How Do I Apply for a Gold Loan for My MSME?

Gold loans provide a convenient way for MSMEs (Micro, Small, and Medium Enterprises) to meet their business capital requirements quickly by pledging gold as collateral. If you run an MSME, here are the general steps to follow to apply for a gold loan:

Step 1: Pick a Loan Provider
Research leading banks, Non-banking Financial Companies (NBFCs) and fintech institutions offering gold loans for MSMEs online. Compare interest rates, charges, loan amounts and eligibility criteria before selecting a suitable loan provider.

Step 2: Submit the Application
Visit the loan provider’s website and find the MSME gold loan application form. Complete the online form accurately with all your personal, business, and loan details.

Step 3: Upload KYC Documents
As per the financial institution’s requirements, upload scanned copies of identity proof, address proof, business registration certificate, Income Tax Returns (ITRs), bank statements, etc. This will help with faster processing.

Step 4: Gold Valuation & Sanction
After reviewing your documents, the gold loan provider will schedule a branch visit for a gold appraisal. Get your ornaments valued to receive an in-principle loan amount sanctioned based on your Loan-to-Value (LTV) ratio.

Step 5: Accept the Offer & Pledge Gold
Review the final gold loan offer carefully before digitally accepting it. Complete the pledge formalities by visiting the nearest branch. The loan amount then gets credited to your bank account.