A Gold Loan is a secured loan where you pledge your gold jewellery or ornaments to get funds without selling your gold. It can be a practical option when you need money quickly for medical expenses, education, business needs, home repair, travel, repayment support, or any short-term financial requirement. Since this is asset-backed financing, lenders may process it faster than many unsecured loans.
With Buddy Loan, you can explore a loan against gold through a simple digital journey and compare options from lending partners. The final loan amount depends on the purity, net weight, market value, and lender’s valuation of your pledged gold. 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 10.90% p.a.
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 | Apply Online |
| Central Bank of India | 7% onwards | Up to ₹40 Lakh | Up to 12 Months | 0.125% – 0.50% + GST | Apply Now |
| Bank of India | 8.36% onwards | Up to ₹30 Lakh | Up to 12 Months | ₹250 – ₹1,500 + GST | Apply Now |
| ICICI Bank | 8.55% onwards | Up to ₹2 crore | 6 months to 36 months | Up to 2% + GST | Apply Now |
| Canara Bank | 8.75% onwards | Up to ₹35 lakh | 6 months to 4 months | Up to to 0.50% + GST | Apply Now |
| SBI | 8.75% onwards | Up to ₹50 lakh | Up to 36 months | Up to 0.50% + GST | Apply Now |
| Union Bank of India | 8.85% onwards | Up to ₹35 Lakh | Up to 12 Months | Up to 0.50% + GST | Apply Now |
| HDFC Bank | 9.10% onwards | Up to ₹50 lakh | 3 months to 24 months | Up to 1% + GST | Apply Now |
| Punjab National Bank | 9.25% onwards | Up to ₹25 Lakh | Up to 12 Months | Up to 0.50% + GST | Apply Now |
| Bank of Baroda | 9.40% onwards | Up to ₹50 lakh | 12 months to 36 months | Up to to 0.50% + GST | Apply Now |
| Axis Bank | 9.75% onwards | Up to ₹40 lakh | 6 months to 36 months | Up to to 0.50% + GST | Apply Now |
| IDFC First Bank | 9.99% onwards | Up to ₹1 Crore | Up to 12 Months | Up to 1% + GST | Apply Now |
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 | 10.90% onwards | ₹1,500 to ₹5 Crore | 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 to 12 months | As Per Lender |
| Bajaj Finance | 10% onwards | ₹15,000 to ₹2 lakhs | Up to 12 months | Up to 1% + GST |
| Poonawalla Fincorp | 11.00% onwards | Up to ₹50 Lakh | Up to 12 months | As Per Lender |
| Shriram Finance | 12.00% onwards | ₹5,000 to ₹2 Crore | Up to 12 months | Up to 1% + GST |
Note: The interest rates mentioned are subject to change. Do visit the website for more information.
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Gold Loan Features & Benefits
Let’s go through the features and benefits of a gold loan from below:
High Loan Value
Receive maximum value for your pledged gold.
Minimum ROI
Pay lower interest compared to many other loan options.
No Credit Score Required
Approval is not dependent on your credit score.
Quick Disbursal
Get money immediately after gold evaluation.
Secure Gold Storage
Your gold is stored safely and securely.
Flexible Tenure Options
Choose from short-term and long-term repayment plans.
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
Different borrowers may receive different Gold Loan interest rates even from the same lender. This happens because lenders assess the pledged gold, loan amount, repayment tenure, scheme type, borrower profile, and market conditions before finalising the offer.
- Loan-to-Value Ratio: The loan-to-value ratio shows how much loan you receive compared to the value of your pledged gold. A higher LTV may increase lender risk and can affect pricing.
- Gold Purity: Lenders usually accept gold jewellery between 18 and 22 carats. Higher purity and higher net weight can improve gold valuation loan eligibility.
- Gold Weight and Market Rate: The loan amount is linked to the net weight of gold and the current reference gold price. Stones, beads, and non-gold parts are excluded from valuation.
- Loan Tenure: Short-term gold loan schemes may have a different rate from longer-tenure EMI or overdraft-based products.
- Repayment Type: EMI, bullet repayment, interest-only repayment, and overdraft options may carry different pricing.
- Borrower Profile: Although a Gold Loan is secured, some lenders may still check credit history, existing obligations, banking relationship, or income stability.
- Lender Policy: Banks and NBFCs follow different internal pricing models, scheme structures, branch processes, and charge schedules.
- Market Conditions: Interest-rate movement, gold price fluctuation, and regulatory changes can affect lender pricing.
To get a low-interest gold loan, compare lender offers, choose a practical loan amount, keep tenure short if possible, and understand the full cost before accepting the loan.
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Eligibility Criteria For A Gold Loan
Gold Loan eligibility is usually simpler than unsecured loan eligibility because the loan is backed by pledged gold. However, lenders still verify the borrower’s identity, ownership of gold, gold purity, valuation, and basic repayment ability.
- Age: Most lenders allow applicants aged 18 years and above. Some lenders may set an upper age limit, depending on policy.
- Citizenship: The applicant should usually be an Indian resident. Some lenders may allow NRI applicants under specific schemes.
- Gold ownership: The borrower should be the rightful owner of the pledged gold ornaments or jewellery.
- Gold purity: Lenders commonly accept gold ornaments with purity between 18 and 22 carats. Some may accept eligible bank-issued gold coins up to a specified limit.
- Collateral type: Gold jewellery, ornaments, and eligible coins may be accepted. Primary gold, bars, bullion, or gold-backed financial products are generally not accepted for standard consumer Gold Loan schemes.
- Borrower profile: Salaried employees, self-employed individuals, traders, farmers, pensioners, homemakers, and business owners may apply, subject to lender policy.
