{"id":6831,"date":"2022-02-09T15:19:36","date_gmt":"2022-02-09T09:49:36","guid":{"rendered":"https:\/\/www.tickertape.in\/blog\/?p=6831"},"modified":"2022-05-25T18:20:32","modified_gmt":"2022-05-25T12:50:32","slug":"how-to-take-a-loan-against-gold","status":"publish","type":"post","link":"https:\/\/www.tickertape.in\/blog\/how-to-take-a-loan-against-gold\/","title":{"rendered":"Gold Loan: 6 Ways on How To Apply for Loan Against Gold Online"},"content":{"rendered":"\n<p><a href=\"https:\/\/www.tickertape.in\/blog\/the-golden-behaviour-during-crisis\/\">Gold<\/a> has always been a favourite metal for many. According to reports by the World Gold Council, in the quarter ending on 30 September 2021, gold demand increased 47% on a yearly basis compared to the corresponding quarter in 2020. While <a href=\"https:\/\/www.tickertape.in\/blog\/gold-will-it-soon-glitter-like-never-beforeg\/?utm_source=blog&amp;utm_medium=article\">gold<\/a> demand in India was 123.9 tonnes pre-pandemic in the September 2019 quarter, it shrunk to 94.6 tonnes in September 2020. However, over the last year, the demand surged and was recorded at 139.1 tonnes.&nbsp;<\/p>\n\n\n\n<p>There are many reasons why people prefer investing in gold, such as ornamental uses, gifting, traditional and religious offerings, asset creation, and also as an investment to hedge against inflation and <a href=\"https:\/\/www.tickertape.in\/blog\/volatility\/?utm_source=blog&amp;utm_medium=article\">market volatility<\/a>.&nbsp;<\/p>\n\n\n\n<p>But did you know that if you have gold, you can avail a loan against it?&nbsp;Do you know how? Let us find out.<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_66_1 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title \" >Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.tickertape.in\/blog\/how-to-take-a-loan-against-gold\/#What-is-a-gold-loan\" title=\"What is a gold loan?\">What is a gold loan?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.tickertape.in\/blog\/how-to-take-a-loan-against-gold\/#Salient-features-of-gold-loan\" title=\"Salient features of gold loan\">Salient features of gold loan<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.tickertape.in\/blog\/how-to-take-a-loan-against-gold\/#How-to-avail-a-loan-against-gold\" title=\"How to avail a loan against gold?\">How to avail a loan against gold?<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.tickertape.in\/blog\/how-to-take-a-loan-against-gold\/#Check-your-eligibility-parameters\" title=\"Check your eligibility parameters\">Check your eligibility parameters<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/www.tickertape.in\/blog\/how-to-take-a-loan-against-gold\/#Keep-your-documents-handy\" title=\"Keep your documents handy\">Keep your documents handy<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/www.tickertape.in\/blog\/how-to-take-a-loan-against-gold\/#Compare-lenders-and-choose-one\" title=\"Compare lenders and choose one\">Compare lenders and choose one<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/www.tickertape.in\/blog\/how-to-take-a-loan-against-gold\/#Get-your-gold-valued-by-the-lender\" title=\"Get your gold valued by the lender\">Get your gold valued by the lender<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/www.tickertape.in\/blog\/how-to-take-a-loan-against-gold\/#Complete-the-application-process\" title=\"Complete the application process\">Complete the application process<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/www.tickertape.in\/blog\/how-to-take-a-loan-against-gold\/#Pay-the-processing-fee\" title=\"Pay the processing fee\">Pay the processing fee<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/www.tickertape.in\/blog\/how-to-take-a-loan-against-gold\/#Things-to-remember-when-availing-a-gold-loan\" title=\"Things to remember when availing a gold loan\">Things to remember when availing a gold loan<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/www.tickertape.in\/blog\/how-to-take-a-loan-against-gold\/#The-bottom-line\" title=\"The bottom line\">The bottom line<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\" id=\"what\"><span class=\"ez-toc-section\" id=\"What-is-a-gold-loan\"><\/span>What is a gold loan?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>A gold loan is a secured personal loan that is offered against the mortgage of gold. If you own gold ornaments, bullion or jewellery, you can mortgage the same with a lender and avail a loan against the aggregate value of the mortgaged gold. Essentially, your capital assets in the form of gold become the collateral for <a href=\"https:\/\/www.tickertape.in\/blog\/things-to-keep-in-mind-while-applying-for-a-loan\/?utm_source=blog&amp;utm_medium=article\">availing loans<\/a>.