Looking to apply for a gold loan? Look no further than Buddy Loan! We offer hassle-free solutions for a loan against gold in India. Unlock the power of your gold assets and enjoy our attractive gold loan interest rates starting at just 11.99% p.a. With Buddy Loan, you can easily obtain a gold loan by submitting your gold, gold ornaments/jewellery/coins as collateral. Our flexible repayment options ensure that you can repay the loan at your convenience. Experience the trusted and reliable gold loan service provided by Buddy Loan and meet your urgent cash requirements today.
Gold Loans by Top Banks in India
Experience the ultimate financial flexibility with our unbeatable gold loan deals offered by the top banks in the industry.
| Gold Loan Providers | Interest Rate (p.a.) | Loan Amount | Tenure | Processing Fee |
| HDFC Bank | 9.10% onwards | Up to ₹50 lakh | 3 months to 24 months | Up to 1% + GST |
| ICICI Bank | 8.55% onwards | Up to ₹2 crore | 6 months to 36 months | Up to 2% + GST |
| Canara Bank | 8.75% onwards | Up to ₹35 lakh | 6 months to 4 months | Up to to 0.50% + GST |
| Axis Bank | 9.75% onwards | Up to ₹40 lakh | 6 months to 36 months | Up to to 0.50% + GST |
| Bank of Baroda | 9.40% onwards | Up to ₹50 lakh | 12 months to 36 months | Up to to 0.50% + GST |
| SBI | 8.75% onwards | Up to ₹50 lakh | Up to 36 months | Up to 0.50% + GST |
Note- The interest rates mentioned are subject to change. Do visit the website for more information.
Gold Loan by Top NBFCs in India
Experience the ultimate financial flexibility with our unbeatable gold loan deals offered by the top NBFCs in the industry.
| Gold Loan Providers | Interest Rate (p.a.) | Loan Amount | Tenure | Processing Fee |
|---|---|---|---|---|
| Muthoot Finance | 12% onwards | ₹1,500 – No Limit | 7 days to 36 months | 0.50% to 2% of the loan amount |
| IIFL | 11.88% onwards | ₹3,000 onwards | Up to 24 months | Up to 3% of the loan amount |
| Manappuram Finance | 9.90% onwards | Up to ₹1.5 crore | 3 months to 12 months | ₹10 (during loan settlement) |
| Bajaj Finance | 9.50% onwards | ₹15,000 to ₹2 lakhs | Up to 12 months | Up to 0.472% of the loan amount |
Note- The interest rates mentioned are subject to change. Do visit the website for more information.
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Features and Benefits of Gold Loan
A gold loan is a secured loan in which borrowers pledge gold jewelry or ornaments as collateral to obtain funds quickly. It is commonly used to meet short-term financial needs because the process is faster and requires minimal documentation compared to unsecured loans. The following are the key features and benefits of a gold loan:
- Quick Loan Processing: Gold loans are typically approved and disbursed within a few hours because the loan is secured against gold assets.
- Minimal Documentation: Most lenders require only basic identity and address proof, simplifying the application process.
- Lower Interest Rates: Since the loan is backed by collateral, interest rates are generally lower than those of personal loans or credit cards.
- Flexible Repayment Options: Borrowers can choose from multiple repayment structures, including regular EMIs, bullet repayment, or interest-only payments.
- High Loan-to-Value Ratio: Lenders often provide a significant percentage of the gold’s market value as the loan amount, subject to regulatory limits.
- No Restriction on End Use: Funds obtained through a gold loan can be used for various purposes such as business expansion, medical emergencies, education, or personal expenses.
- Safe Storage of Gold: Pledged gold is stored securely by the lender in insured vaults during the loan tenure.
- Suitable for Individuals with Limited Credit History: Approval depends primarily on the value of the pledged gold rather than the borrower’s credit score.
- Short-Term Financing Solution: Gold loans are designed mainly for immediate or temporary financial requirements, with flexible tenure options.
- Easy Renewal and Foreclosure: Many lenders allow borrowers to renew the loan or close it early with minimal charges, depending on policy terms.
Gold Loan Interest Rates, Fees & Charges
Gold loans involve several costs, including interest rates and administrative fees that vary significantly depending on the lender and the specific loan scheme chosen.
| Type of Charge | Applicable Rates/Fees |
| Interest Rate | Typically 8.05% to 27% per annum |
| Processing Fees | Ranges from 0.15% to 2% of the loan amount (or flat fees like ₹25–₹1,000) |
| Penal/Late Payment Charges | Often, 2% to 3% per annum on the outstanding balance |
| Foreclosure/Prepayment Charges | Generally NIL for many major lenders |
| Stamp Duty | Payable as per respective state laws |
| Auction Charges | Levied in case of default, ranging from ₹460 to ₹3,500 |
Factors Affecting Gold Loan Interest Rates
There are various factors that affect your gold loan interest rates. So here are the factors that help you avail the lowest gold loan interest rate.
- Loan-to-Value (LTV) Ratio: The loan amount sanctioned relative to the value of the gold determines the risk involved for the lender. Lower LTV ratios often lead to lower gold loan interest rates.
