Get Instant maximum funds for your Gold at Loan Bazaar

What is a Gold Loan?

A gold loan is a secured financing option where you pledge your gold jewelry, coins, or bars as collateral to obtain immediate funds. Unlike personal loans that require extensive credit checks, gold loans are approved based on the value of your gold assets, making them one of the fastest and most accessible credit options available today.

Key Highlights:

• Get 75-90% of your gold’s market value as the loan amount
• Interest rates start at 9.0% p.a. – significantly cheaper than personal and business loans.
• No income proof or credit score required – ideal for all borrowers
• Funds are disbursed within 30 minutes to 2 hours, in most cases
• Flexible repayment options include EMIs, bullet payments, or partial prepayments

Gold Loan Interest Rates Comparison 2025:

Gold loan interest rates vary across lenders, and using tools like a gold loan interest calculator or gold rate calculator can help estimate your repayment amount. The gold loan interest rate all bank comparison is essential to choose the most affordable option. Interest rates typically depend on the tenure selection and the gold weight pledged, with shorter tenures and higher pledged amounts often attracting lower rates. Always compare offers before applying to ensure you get the best deal.

Eligibility criteria for a gold loan

Gold loans offer a smart alternative for those who may not qualify for conventional loans. At Loan Bazaar, the eligibility criteria are simple and straightforward:

• You must be an Indian citizen
• Between 21 to 65 years of age (at the time of loan maturity)
• Owner of gold jewelry or ornaments meeting purity standards

The best part is that there are no credit score checks or complex eligibility requirements – your gold serves as security, making the process quick and hassle-free.

Since the loan is secured against your gold asset, lenders face lower risk, translating to easier approval for borrowers. However, it’s important to remember that if repayments aren’t agreed upon, the lender may need to auction the pledged gold to recover the outstanding amount.

Documents necessary for a gold loan application

Documents required for a gold loan application are as follows:

• Identity Proof: Aadhaar, PAN, Voter ID, Passport
• Address Proof: Utility bill, Driving License, Rent Agreement
• Passport-size Photographs
• Gold Purity Certificate (if available)

What is the process of securing a gold loan?

The process of getting a gold loan is relatively easier than securing other types of loans. It includes the following steps:

• Step 1 – Visit nearby branch:
  Visit the nearest branch of a financial institution or lender that offers gold loan services.
• Step 2 – Gold deposit & document submission:
  You deposit your gold items and submit the required documents with the lender. The lender assesses both the quality and quantity of the gold to determine its value based on the current market price of gold.
• Step 3 – Evaluation:
  Your gold ornaments will be evaluated in your presence to calculate the maximum loan amount. The ornament’s purity, weight, and current market price determine the loan amount.
• Step 4 – Document verification:
  The lender will verify the submitted paperwork. Unlike other loans, a gold loan requires minimal documentation and does not involve heavy paperwork. A basic KYC (know your customer) process and documents like identity proof and address proof are required.
• Step 5 – Loan agreement:
  A loan agreement will be prepared, outlining the loan terms, including interest rate, tenure, repayment schedule, and late payment penalties. You should read it carefully before signing.
• Step 6 – Loan disbursal:
  Once the verification is complete and the loan agreement is signed, the lender will then approve the gold loan and disburse the loan amount.
• Step 7 – Repayment:
  You must repay the gold loan amount as per the loan terms in the agreement.
• Step 8 – Lender returns your gold:
  As per the loan agreement, the lender will return your gold items once you have repaid the loan on time

How is the market value of gold determined?

Gold is a key player in international trade. While money value fluctuates, the value of gold has never dipped below in its 3,000-year history.

Many factors determine loan interest rates. A few of them are listed below:

1. Local production and demand for gold
2. Inflationary rates
3. The government’s gold reserve
4. Import and interest rates
5. Taxes
6. Levies
7. Global demand for gold

Gold value is so volatile because of several factors that affect it. To know the current gold loan rate, you can check out our gold loan calculator.