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Of Appraised Gold Value


Processing Fee


Best Rate



  • Minimum loan - 10,000/-
  • Maximum loan - 20 lakhs
  • Loan up to 75% of appraised gold value
  • Safe custody of your gold ornaments


  • Interest rate - 14-16% simple interest(lower for higher loan amounts)
  • Processing fee - 1% of amount sanctioned(lower for higher loan amounts)

Documents Required

  • Application form with 2 photographs
  • ID proof (any one) - PAN,Passport,Aadhar,Voter ID,Driver's license
  • Address proof (any one) - Passport,Aadhar, Voter ID, Driver's license,Ration card
  • Processing fee cheque

Of Appraised Gold Value


Processing Fee


Best Rate



  • Minimum loan - 10,000/-
  • Maximum loan - 10 lakhs
  • Swift - Cash in Hand or account in hours
  • Simple - Easy Documentation, Competitive & attractive interest rates
  • Secure - Gold valued and sealed in presence of client


  • Interest rate - 13.5% - 15.5%
  • Processing fee - up to 1%

Documents Required

  • Application form with 1 photograph
  • ID proof - PAN,Form 60/61,Passport, Aadhar,Voter ID,Driver's license
  • Address proof (any one) - Passport,Aadhar, Voter ID, Driver's license,Ration card
  • Signature proof
  • For loan amount 10 lakhs,
    • - Salaried - Latest 3 month salary slips
    • - Self-employed – Latest 2 years ITR
    • - Bank Statement


  • Minimum loan amount is RS 20,000 (Pan India)


  • Interest rate – 12% ROI may differ as if ticket size is big it may reduce as well
  • Processing fees – Nil, Foreclosure 1%

Documents Required

  • Passport (Not expired)
  • Driving Licence (Not expired)
  • Voter’s ID card
  • Aadhaar Card
  • PAN Card (Along with any of the above address proof)

Of Appraised Gold Value


Processing Fee


Best Rate


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What is a gold loan?

When a customer pledges gold (including jewelry, ornaments and bank-issued coins) as collateral for taking out a loan, it is known as a gold loan. The lender uses the gold as security against payment default. The customer can get a loan amount that is a certain percentage of the value of the gold that has been pledged.

A gold loan is often considered a good option because it is a simple application process and s characterised by quick sanctions and disbursal if approved.

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When should I apply for a gold loan?

A gold loan is a good option if you are in need of money for immediate personal expenses and want to pay it back over a short period. These expenses could include for conducting a wedding or for paying for a child's education or for covering emergency medical expenses or for undertaking home renovation or even for going on a vacation - in short, there is no restriction on how you can use the loan money and what to spend it on.

It is also important that you have a good track record of making repayments when applying for a gold loan. You should be willing and able to repay the loan in full by the due date, otherwise you run the risk of losing your family jewellery as well as causing your credit score to drop. This will make it difficult to be approved for loans in the future.

Who is eligible for a gold loan?

You need to be a major (21 years or older) to apply for a gold loan. The jewellery you are providing as collateral should be of at least 18 carat purity or higher. Jewellery of anything less than 18K gold is not generally accepted. There is no other requirement for applying for a gold loan.

What are the advantages of a gold loan?

It is a quick process: In India, gold loans are some of the quickest loans to be sanctioned as the banks have your gold as security in case of default. In many cases, you could walk out of the lenders office with the loan amount. The loan can be approved, over the counter, in a matter of minutes or a few hours. The loan amounts can range from just Rs.1000 (depending if you live in rural area) to Rs. 1 crore. The minimum and maximum amount lent varies according to the lender.

Quick disbursal: Many lenders can have your gold valued quickly and sanction the loan immediately, after verification of the purity and value of the gold. Unlike home or auto loans, a gold loan application does not require to go through multiple levels of approval.

Minimal documentation required: Since you are providing your gold as collateral, banks do not need the extensive documentation or long decision making process unlike in the case of a home loan or personal loan. With many lenders, all you need is one piece of photo ID and one piece of address proof, photographs and signature proof. The ID and residence proof documents include ration card, voter ID, driver's license, passport or Aadhaar card among others.

Another advantage of a gold loan is that you are not required to submit a salary certificate since your gold is used as collateral. So, even if you are currently unemployed or do not have a good credit score, you will still be eligible for this kind of loan. However, it is possible that for loans above a certain amount, some lenders might ask for a salary certificate.

Safe way to utilize an idle asset: Instead of storing your gold in a locker or at home, you can use it to raise money. Gold is a valuable asset that lies idly stored most of the time. At the same time, when you use your gold to get a loan, it will be physically safe with your lender during the loan period. You do not run any extra safety risk by using gold as collateral.

Lower interest rates: In general, interest rates on these loans are lower than on personal loans since the lenders have your gold as collateral. In addition, with some lenders, you may not have to pay a penalty on pre-payment of the loan.

What are the disadvantages of a gold loan?

Emotional issue: Gold as an asset has emotional value in India since it is largely in the form of family jewellery. Providing gold as a collateral means that you run the risk of losing your family jewelry in case you are unable to repay the loan. This can cause undue mental and emotional pressure not just on the borrower but the entire family.

Quality of lender: There are several NBFCs in the country who offer attractive terms for these loans. However, some of them could be poorly run and could possibly shut down without notice. It is very important to study the various lenders and choose one that has a good reputation. In addition to these NBFCs, several nationalized and private banks offer these loans.

What are the interest rates on a gold loan?

The interest rates on a gold loan can vary depending on the amount you have borrowed. In general, they are relatively lower than other kinds of loans (like personal loans) since they are secured by the gold you have deposited with them.

