Will gold loan increase CIBIL™ score?

Repaying a gold loan on time can definitely help improve your CIBIL™ score and overall credit profile. When you take a gold loan, the lender reports your borrowing and repayment activity to credit bureaus like CIBIL®. If you consistently pay your EMIs or settle the loan as agreed, this demonstrates responsible financial behaviour. Over time, such positive repayment history can boost your credit score and make you more attractive to future lenders.

Gold loans are secured loans, so they are often easier to obtain even if you have a limited or average credit history. For those new to credit, managing a gold loan well is a practical way to start building a positive credit record. Lenders appreciate borrowers who handle both secured and unsecured loans responsibly and having a mix of credit types is viewed favourably in your credit assessment.

However, it’s important to remember that missing payments or defaulting on your gold loan will have the opposite effect. Late or missed payments are reported to credit bureaus and can lower your score making it quite hard to access credit in the future or leading to higher interest rates.

To ensure your gold loan benefits your CIBIL™ score:

• Always pay your EMIs or dues on time.
• Avoid taking multiple loans in a short period.
• Communicate with your lender in case you face repayment difficulties.

By managing your gold loan responsibly, you not only protect your gold but also strengthen your financial reputation for the future.