Gold Loan

Gold loan or loan against gold is a secured loan in which a customer pledges his/her gold ornaments as collateral with a gold loan company. The bank, in turn, gives a loan amount as per the market value of gold to the customer. It is a very quick and easy way of fulfilling one’s financial needs as compared to the other loans.

  • Facilities Type: Overdraft or Demand Loan
  • Purpose: To fulfill personal financing need
  • Balance Limit: Rs. 25,000 to Rs. 1,500,000 (for individuals)
  • Rs. 25,000 to Rs. 2,500,000 (for institutions).
  • Target Customer: Housewives, jewelry shop owners
  • DBR: N/A
  • LTV: 1. Up to 80% against coin and bar 2. Up to 70% for ornaments
  • Tenure: 1 year revolving for overdraft (as per approval for
  • demand loan not exceeding 1 year).
  • Collateral: 24 carat gold
  • Age: 21 years to 70 Years at the time of maturity