide any of the above-mentioned proofs of identity like a passport, Aadhaar card, Voter ID, or driving license.
  • Ownership Proof:

    You must ensure that you are the rightful owner of your gold assets, for which documents supporting your ownership are essential. This can be the receipts of purchases, invoices, or any other relevant documents.

Eligibility For Gold Loan:

The borrower must meet several eligibility criteria to opt for gold loans successfully. Some of the most common eligibility criteria for a gold loan that are more or less demanded by all lenders are listed below:

  • The applicant should be an Indian resident.
  • Must be at least 21 years of age. The maximum age limit varied from one lender to another.
  • The individual must be the legal owner of the gold asset.

Anyone meeting all the above criteria can opt for a gold loan without hassle. As gold loans are secured loans, it doesn’t require the evaluation of the credit score or creditworthiness of the borrower.

Procedure Involved In Acquiring A Gold Loan

The procedure involved in acquiring a gold loan is as follows:

  • Research different lenders and select one that seems suitable to you
  • Visit the lender along with the gold assets against which you intend to opt for the loan
  • Fill in the application form and submit all the required documents
  • The lender will evaluate the gold assets and determine the loan amount
  • After determining the amount, the lender will issue a loan agreement
  • On agreeing with the loan terms and conditions, the lender will disburse the determined amount.
Sapna aapka. Gold Loan Humara
Apply Now


Therefore it is apparent that gold loans are a convenient way of liquidating your assets in the form of gold. However, make sure that all the documents and information provided are correct to make the process steady and successful. Although numerous lenders are available in the market, choose the one that offers the utmost flexibility and convenient repayment methods.