Gold Loan

Age limit: Gold loans are only given to borrowers who are 18 plus years of age. There are restrictions as to age limitations which differ from one financial institution to another but commonly embrace ages of 60-75 years of age.

Nationality: There are a number of qualifications that the borrower needs to meet to be eligible for the programme; such as being a resident Indian citizen.

Gold type and purity: Almost all the financial institutions only accept gold in form of jewellery with an 18-24 karat rating.

Repayment tenure: Credit risks should be clients’ ability to pay back their loans within the required time frame. Typically, minimum tenures are about 6 months with a maximum of 4 years though they differ from one financial entity to the other.

For photo proof:

• 1-2 passport-size photographs

Any of the following for identity proof:

• Copy of valid passport
• Valid driving license
• Voter ID card
• Aadhaar card issued by UIDAI
• Valid ration card
• Letter with loan applicant’s personal details provided by National Population Registration

Any of the following for address proof:

• Voter ID card
• Copy of valid passport
• Valid driving licence
• Aadhaar card issued by UIDAI
• Valid NREGA job card
• Letter with loan applicant’s personal details provided by National Population Registration

For applicants with existing Agriculture Loans exceeding a certain amount:

• Proof of landholding

For applicants with existing Allied Agriculture Loans over a certain amount:

• Proof of supporting documentation

Interest rates for gold loans are comparatively lower than other types of loans. They can range between 8% per annum to 26% per annum depending on the financial entity and gold loan scheme chosen.