What is the Application Process for a Gold Loan for Renovation?

The process of availing of a gold loan for your home renovation needs is quite straightforward:

• First, shortlist banks, Non-banking Financial Institutions (NBFCs) that offer gold loans for personal needs. Compare their interest rates and charges.
• Check that you meet the loan provider’s eligibility criteria, such as age, residence proof, minimum gold required, etc.
• Collect all necessary documents, such as ID proof, address proof, gold valuation certificates, etc., and upload them to the financial institution’s portal.
• Estimate your total renovation costs and apply for the loan amount you need by filling out the application form.
• Pledge your gold ornaments, like jewellery, coins, etc., as collateral at the nearest branch.
• The loan provider will assess your application and creditworthiness. If approved, you will need to sign the gold loan agreement.
• The loan amount sanctioned will be disbursed into your bank account within a few days.
• The loan provider will store your gold safely in their locker till full repayment.
• Start using the loan to pay for your renovation projects and service the Equated Monthly Instalments (EMIs).
• Once fully repaid, collect your gold collateral from the branch."