Gold
Loan
I Want
GOLD LOAN
CREDIT CARD

Gold loan is general purpose loan usually sanctioned by Banks to borrowers by asking them to pledge their gold and gold ornaments with the Bank.

Eligibility :

Any individual who is and adult and owns gold and gold ornaments legally. There is no more eligibility requirement except that the person should be able to mortgage or pledge golds to the Banks and against the pledged gold loan amount can be disbursed to the Borrower.

Purpose :

It is all utility purpose loan and the loan amount can be used for any purpose. The banks are not interested to know what the borrower is going to do with the loan amount.

Maximum Amount :

Maximum loan amount is calculated on the basis of the value of the gold. Usually the Banks provide loan amount ranging from 70% to 90% of the gold market value.

Security :

In case of gold loan Banks do no ask for any more collateral security as the pledged gold itself plays a role of very good security as in general economic conditions the value of the gold will keep on rising.

Frequently Asked Questions :

What is Gold Loan?
Gold loan is not a loan to buy gold as it sounds to be, but a loan which can be availed from the Banks by mortgaging the Gold and gold ornaments with the Banks. This is one of the easiest ways to get a short-term loan. The bank usually gives loan to the tune of 70-90% of the Gold value.
Is proof of income be needed for a gold loan?
Usually not. Gold loan is the easiest loan that can be sanctioned by a Banks as the mortgaged loan itself serves as a good security whose value keeps on rising in a normal economic scenario.
How do Banks verify the genuineness and purity of ornaments?
Banks verify the purity of gold and its genuineness by using the following methods:
Touchstone method, Nitric Acid test and specific gravity method.
The specific gravity of 24 carat gold is 19.3.
If necessary, Banks utilize the services of a reputed jeweller in the city to verify the genuineness of the gold ornaments.
Can gold loan taken in joint names?
Gold loans can be taken in joint name and it depends on the Bank’s internal policies.
What are the precautions taken while weighing the ornaments?
The weight of all extraneous matters such as wax, string, fastening etc. as well as precious stones must be allowed for, on a liberal scale, and must be entirely ignored when ornaments containing them are being valued.
In weighing ornaments containing wax, the weight of gold ornaments should be taken in water to ascertain the actual weight of the gold contents as wax and water have same specific gravity. It must, however, be borne in mind that this test may be misleading if ornaments contain base metal. Ornaments made of brass or other base metal with a coating of gold must not be accepted and caution must be observed that such ornaments are not passed off as solid gold.