How to get a loan against gold jewellery

With us, you can get high per-gram financing in the form of a jewel loan. When you need immediate funds, you can utilise the underlying value of your idle gold jewellery to avail of a gold loan.

You just need to follow a few simple steps to apply for a loan with ease.

Benefits of taking a loan against gold jewellery

Opting for a loan against gold jewellery offers a convenient and cost-effective way to meet your financial needs without liquidating your assets. This type of loan is not only easy to access but also comes with several borrower-friendly features that make it a preferred option during emergencies or planned expenditures.

Here are the key benefits of taking a gold loan:

• Quick disbursal: Gold loans are processed swiftly, often within a few hours, making them ideal for urgent financial requirements.
• Minimal documentation: The application process involves basic KYC documents, ensuring a smooth borrowing experience.
• Lower interest rates: Compared to unsecured loans, gold loans generally come with more affordable interest rates.
• No impact on credit score: As long as you repay on time, gold loans do not affect your credit score significantly.
• Retain asset ownership: You get back your gold ornaments once the loan is repaid, keeping your valuables intact.
• Flexible repayment options: Many lenders offer varied repayment tenures and modes, suiting your financial convenience.
• Free insurance of pledged gold: In most cases, lenders offer complimentary insurance on your gold assets while in custody.

Eligibility criteria for a gold jewellery loan

Getting a gold jewellery loan is simple, but certain eligibility conditions must be met to ensure approval. Since this is a secured loan, lenders usually keep the criteria straightforward, allowing more individuals to access funds easily.

Here are the basic gold loan eligibility criteria:

• You must be an Indian citizen
• You should be between 21 and 70 years of age
• Both salaried individuals and self-employed professionals are eligible
• The gold jewellery pledged must typically be between 18 karat to 22 karat purity, as this directly impacts the loan amount sanctioned
• Some lenders may also consider your repayment capacity before sanctioning the loan

Meeting these criteria increases your chances of availing a jewellery loan quickly. For more detailed requirements, refer to the specific lender’s gold loan eligibility criteria.

Documents required for a loan on gold ornaments

Applying for a loan on gold ornaments is a straightforward process and requires minimal paperwork. The documents are mainly used to verify your identity and address.

Here are the commonly required documents:

• KYC documents such as Aadhaar card, PAN card, Voter ID, passport, or driving licence
• Proof of address (in case it differs from your KYC document)
• Recent passport-size photographs
• Some lenders may also request income proof depending on the loan amount

Submitting these basic documents ensures a quick processing time for your loan on gold jewellery, making it a hassle-free borrowing experience.

How to get a loan on gold jewellery with quick disbursal

If you are looking for instant funds, availing a loan on gold jewellery is one of the fastest financing solutions. The application process is simple and often leads to same-day disbursal.

Start by choosing a trusted lender offering competitive rates and a transparent loan structure. Visit their branch or apply online by submitting your gold ornaments and required documents. The gold is evaluated for purity and weight, and once approved, the loan amount is disbursed—often within a few hours.

For more guidance on the process, you can read about how to get gold loan and make an informed decision. This ensures you get the funds you need without unnecessary delays.

How to apply for a jewellery gold loan

Step 1: Click on ‘APPLY’ to open our online application form.

Step 2: Enter your 10-digit mobile number and click on ‘GET OTP.’

Step 3: Submit the OTP to verify your identity.

Step 4: Select your state and city to find the branch nearest to you.

Step 5: Set up your appointment at our branch.

Once done, you will receive a call from our representative to confirm your appointment and guide you on the next steps.

How to get the best loan amount for your gold

To get the best loan amount against your gold jewellery, it is important to understand how lenders evaluate your ornaments. The loan amount is primarily based on the purity and weight of the gold, along with current market prices. Jewellery with higher purity, generally between 18 karat and 22 karat, fetches a better valuation, which can lead to a higher loan amount. Additionally, lenders exclude non-gold elements such as stones and beads during the valuation. Clean, high-purity ornaments usually receive a more favourable offer. Comparing multiple lenders is also advisable, as loan-to-value ratios and interest terms vary. Choosing a lender that offers a higher loan-to-value ratio, combined with clear terms and competitive rates, will help you maximise the amount you can borrow against your gold.

Things to consider before taking a jewel loan

Before applying for a jewel loan, there are several important factors to take into account. Start by evaluating the interest rate, repayment tenure, processing fees, and any additional charges that could affect the total cost of borrowing. The loan-to-value ratio, which determines how much money you can get against your gold, also plays a key role. It’s equally important to assess your own repayment capacity to ensure timely and stress-free repayment. Using digital tools like a jewel loan calculator can help you estimate the loan amount, tenure, and interest payable, allowing for better financial planning. Furthermore, ensure the lender is reliable, transparent, and has a good track record. Considering these points carefully will help you choose a gold loan that aligns with your financial needs and repayment ability.

Repayment options for a gold loan

When you take a gold loan, lenders usually offer several repayment options to suit different financial situations. One of the most common methods is the standard EMI, where you pay both principal and interest in monthly instalments. Some lenders offer bullet repayment, where you pay the entire loan amount, including interest, at the end of the loan tenure. There is also an interest-only option, where you pay only the interest during the loan period and the principal at maturity. In some cases, part-payment is allowed without extra charges, providing greater flexibility. Selecting the right repayment method depends on your cash flow and financial planning. Each repayment option has its own advantages, so choose one that helps you manage your finances efficiently without straining your monthly budget.

How is the value of gold jewellery determined for a loan?

The value of your gold jewellery plays a vital role in determining how much you can borrow under a gold loan. Lenders assess the purity and weight of the gold to calculate its worth. Typically, jewellery between 18 karat and 22 karat purity is eligible for higher valuation. The non-gold elements, such as stones, gems, and other decorative components, are excluded from the evaluation. Once the net gold weight is confirmed, it is multiplied by the current market price of gold to arrive at the final value. Based on this valuation, a loan-to-value ratio is applied, usually up to 75 percent, to determine the maximum loan amount. This process ensures that the loan is granted fairly, based on the actual worth of your gold ornaments.

• High loan amount: You can easily meet any planned or unplanned needs with a high-value gold loan of up to Rs. 2 crore. You can avail up to 75% of your gold’s value as the loan amount.
• Accuracy and transparency: During gold jewellery evaluation, you can rest assured of accuracy and transparency in the evaluation of your jewellery. We utilise industry-grade karat metres, so you get the right financing value for your gold.
  
• Convenient repayment: You can choose from a range of repayment options to suit your budget. You can pay interest monthly, bi-monthly, quarterly, half-yearly, or annually as per your convenience. Please note that the principal amount and pending interest, if any, will be due for payment at the time of loan maturity.
  
• Facility for partial release: Should you need a part of the pledged ornaments midway, there is an option to avail the partial release of the gold items but after you repay the equivalent amount.
  
• Prepayment options: You have the option to part-prepay or foreclose your loan account anytime before the end of the tenure at no additional cost.
  
• Free insurance of pledged gold: We offer free insurance of the pledged gold, which covers it against theft, fire, and other natural calamities, providing added protection. Your gold ornaments are kept in highly secure vaults under 24/7 surveillance.
  

Jewel loan interest rates and charges

You can get access to the necessary funds by pledging your gold jewellery and repaying the interest at competitive jewel loan interest rates.

Keep a check on the gold market rates and inflation rates to time your financing properly. Arrange all necessary documents before applying for the loan against jewellery to experience hassle-free processing of your application.