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"loan\"><span class=\"ez-toc-section\" id=\"Salient-features-of-gold-loan\"><\/span>Salient features of gold loan<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Here are a few salient features of this loan:&nbsp;<\/p>\n\n\n\n<ul><li>The loan is multipurpose, i.e, you can use it for any type of financial need.<\/li><li>You can apply for the loan online and avail funds at the earliest.<\/li><li>The lender evaluates the value of the gold mortgaged. Thereafter, the loan amount is determined based on this valuation.<\/li><li>The interest rates are lower since your loan is backed by gold which the lender can sell off to realise the outstanding loan amount in the case of a default.<\/li><li>Many lenders also allow a free <a href=\"https:\/\/www.tickertape.in\/blog\/what-is-insurance-coverage\/?utm_source=blog&amp;utm_medium=article\">insurance cover<\/a> on the gold held as a mortgage so that your assets are secured.<\/li><li>The lender holds the gold in safe custody until the loan is repaid. Once the loan account is closed, the mortgaged gold is returned back to the borrower.<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"gold\"><span class=\"ez-toc-section\" id=\"How-to-avail-a-loan-against-gold\"><\/span>How to avail a loan against gold?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>If you have gold assets and you want funds for personal or commercial use, you can mortgage such assets and avail of a loan against them. To do so, here\u2019s how you can go about it:<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Check-your-eligibility-parameters\"><\/span>Check your eligibility parameters<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>The first thing to do to avail of a gold loan is to check whether you meet the lender\u2019s eligibility criteria. Different lenders have different eligibility parameters but the basic requirements remain the same. These include the following:<\/p>\n\n\n\n<p><strong>Age:<\/strong> You should be aged at least 18 yrs and above. Many lenders allow loans only if the borrowers are at least 23 yrs old.<br><strong>Income:<\/strong> You should have a source of regular and steady monthly income. The minimum income limit varies across lenders.<br><strong><a href=\"https:\/\/www.tickertape.in\/blog\/get-an-instant-loan-without-credit-score\/\">Credit score<\/a>:<\/strong>&nbsp;A good <a href=\"https:\/\/www.tickertape.in\/blog\/get-an-instant-loan-without-credit-score\/?utm_source=blog&amp;utm_medium=article\">credit score<\/a> is needed to avail of the gold loan. The score ranges from 700 and above.<\/p>\n\n\n\n<p>Check the eligibility parameters of the lender from whom you seek to avail the gold loan. Only if you meet the specified criteria will the loan be sanctioned.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Keep-your-documents-handy\"><\/span>Keep your documents handy<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>A set of your documents would be needed to establish and verify your age, identity, and income. Lenders usually ask for the following documents to process your loan:&nbsp;<\/p>\n\n\n\n<ul><li>Identity proof, like your voter\u2019s ID card, PAN card, Aadhaar card, passport, etc.<\/li><li>Age proof like PAN Card, Aadhaar card, birth certificate, passport, etc.<\/li><li>Address proof like utility bills, rent agreement, property documents, Aadhaar card, etc.<\/li><li>Last 3-6 months\u2019 bank statement<\/li><li>Proof of income like <a href=\"https:\/\/www.tickertape.in\/blog\/salary-slip-or-payslip\/\">salary slip<\/a>, <a href=\"https:\/\/www.tickertape.in\/blog\/what-is-form16\/\">Form 16<\/a>, audited financial statements, IT returns, etc.<\/li><\/ul>\n\n\n\n<p>Keep these documents handy so that you can submit them with your loan application to get the loan quickly.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Compare-lenders-and-choose-one\"><\/span>Compare lenders and choose one<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>There are dozens of lenders, both banks and non-banking financial companies (NBFCs), that offer gold loans. You should, thus, check the available lenders and compare their interest rates. Also, compare the loan amount that the lender is willing to sanction. Choose a lender with the lowest interest rates so that your loan is affordable. Moreover, look for a lender that offers the funds that you need.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Get-your-gold-valued-by-the-lender\"><\/span>Get your gold valued by the lender<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>After you have compared and shortlisted the best lender, you would have to get the gold valued to find out the maximum loan amount that you can avail of. So, specify the quantum of your gold assets and then get them valued. Remember, the valuation would depend on the purity of the gold that you pledge and its weight. In the case of gold jewellery, the weight of precious and semi-precious stones is not considered during evaluation. So, the better the purity and the higher the weight, the larger would be the allowed loan amount.