- KYC compliance: PAN, Aadhaar, address proof, and other officially valid documents may be required.
Note: Meeting eligibility criteria does not guarantee approval. The final loan amount is confirmed only after the lender physically verifies gold weight, purity, ownership, and applicable LTV norms.
Gold Loan EMI Calculator
A Gold Loan EMI calculator helps you estimate the monthly repayment before you apply. You can enter the loan amount, interest rate, tenure, and repayment type to understand the approximate EMI or interest payable.
Your Amortization Schedule (Yearly/Monthly)
This is useful because a Gold Loan may be repaid in different ways. Some borrowers choose regular EMI repayment, while others prefer interest-only or bullet repayment. A calculator helps compare gold loan EMI options and choose a plan that matches your cash flow.
- Loan amount: The amount sanctioned against your gold jewellery.
- Interest rate: The annual or monthly rate offered by the lender.
- Tenure: The period for which you borrow the funds.
- Repayment type: EMI, bullet repayment, interest-only repayment, or overdraft, depending on lender options.
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Documents Required for a Gold Loan
The documents required for a Gold Loan are usually basic because the loan is secured against pledged gold. However, document requirements can vary by lender, loan amount, KYC status, borrower type, and regulatory checks.
Here is the general list of gold loan documents required:
Identity Proof:
- Passport
- PAN Card
- Aadhaar Card
- Voter’s ID Card
- Driving Licence
- NREGA Job Card, if accepted by the lender
Income Proof:
- Salary slips, if requested
- Bank statements, if requested
- ITR, if applicable
- Form 16, if applicable
Address Proof:
- Aadhaar Card
- Ration Card
- Passport
- Bank account statement
- Voter’s ID Card
- Telephone bill, electricity bill, or water bill
Additionally, documents like a recent passport-size photograph, gold ownership declaration, any document requested by the lender during KYC or valuation, can aid in a successful loan application process
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Tips Before Applying for a Gold Loan
Before you apply for a Gold Loan, check both the value of your gold and the terms of the loan. A quick disbursal offer is useful only when the repayment plan, charges, and pledged gold safety are clear.
| Do’s | Don’ts |
| Check your credit score and repayment history before applying, even though the loan is secured by gold. | Don’t ignore your credit profile completely. Defaults on a Gold Loan can still affect future borrowing. |
| Compare lenders, interest rates, processing charges, valuation method, and repayment options. | Don’t rush into the first offer just because it promises fast disbursal. |
| Read the loan agreement, Key Fact Statement, auction terms, and foreclosure conditions carefully. | Don’t sign the agreement without understanding charges, due dates, and default consequences. |
| Keep identity proof, address proof, PAN, Aadhaar, and photographs ready before application. | Don’t submit incorrect or outdated documents, as this can delay approval. |
| Ask how your gold will be valued, weighed, stored, and insured during the loan tenure. | Don’t rely only on your personal estimate of the gold value. |
| Use a Gold Loan EMI calculator to estimate repayment before accepting the loan. | Don’t borrow more than you need or more than you can repay comfortably. |
| Maintain clear ownership records for the gold ornaments you pledge. | Don’t pledge disputed gold or ornaments with unclear ownership. |
Also check the lender’s branch network, customer support, repayment channels, and process for releasing pledged gold after closure. This is important for a secure gold financing experience.
Steps to Apply for a Gold Loan
You can apply for a Gold Loan through Buddy Loan by starting the application online. The platform helps you begin the process digitally and connect with available lending options. The final gold valuation and pledge process may require lender-side verification or branch/representative support.
- Step 1: Visit buddyloan.com or download the Buddy Loan app on Android or iOS.
- Step 2: Open the Gold Loan application page and enter your mobile number.
- Step 3: Verify your number with OTP and enter your basic details.
- Step 4: Enter the required loan amount and your email address.
- Step 5: Choose your employment type, salary mode, and income details, if required.
- Step 6: Enter personal details such as full name, PAN, date of birth, gender, and address.
- Step 7: Submit the application to check eligible options.
- Step 8: Review available lender terms, rate, tenure, processing fee, and repayment options.
- Step 9: Complete lender-side KYC, gold valuation, and pledge formalities.
- Step 10: After approval, the sanctioned amount is disbursed as per lender process.
For faster processing, keep your gold jewellery, PAN, Aadhaar, address proof, and bank details ready. If you want a digital gold loan process, check whether the lender supports online initiation, branch appointment, doorstep assistance, or app-based loan tracking.
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Gold Loan Repayment
Gold Loan repayment is flexible because lenders may offer different repayment methods based on the product. Choose the repayment plan based on your income flow, loan amount, tenure, and ability to close the loan on time.
- Regular EMI repayment: You repay both principal and interest through fixed monthly instalments. This is useful if you want structured repayment.
- Interest-only repayment: You pay interest during the loan tenure and repay the principal at the end. This may help if you need lower monthly outflow.
- Bullet repayment: You repay the full principal and interest together at the end of the tenure. This can work for short-term gold loan needs if you expect funds later.
- Partial prepayment: You repay part of the outstanding loan before maturity to reduce interest cost or release part of the pledged gold, subject to lender policy.
- Foreclosure: You close the full loan before maturity by paying all outstanding dues. Many lenders allow this with nil or limited charges, depending on timing and scheme.
- Overdraft repayment: If the loan is offered as an overdraft, you may repay and withdraw within the sanctioned limit, subject to terms.
Missing repayment can lead to penal charges, notices, credit score impact, and eventually auction of pledged gold. Always track the due date and repay on time to protect both your gold and your credit profile.
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