What is a Gold Loan for Women and How Does It Differ from Regular Gold Loans?

Gold loans allow applicants to use their gold jewellery as collateral to secure a loan. While the application process is similar for men and women, some financial institutions provide special gold loan schemes and waive some eligibility criteria for women. Here’s an overview:

• Eligibility Criteria: Banks and Non-banking Financial Companies (NBFCs) typically have more relaxed eligibility norms for women applicants applying for gold loans. The minimum age may be lower, and minimum income requirements are often waived.
• Interest Rates: Many financial institutions offer lower interest rates on gold loans for women compared to regular loans. Rates can usually be 0.5% to 3% lower.
• Higher Loan-to-Value Ratio: The maximum permitted loan amount provided against gold collateral is up to 75% of the gold value.
• Convenient Repayment Options: Repayment flexibility can be offered on women-centric gold loans with options like lower EMIs, longer tenures and flexible repayment schedules.
• Processing Fee Waivers: Many lending companies waive or lower the processing fee and other charges for women taking gold loans, reducing upfront costs.
• Preferred Rates on Advance Renewals: Special discounts or lower interest rates can be on the renewal of existing gold loans. Quicker processing and top-up loans may also be available.