Gold Loan

Compare Gold Loan Offers and Apply Online

Bank Name

Interest Rate

Processing Fee

Loan Amount/Tenure


9.90% - 17.00%

Axis Bank

12.50% - 17.50%

YES Bank

11.00% - 14.50%


9.00% – 19.75%

Rupeek Gold Loan

9.65% - 14.00%

IIFL Gold Loan

11.00% - 17.00%

It is an age-old belief that an investment in gold is made to provide for a rainy day. In case of the drastic need of funds, the gold would be sold or pledged with a moneylender. It is believed that the interest burden for the Gold Loan, when pledged with a money lender, would be so high that people preferred selling the gold in times of need than pledge it.

These issues have been overcome now, with a lot of players in the market providing loan against the pledge of gold at very competitive rates of interest. Gold Loan is as good as a Personal Loan with security by way of pledge of gold coins or gold ornaments or Gold Jewellery.

Gold coins bought from anywhere else other than banks are not accepted as security for the Gold Loan. Security by way of gold coins is accepted only to the extent of 50 grams. If the loan quantum required needs pledge of gold above 50 grams, then it should be by way of gold ornaments. A mix of gold coins and gold ornaments is permitted subject to the weight of the gold coins not being more than 50 grams. The Reserve Bank of India (RBI) has issued guidelines that gold coins above 50 grams should not be accepted as security for Gold Loans.

The Gold Loan does not require hard documentation. The process that the sanction of Gold Loan involves is the submission of the duly completed and signed application form followed by the appraisal of the gold by the approved appraiser of the bank/financial institution. The amount to be sanctioned depends on the value of the gold pledged.

Features And Benefits of Gold Loan

  • Interest Rates Gold Loan – Banks and other financial institutions offer lower interest rates on Gold loan compared to mortgage loans, Personal loans or unsecured business loans.
  • Money taken as Gold loan can be used for multiple purposes- No end-use binding loan taken, lenders usually don’t track, end use of the money taken as gold loan. most often borrowers take gold loan for expansion of business to personal use like marriage in family or higher education of a family member.
  • Special Scheme – Banks and other FIs, offer special schemes to farmers on gold loan like moratorium of interest payment and bullet payment options.
  • Minimum Documentation – Gold loan can be given up to certain loan amount without any financial documents of the loan applicant/s. For example, HDFC Bank offers Gold Loan up to Rs. 15 Lakh without any financial documents of borrowers.
  • No Foreclosure Charges – Leading gold loan lenders offer zero foreclosure charges after 3 months/ 3 EMIs are paid on loan.
  • Loan up to 80 percent of Valuation– Lenders offer loan up to 80 percent of the valuation of the gold, subject to purity of the gold.
  • Secured Loan –Gold loans are secured loans as the gold being offered is taken as collateral and can be taken by the lender if the loan is not paid back.
  • Short Term Loans – Generally, a lender offers it for a tenure of up to 36 months maximum.

Gold Loan Eligibility Criteria

The following are the eligibility criteria for availing a Gold Loan:

  • The applicant should be aged above 18 years
  • The applicant should have the gold of 18 to 22-carat purity to pledge for the loan. If gold coins are pledged, then the purity should be 24 carats.
  • If the loan is availed for agricultural purposes, proof of landholding should be available
  • Some of the banks/institutions insist on a stable income though most of them don’t
  • Eligible Profiles Farmers, traders, salaried, self-employed professionals or businessmen can apply for gold loans.

Gold Loan Eligibility Criteria

DocumentSalaried IndividualsSelf-Employed Individuals/Professionals
Identity ProofPAN Card/ Valid Passport/ Driving License.PAN Card/ Valid Passport/ Driving License.
Residence ProofAadhar Card/Valid Passport Copy/ Electricity Bill/ Voter ID cardAadhar Card/Valid Passport Copy/ Electricity Bill/ Voter ID card
Income Statements for Loan Above Rs. 15 Lakhs Loan Amount3 Month’s Salary Slips -Form 16/ ITRIncome Tax Returns, Computation of Income, Balance Sheet with Profit & Loss Account.
Bank Statements6 months Bank statements of Salary Account12 month’s Bank Statements of Current Account/Business Profile etc.


Why Apply For A Gold Loan With PaisaTap?

Free of Cost Services : All the financial products or services offered or provided by PaisaTap are available free of cost for its customers and one can avail them without any hesitation.

Multiple Loan Products : PaisaTap, helps you connect with lenders for Homes Loan, Home Loan Balance Transfer, Loan Against Property, Gold Loans, Auto Loans, Working Capital Loans and other financial products or Services.

Online to Offline Services : PaisaTap, offers its services online and offline – with the help of its direct teams, Sales Team, Lending Partners and Associates. PaisaTap has ability to serve you in any city of Gujarat.

Compare Loan Offers Before Applying : Before applying online for any loan, unlike other loan portals or loan comparison sites, PaisaTap helps you to understand every single detail of the loan. It helps you read complete information of the product you are interested to apply and avail. Only after you are completely satisfied with the features and benefits of the loan product you can apply online for a loan.

Special Schemes & Offers : PaisaTap, offers Special Schemes, Benefits and other advantages to its customers. 

Other Terms & Conditions : Other Terms and Conditions as per Bank and NBFCs terms, conditions and policies.