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Complete-the-application-process\"><\/span>Complete the application process<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>You can apply for a gold loan online or offline. In either case, you would have to fill up an application form stating all your personal and financial details therein. Fill up the form, sign it, and then submit it to the lender along with all the supporting documents. The lender would process the form, verify the information and then sanction the loan after successful validation.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Pay-the-processing-fee\"><\/span>Pay the processing fee<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>You would also have to pay a processing fee when you apply for the loan. This fee is non-refundable and is paid for processing your loan application. The fee depends on your loan amount and should be paid in advance when submitting the loan application form.<\/p>\n\n\n\n<p>After the aforementioned formalities are completed, and the lender verifies your application, the loan would be sanctioned. The funds would be transferred to the registered bank account, and you can use them for your financial obligations.&nbsp;<\/p>\n\n\n\n<p>The loan is usually repaid through EMIs over the tenure you choose. You can choose a suitable tenure over which the EMIs are affordable and repay the loan.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"things\"><span class=\"ez-toc-section\" id=\"Things-to-remember-when-availing-a-gold-loan\"><\/span>Things to remember when availing a gold loan<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>While a gold loan is easily available, here are a few things that you should keep in mind when availing it:<\/p>\n\n\n\n<ul><li>There are different modes of repaying the loan, EMIs being the most popular. So, check the repayment options offered by the lender and choose a suitable mode.<\/li><li>If you miss a repayment, you would suffer additional interest costs, late payment charges, and your <a href=\"https:\/\/www.tickertape.in\/blog\/habits-that-hurt-credit-score\/\">credit score<\/a> would also be hampered.&nbsp;<\/li><li>Many lenders allow prepayment facilities that help you pay off the loan sooner.<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"The-bottom-line\"><\/span>The bottom line<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Gold, besides its value and hedging qualities, can help you avail loan against it. The same cannot be said about other <a href=\"https:\/\/www.tickertape.in\/blog\/investing-in-metals\/?utm_source=blog&amp;utm_medium=article\">metals<\/a>. It can give you funds when you need them the most with lower interest rates than <a href=\"https:\/\/www.tickertape.in\/blog\/alternatives-to-personal-loans\/\">personal loans<\/a>. Today, availing gold loans is just a matter of one click and a few formalities. Reach out to your financial planner before availing any loans.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Is applying for a gold loan an easy process? Click here to learn about the different interest rates and know the ways in which you can apply for a loan against gold online!<\/p>\n","protected":false},"author":45,"featured_media":6688,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"_lmt_disableupdate":"no","_lmt_disable":"no","footnotes":""},"categories":[8,1754],"tags":[1286,790,1287],"acf":[],"modified_by":"Neera Bhardwaj","jetpack_featured_media_url":"https:\/\/www.tickertape.in\/blog\/wp-content\/uploads\/2022\/01\/4-1.png?wsr","_links":{"self":[{"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/posts\/6831"}],"collection":[{"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/users\/45"}],"replies":[{"embeddable":true,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/comments?post=6831"}],"version-history":[{"count":4,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/posts\/6831\/revisions"}],"predecessor-version":[{"id":8810,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/posts\/6831\/revisions\/8810"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/media\/6688"}],"wp:attachment":[{"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/media?parent=6831"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/categories?post=6831"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/tags?post=6831"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}