The interest rate also varies depending on how much the loan amount is as a percentage of the total value of the gold pledged. The interest rates are lower when the loan amount is not more than 50-60% of the total value of the gold pledged. However, if the amount borrowed is high as compared to the value of the gold, the interest rate will be correspondingly higher. For example, if you pledge Rs.1,00,000 worth of jewellery and borrow an amount of Rs.50,000 you will get a better ( lower) interest rate than if you pledge the same value of gold but want to borrow Rs.70,000.

How safe is my gold when I pledge it against a loan?

In general, your gold is safe with the bank/NBFC that you have pledged it with. Of course, this depends on the quality and reputation of the lender. It is very important to make sure that you only borrow from reputed lenders. Many lenders will keep your gold secure in fire and burglary-proof safety vaults with electronic surveillance. Your gold can also be insured by the lender. Once again, all these safeguards depend on the lender, with each lender having their own ways of keeping your gold safe. You can enquire about their security measures when applying for a loan so that you are comfortable with the precautions being taken to keep your gold safe.

Is there any restriction on how I can use the money from a gold loan?

No, there is no limitation on how you can spend the loan money. You are free to use it in any way you wish and for any purpose. In this way, it is similar to a personal loan.

What is the tenure of a gold loan?

Gold loans are short-term loans and the repayment period can range from one month to a few years. Each lender has their own range of loan periods. Gold loans are suitable for people who are in need of money for immediate expenses and expect to be able to pay it back in the short term. This is unlike a home loan that can have a decades-long repayment period.

What are the fees on a gold loan?

Again this depends on the lender. Some will charge a processing fee, while others do not. This fee is usually a percentage of the value of the loan. There is also a fee charged for undertaking the valuation of the gold. Other fees could include a foreclosure charge if the loan is closed before the tenure is over; or a late payment fee which is in the form of added penal interest rate that is charged over and above the existing interest rate; a renewal fee could be charged if the loan is renewed beyond the original period; as well as other statutory government duties and taxes that need to be paid.

Do I need to be an existing customer of a bank to avail of a gold loan?

Some banks may require you to be an existing customer to avail of certain benefits of a gold loan. However, there are many other banks do not require you to be a customer in order to apply for a gold loan. Reputed NBFCs are another option in case you are looking for a gold loan outside your regular bank.

Do I need a guarantor for a gold loan?

No, you do not need a guarantor for a gold loan. Your gold is used as collateral in case of default.

How is the loan disbursed?

The method of disbursal varies with the location (rural or urban area), the loan amount, and other factors. The disbursal may be in the form of cash, demand draft, a Funds Transfer (if you have a bank account with the lender), NEFT or RTGS ( if you have an account in another bank).

How do I apply for a gold loan?

You can apply on the bank or NBFC's website (if the option is available) and complete the application process online. Alternatively, you can walk into a branch that offers a gold loan facility and complete the transaction in person. Remember that not all branches of a bank might have the facility to offer a gold loan. Check which branches of the bank offer this facility before you walk in with your jewellery.

Can I prepay my loan in part or in full? Will there be a penalty?

Different lenders will have different policies on the prepayment of the loan. Some lenders may charge interest if the loan is paid before a minimum number of days before the due date. Some may give you the option to make a partial repayment and take back the equivalent value of the pledged gold. You may only have to pay interest on the balance principal amount. Others lenders may release the gold only on full repayment of the loan.

What happens if I cannot pay off the loan by the due date?

The policy on defaulting customers varies from lender to lender. In general, you will be charged interest for the time overdue - this interest rate may be higher than the rate you are paying for the loan. If you persevere with defaulting on your loan payment, then you will be sent a notice informing you of how much time you have to clear your obligations before the lender sells/auctions the gold to recover your payment.

How do I choose a lender for taking out a gold loan?

You need to be careful about who you approach for a loan. It is safer to borrow from a nationalized bank or from any of the leading private banks or well-known NBFCs. Many of them offer gold loans and you can be assured of the safety of your jewellery when it is in their custody. Some reputed NBFCs are well known for specializing in gold loans and you could consider them as an equally good option.

However, there may be some other NBFCs who might offer good terms on the gold loan but might not be run well or on a financially sound footing. Some of them may close down without notice, taking your jewelry with them. You run the risk of losing all your jewelry with no immediate hope of recovery. Gold has an emotional and social angle in India since it is associated with family jewellery and so it is best to do your research and stick with the well-known banks and reputed NBFCs.

If you are in need of money and you think a gold loan might be the best option, dvweek can put you in touch with banks and other reputed financial companies that best suit your requirements.

Customer Reviews

Overall Rating: 5.0 / 5.0 (2 Reviews)

14 Feb 2017

"Kudos to dvweek! I was urgently in need of money when I came across this website. I had gold with which I wanted to secure a gold loan. But I was not ready to go to just any Pawnbrokers and entrust them with my precious belongings. My friend recommended dvweek and I decided to approach them. One word for my experience—emotional. I got my application approved quickly at a time when I was declined credit by everyone around me. It was a personal crisis when I decided to pledge my gold. And I am very glad I did. I fully trusted dvweek. Got the lowest interest rates and the disbursal of loan amount very quickly. I am very much happy by the services rendered by the dvweek team. "

14 Feb 2017

"CreditMantri makes everything so easy! Great customer service, minimal documentation, easy comparison of all kinds of loan offers is what sets dvweek apart from the others. For one, I am very much impressed by their promptness in responding to queries. Their website is user-friendly and with just a few clicks, I was ready with my profile. Got a couple of loan offers for which I was eligible for, and got the documentation done speedily enough. I got one of the lowest interest rate on my gold loan. Thanks for making everything so much easier, dvweek!"

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