- Gold Purity: The purity and quality of the gold being pledged as collateral can impact the interest rates. Higher-purity gold may fetch better interest rates due to its higher market value.
- Loan Tenure: The duration of the loan can influence the interest rate. Longer loan tenures may attract slightly higher interest rates compared to shorter tenures.
- Market Conditions: Fluctuations in the market and the prevailing interest rate environment can influence gold loan interest rates. Lenders may adjust rates based on prevailing economic conditions.
- Borrower’s Credit Profile: While gold loans are secured by collateral, some lenders also consider the borrower’s credit history and financial profile. A strong credit profile may result in more favourable interest rates.
Eligibility Criteria For A Gold Loan
To qualify for a gold loan, applicants must satisfy certain requirements related to their profile and the quality of the gold they intend to pledge.
- Age: Applicants must be at least 18 years old (some lenders require a range of 21 to 80 years).
- Citizenship: The borrower should generally be an Indian citizen.
- Gold Purity: The pledged gold ornaments must have a purity between 18 to 22 karats.
- Gold Coins: Some lenders allow gold coins with up to 24 karat purity, often subject to weight limits.
- Borrower Profile: Eligible individuals include salaried employees, self-employed professionals, housewives, and pensioners.
- Collateral Requirement: The borrower must physically own and pledge the gold ornaments as security against the loan.
Gold Loan EMI Calculator
Easily calculate your monthly payments for a Gold Loan with the help of a Gold Loan EMI (Equated Monthly Installment) calculator. This useful tool considers factors such as the loan amount, interest rate, and loan tenure to determine your monthly EMI. By simply entering your loan amount, loan period, interest rate, and processing fee, you can quickly calculate your EMI.
Take advantage of our Gold Loan EMI calculator and find out your monthly payment amount today.
Documents Required for a Gold Loan
Here is the general list of gold loan documents required:
Identity Proof:
- Passport
- PAN Card
- Aadhaar Card
- Voter’s ID Card
- Driving Licence
Income Proof:
- Salary Slips (last 3 months)
- Bank Statements (last 3 months)
- ITR
- Form-16
Address Proof:
- Aadhaar Card
- Ration Card, Passport
- Bank Account Statement
- Voter’s ID Card
- Telephone Bill/Electricity Bill/Water Bill
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Tips Before Applying for a Gold Loan
Now you can increase your chances of gold loan approval by following certain guidelines. Here are some essential do’s and don’ts to improve your chances of getting a gold loan:
| Do’s | Don’ts |
|---|---|
| Check your credit score: Before applying for a gold loan, it’s advisable to check your credit score. | Don’t overlook your credit score. A poor credit score may affect your loan eligibility and interest rates. |
| Research lenders: Take the time to research and compare different lenders offering gold loans. | Don’t rush into borrowing from the first lender you come across. |
| Understand loan terms: Read and understand the terms and conditions of the loan agreement. | Don’t sign the loan agreement without fully understanding its terms. |
| Prepare required documents: Gather all the necessary documents for a gold loan application. | Don’t forget to gather and organize all the required documents. |
| Appraise your gold: Get your gold jewelry or ornaments appraised by a certified gold valuer. | Don’t rely solely on your estimation of the gold’s value. |
| Calculate loan amount and EMIs: Use EMI calculators & determine the loan amount you require and the corresponding EMIs. | Don’t borrow more than you need or can comfortably repay. |
| Maintain clear ownership records: Ensure that the gold you are pledging as collateral has clear ownership records. | Don’t pledge gold with disputed ownership or unclear documentation. |
Steps to Apply for a Gold Loan
Here’s the step-by-step process that you can follow to apply for a gold loan on Buddy Loan:
- Step 1: Visit buddyloan.com or Download & install the Buddy Loan app (Android or iOS).
- Step 2: Open the Gold Loan Application Page. Provide the mobile number and enter the received OTP.
- Step 3: Specify the desired loan amount & personal email. Next, choose the Personal Loan option
- Step 4: Choose the employment type (Salaried, Self-Employed, or Student) and the salary mode (bank or cash).
- Step 5: Enter your work details (Including company name, years of service and Designation)
- Step 6: Enter your personal details (Including Full Name, PAN, address DOB & Gender)
- Step 7: Provide your communication address, and income details and Click the ‘Submit’ button.
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Gold Loan Repayment
Gold loan repayment is designed to be flexible, offering multiple options that help borrowers manage their cash flow while reclaiming their pledged gold.
- Regular Equated Monthly Installments (EMI): In this method, borrowers repay both principal and interest through fixed monthly installments over the loan tenure.
- Interest-Only Payments: Borrowers pay only the interest at regular intervals, such as monthly, quarterly, or half-yearly, and repay the principal amount at the end of the tenure.
- Bullet Repayment: The entire principal, along with accumulated interest, is paid in one lump sum at the end of the loan period.
- Partial Pre-payment: Borrowers can repay a portion of the loan at any time, which reduces the outstanding principal and lowers the overall interest burden.
- Foreclosure: This option allows borrowers to close the loan before the end of the tenure, often without any penalty charges.
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