Everything You Need to Know About Instant Gold Loan

Gold has always come to the rescue in times of urgent financial crisis. In today’s financial landscape, an instant Gold Loan lets you avail funds without having to sell your gold assets. You simply pledge your gold belongings (ornaments, coins etc.,) as collateral and get a loan against it. With minimal paperwork, affordable interest rates and flexible repayment options, gold loans empower you to handle emergencies or meet personal goals with ease.

However, to make the most of this financial tool, it’s important to understand how instant gold loans work, what you need to qualify, and the costs involved. Read this blog as we explore everything you need to know about getting an instant loan against your gold belongings.

What is an Instant Gold Loan

An instant Gold Loan is a secured loan that lets you access quick funds by pledging your gold assets (e.g., gold jewelry or coins) as collateral with a lender. NBFCs and banks evaluate the current market value of your gold to determine the final loan amount, which is disbursed instantly to your account. Besides, lenders also provide various benefits such as flexible repayment options and competitive interest rates, leading to a pleasant loan experience.

Benefits of an Instant Gold Loan

As stated before, an instant Gold Loan can be a life saver when you are in need of instant funds. Instead of selling your gold assets, you can opt for a loan against gold, use the funds while retaining the ownership of your gold. In addition, the following advantages of a Gold Loan makes it a lucrative option.

1. Quick Loan Processing

Instant fund requirements demand swift loan processing, faster approvals, and quick disbursals. This is where an instant Gold Loan truly stands out. Due to their secured nature, the approval and disbursal processes are quick and hassle-free, leading to faster disbursal of loan amount.

2. Minimal Documentation

Most lenders require only a few essential documents to process a Gold Loan. This eliminates the need for lengthy paperwork, and basic KYC documents like Aadhaar and PAN are usually sufficient.

3. High Loan-to-Value

When it comes to an instant loan against gold assets, lenders typically offer up to 75% of the gold’s current market value. This way, you can get access to a substantial loan amount depending on the market value of your gold belongings.

4. Competitive Interest Rates

Due to their unsecured nature, gold loans inherently pose less lending risk. As such, lenders offer competitive interest rates compared to unsecured loans, leading to affordable borrowing and manageable repayments. To get the best interest rates on a Gold Loan , it is recommended that you check your CIBIL score and apply with an excellent score.

5. Flexible Repayment Options

As an added advantage, most lenders allow you to choose a repayment tenure that suits your ability to repay on time without affecting your monthly finances. Ideally, a longer tenure leads to a lower monthly EMI amount but more interest while shorter tenures lead to higher EMI but less interest.

How Does an Instant Gold Loan Work

NBFCs and banks offering instant gold loans require you to meet certain basic eligibility requirements and furnish minimal documents to process your Gold Loan application. This includes evaluating the purity of the gold being pledged, determining market value, and offering a loan amount as per internal policies and other factors.

Eligibility Criteria for a Gold Loan

Gold Loan eligibility criteria are often simple and straightforward. In general, you must fulfil the following basic eligibility criteria.

• You must be at least 21 years of age.
• You must be an Indian citizen.
• The purity of gold should be between 18 to 22 Karats.
• Gold should belong to you.

Documents Required for a Gold Loan

Typically, lenders only ask for basic KYC documents to apply for an instant Gold Loan. This usually includes some form of photo identification and documented residential proof. Ideally, any one or all of the following documents are required for a Gold Loan.

• Voter ID
• Driving License
• Passport

Interest Rate and Charges

As stated before, instant gold loans are provided against gold which is safely held by the lender as collateral throughout the loan tenure. This significantly reduces the lending risk, leading to competitive interest rates.

However, you may need to bear certain charges associated with the handling and processing of your loan. These may include:

• Processing charges
• Stamp duties
• Safe custody charges
• Default charges
• Notice charges
• Part release charges
• Auction charges

To Conclude

An instant Gold Loan is your go-to financial solution to access quick funds even if you do not have an excellent credit score. You can get up to 75% worth of your gold belongings as a loan by pledging them as collateral. In addition, features like competitive interest rates and flexible repayment tenures make it easier to repay without hampering your monthly finances.

Any Indian citizen can apply for a loan against gold by fulfilling a few simple eligibility requirements and furnishing basic KYC documents. If you’re on the lookout for quick funds against your gold belongings, then Poonawalla Fincorp’s newly launched hassle-free Gold Loan is worth a try. Simply visit your nearest branch to apply for an instant loan against gold.

Frequently Asked Questions

Can I get a Gold Loan immediately?

Yes. You can get a loan against your gold immediately with an instant Gold Loan. All you need to do is fulfil a few basic eligibility requirements and submit your KYC documents to apply for a Gold Loan with Poonawalla Fincorp.

Is CIBIL required for a Gold Loan?

Although a high CIBIL score is not mandatory to be eligible for a Gold Loan, having a score above 750 can help you secure the loan at lower interest rates.

How much loan can I get from a Gold Loan?

You can get up to 75% loan-to-value against your gold belongings from a Gold Loan. Poonawalla Fincorp offers up to ₹50 Lakhs loan against gold with benefits like flexible tenure and competitive interest rates.