A Guide to Applying for Gold Loans in India

A Guide to Applying for Gold Loans in India
A Guide to Applying for Gold Loans in India

Are you in need of quick access to funds in India? One popular option to consider is applying for a gold loan, where you can pledge your gold jewelry as collateral. This secured form of lending allows individuals to obtain the cash they need without the hassle of extensive documentation or credit checks. 

In this article, we will guide you through the process of applying for gold loans in India, covering both offline and online options.

Whether you have a medical emergency, educational expenses, or a family event to fund, a gold loan could be the solution you're looking for.

β€œWhile gold is largely a dormant asset, gold loans allow customers to monetize the ornaments by pledging them for some time. Gold loans are largely seen as a means of last resort for emergency and unplanned expenses; equally, there is growing acceptance of gold ornaments being the source of loans for working capital and planned expenses,” Radian Finserv Founder Sumit Sharma told StartupTalky.

Radian Finserv, an RBI-registered non-banking finance company (NBFC), specializes in retail asset-backed lending. Focused on gold-backed loans, Radian employs cutting-edge technology platforms to ensure a smooth and enhanced customer journey. 

Let's delve into the details of how you can apply for a gold loan and meet your financial needs effortlessly.

Offline Application Process

Online Application Process
Gold Loan Interest Rates as per BankBazaar Website
Eligibility Criteria for Gold Loans

Offline Application Process

For individuals who prefer a traditional approach, the offline application process for gold loans in India offers a straightforward method to secure the funds you need.

By following a few simple steps, you can pledge your gold jewelry as collateral and access quick cash without the need for extensive documentation or credit checks.

Offline gold loans in India offer a convenient, localized, and accessible financing option for individuals who prefer face-to-face interactions and personalized assistance in the loan process. While digitalization has brought about advancements in online lending platforms, offline gold loans continue to play a significant role in the lending landscape, catering to diverse customer preferences and needs.

Find a Gold Lending Firm

Start by researching and identifying a reputable gold lending firm in your locality. It is crucial to choose a lender that offers competitive interest rates, flexible repayment terms, and excellent customer service. Take the time to select a trustworthy partner for your financial needs.

Collect Required Documents

Gather the necessary documents for the loan application, including proof of identity, proof of address, and two recent passport-size photographs. Accepted documents for proof of identity may include your PAN card, Aadhar card, or passport copy, while proof of address can be provided through an Aadhar card, driving license, or utility bills.

Visit the Branch

Once you have the required documents in hand, visit the branch of the chosen gold lending firm to begin the application process. Bring along the gold jewelry that you intend to pledge as collateral and be prepared to complete the necessary paperwork to move forward with your loan application.

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Online Application Process

In today's digital age, applying for a gold loan online has never been easier. With just a few clicks, you can access the funds you need without the hassle of visiting a physical branch. Here's a step-by-step guide to the online application process:

  • Choose an Online Lender: Research and select a reputable online gold loan provider that offers a secure and user-friendly website for a seamless application experience.
  • Register/Login: Create an account on the lender's website if you're a new user, or simply log in with your existing credentials.
  • Fill out the Application Form: Provide accurate personal and financial information, along with details about the gold jewelry you intend to pledge.
  • Upload Documents: Scan and upload necessary documents, such as proof of identity and address, ensuring they are clear and legible.
  • Gold Assessment: The lender will visit your location, and evaluate the purity and value of your gold jewelry based on the information provided in the application.

Once your application and documents are submitted, the lender will assess the gold's purity and market value to determine the loan amount you qualify for. Upon approval, the funds will be disbursed directly to your bank account or through alternative options as per the lender's policies. This convenient online process saves you time and effort, allowing you to access the financial support you need without leaving the comfort of your home. Apply for a gold loan online today and make your financial goals a reality with ease.

β€œWe believe that a gold loan is a smart option (and not just a means of last resort), and are working to make it easier and comfortable for customers to take a loan against gold, while at the same time also providing greater comfort and security/peace of mind around the safety of their ornaments,” Sharma noted.

Gold Loan Interest Rates as per BankBazaar Website

Bank Interest Rate Loan Amount
Axis Bank Gold Loan 17% p.a. onwards Rs.25,001 to Rs.25 Lakh
HDFC Gold Loan 9.00% p.a. to 17.65% p.a. Rs.25,000 onwards
Canara Bank Gold Loan 9.25% p.a. Rs.5,000 to Rs.35 Lakh
Muthoot Gold Loan 22% p.a. Rs.1,500
SBI Gold Loan 8.75% p.a. to 9.90% p.a. Rs.20,000 to Rs.50 Lakh
Kotak Mahindra Gold Loan 9.00% p.a. to 24.00% p.a. Rs.20,000 to Rs.1 Crore
IndusInd Bank Gold Loan 10.00% p.a. to 16.00% p.a. Up to Rs.20 Lakh
Manappuram Gold Loan 24.75% p.a. to 26.00% p.a. As per the requirement of the scheme
Bank of Maharashtra Gold Loan 9.30% p.a. onwards Up to Rs. 25 Lakh
PNB Gold Loan 9.25% p.a. Rs.25,000 to Rs.25 Lakh
Bank of Baroda Gold Loan 9.40% p.a. Up to Rs.50 Lakh

Please note that the repayment tenure mentioned is taken as 6 months, assuming the purity of gold is 22 carats. 

Eligibility Criteria for Gold Loans

When considering applying for a gold loan in India, it is essential to understand the eligibility criteria set by the lenders. These criteria ensure that the borrower meets certain requirements to qualify for the loan. Here are the key factors that typically determine eligibility for gold loans:

  1. Age: To be eligible for a gold loan, the applicant should be 18 to 75 years old (the maximum age limit varies from lender to lender). This age requirement ensures that the borrower is of legal age and can enter into a loan agreement.
  2. Residency: Another important criterion is that the borrower must be a resident of India. This requirement confirms that the borrower has legal and stable residency status in the country, which is necessary for availing of a gold loan.
  3. Collateral: One of the central aspects of a gold loan is the collateral provided in the form of gold jewelry. The gold jewelry pledged as collateral must meet the lender's purity requirements. This ensures that the value of the collateral is sufficient to secure the loan amount.

Understanding and meeting the eligibility criteria for gold loans are crucial steps in the loan application process. By ensuring that you meet the age, residency, and collateral requirements set by the lender, you can increase your chances of getting approved for a gold loan.

It is advisable to review the specific eligibility criteria of different lenders to find the one that aligns with your financial circumstances. By meeting these criteria, you can pave the way for a smooth and successful gold loan application experience.


In conclusion, applying for a gold loan in India can be a straightforward and convenient way to access quick funds in times of need. Whether you choose to apply offline at a local lender or opt for the convenience of online platforms, the process is designed to be efficient and hassle-free.

By pledging your gold jewelry as collateral, you can secure a loan without the need for extensive documentation or credit checks. As long as you meet the eligibility criteria set by the lender, you can easily obtain the cash you require for various purposes, such as medical emergencies, educational expenses, or family events. Consider exploring the options available to you and take advantage of the benefits that a gold loan can offer in times of financial need.


What are the options to apply for gold loans in India?

There are two options to apply for gold loans in India, which are offline and online options.

What is the offline application process for a gold loan?

The offline application process for a gold loan involves finding a gold lending firm, collecting required documents, and finally visiting the branch and applying for the gold loan.

What are the eligibility criteria for Gold Loans?

The eligibility criteria for Gold Loans include age criteria (the applicant should be 18-75 years old) residency criteria (the applicant should be a resident of India), and collateral criteria (gold jewelry must meet the lender's requirements).

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