Question 1

How much gold loan can I get per gram of gold?

Accepted Answer

You can get up to 75% of your gold's market value as per RBI guidelines. For 22K gold at ₹6,000/gram, you get ₹4,500/gram loan. Banks assess purity (18K, 22K, 24K) and current gold rates. Minimum gold required is usually 10-15 grams.

Question 2

What is the interest rate for gold loans?

Accepted Answer

Gold loan interest rates range from 7% to 16% p.a. Banks offer 7-10%, while NBFCs charge 10-16%. Rates depend on loan amount, tenure, and lender. Gold loans have lower rates than personal loans because gold acts as collateral. Compare rates before applying.

Question 3

How quickly can I get a gold loan?

Accepted Answer

Gold loans are disbursed within 30 minutes to 2 hours. Process: Submit gold ornaments → Purity testing → Valuation → Paperwork → Instant disbursal. You can walk into a branch with gold and KYC documents and walk out with cash/bank transfer the same day.

Question 4

Is my gold safe with the bank during the loan period?

Accepted Answer

Yes, banks store gold in secure vaults with insurance coverage. You receive a receipt with ornament details, weight, and purity. Gold is returned in the same condition after full loan repayment. Top banks have CCTV surveillance and 24/7 security.

Question 5

What happens if I can't repay my gold loan?

Accepted Answer

If you default after the loan tenure, the bank will auction your gold to recover the loan amount. You typically get 30-90 days grace period with penalty interest. If auction proceeds exceed loan amount, you get the balance back. Always communicate with the bank if facing repayment issues.

Question 6

Can I take a gold loan on someone else's gold jewelry?

Accepted Answer

Yes, but the gold owner must be a co-applicant and provide consent. Both applicant and gold owner must sign the loan agreement. This is common for housewives using husband's gold or children using parents' gold. All parties are liable for repayment.

Question 7

What documents are required for a gold loan?

Accepted Answer

Minimal documents needed: PAN card, Aadhaar card, passport photos, and gold jewelry. No income proof required. Processing is quick with minimal paperwork. Gold ownership proof is not mandatory but helpful if valuable antique pieces.

Question 8

Can I repay my gold loan in parts or must I pay everything at once?

Accepted Answer

You can repay in parts through EMIs (equated monthly installments) or pay only interest monthly and principal at the end. Some banks offer bullet repayment (pay everything at maturity). Part-prepayment is usually allowed without penalty. Choose the option that suits your cash flow.

Lender	Interest Rate	Loan Amount	Tenure	Action
Kotak Mahindra Bank Kotak Gold Loan	10.50% - 18.00%	₹0.2L - ₹100.0L	3 - 24 months	Apply Now →
ICICI Bank ICICI Bank Gold Loan	10.50% - 17.00%	₹0.1L - ₹100.0L	3 - 36 months	Apply Now →
Axis Bank Axis Bank Gold Loan	11.50% - 17.00%	₹0.3L - ₹100.0L	3 - 36 months	Apply Now →

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