How Does the Process of Applying for a Gold Loan Work?

The process of applying for a gold loan can be done either offline by visiting the loan provider’s branch or online for added convenience. The online process makes gold loan applications more convenient without physical visits to the branch. However, initial gold valuation requires visiting the loan provider’s branch before availing an online loan. Here are the key steps involved in applying for a gold loan:

• Research different banks, Non-banking Financial Companies (NBFCs), and specialized lending institutions that provide gold loans. Compare their interest rates and charges to pick a reputed provider.
• Verify the eligibility criteria specified by the chosen loan provider, such as age, quality/quantity of gold jewellery, etc. Gather the required Know Your Customer (KYC) documents.
• Initiate the application process online by visiting the loan provider’s website. Fill the application form providing your personal, financial and other details.
• Visit the nearest branch with your gold jewellery. The gold will be evaluated for purity and weight to determine the maximum loan amount.
• Carefully read the gold loan agreement terms and conditions. Sign the agreement and obtain a pledge letter. The loan provider/financial institution will retain gold ornaments as collateral.
• Based on the loan provider’s process, the approved loan amount will be disbursed into your bank account within a few hours to days.
• Repay the loan principal and interest amounts as per the repayment schedule to avoid penalties.
• Once the loan is fully repaid, submit relevant documents to the loan provider to retrieve your pledged gold jewellery."