Gold Loan Locker: Benefits, How to Avail, Its Uses & Charges

Individuals often store jewelry and other assets in a gold locker in banks for safe-keeping. Know everything about gold loan locker facilities here!

14 Dec,2022 12:57 IST 289
Gold Loan Locker: Benefits, How to Avail, Its Uses & Charges

Gold is one of the most popular forms of investment in India. Aside from its aesthetic purposes as ornaments, Indians can use gold to resolve any financial crisis. By mortgaging gold, people obtain a substantial sum of money to meet their immediate financial needs. When they pledge their collateral, most financial institutions offer locker facilities for individuals to store their pledged high-value assets and provide the highest level of safety for their pledged gold.

How To Avail Of Gold Loan Locker Facilities?

A gold loan is a secured credit option where individuals pledge gold articles as collateral. They can receive their collateral after repaying the secured loan, as with other secured financing options. Gold loan benefits, such as affordable interest rates and high loan amounts, are only available to those who submit substantial and pure gold articles.

Financial institutions offer locker facilities to keep pledged items secure. The borrower must submit an application form, KYC documents, and locker agreement to obtain a gold locker in India. In the first year, financial institutions do not charge a fee. After a year, the customer will be responsible for the charges

Benefits Of Gold Loan Locker Facilities

Some of the benefits of gold loan lockers for customers are as follows.

1. Safety

You are undoubtedly safer keeping your valuables in a lockbox offered by a financial institution than in your home. Financial institutions have a secure infrastructure such as high-security vaults, entry and exit monitoring systems, and upgraded electronic surveillance systems. This infrastructure makes them a popular choice among customers.

2. No Annual Locker Charges

There are no annual locker charges for gold loan lockers from financial institutions. Customers can save a considerable amount that they would have otherwise incurred to ensure the safety of their pledged gold.

3. No Documentation Needed

If you are applying for a gold locker at a bank, you must complete additional paperwork, such as a locker nomination form and a stamp paper locker agreement. Since you already submit all the documents for your gold loan, there are no further requirements for gold loan lockers.

4. Insurance

Gold loans come with highly-secure safety lockers that are fully insured since the customer is present when the contents are weighed, marked, documented, and sealed.

5. Eligibility

There's often a long waiting period for gold lockers at banks, even if you're a bank customer. However, you can apply separately for a gold locker if you have obtained a gold loan.

Get A Gold Loan From IIFL Finance

Providing extensive gold loans in India, IIFL Finance offers industry-leading benefits when you apply for a gold loan. The funds are available within 30 minutes of your application, based on the value of your gold.

The IIFL Finance Gold Loans are the most affordable loan scheme available due to their low fees. Furthermore, there are no hidden fees when applying for a loan with IIFL Finance. Apply today!

Frequently Asked Questions

Q1. How safe is your gold in a lender's locker?
Ans. Lenders also keep the physical gold they accept as collateral in a highly secure locker and follow all the same security precautions as banks.

Q2. Is it better to sell gold or take a gold loan?
Ans. You will only receive the amount you paid for gold if you sell it, without any making charges incurred by the jeweller. Because you retain ownership of the asset and won't suffer making-charges losses, a gold loan is a good option.

Q3. What happens in the case of a bank locker robbery?
Ans. If any valuable item is stolen from a bank locker, the borrower will be entitled to compensation by the bank, according to the RBI.

Disclaimer: The information contained in this post is for general information purposes only. IIFL Finance Limited (including its associates and affiliates) ("the Company") assumes no liability or responsibility for any errors or omissions in the contents of this post and under no circumstances shall the Company be liable for any damage, loss, injury or disappointment etc. suffered by any reader. All information in this post is provided "as is", with no guarantee of completeness, accuracy, timeliness or of the results etc. obtained from the use of this information, and without warranty of any kind, express or implied, including, but not limited to warranties of performance, merchantability and fitness for a particular purpose. Given the changing nature of laws, rules and regulations, there may be delays, omissions or inaccuracies in the information contained in this post. The information on this post is provided with the understanding that the Company is not herein engaged in rendering legal, accounting, tax, or other professional advice and services. As such, it should not be used as a substitute for consultation with professional accounting, tax, legal or other competent advisers. This post may contain views and opinions which are those of the authors and do not necessarily reflect the official policy or position of any other agency or organization. This post may also contain links to external websites that are not provided or maintained by or in any way affiliated with the Company and the Company does not guarantee the accuracy, relevance, timeliness, or completeness of any information on these external websites. Any/ all (Gold/ Personal/ Business) loan product specifications and information that maybe stated in this post are subject to change from time to time, readers are advised to reach out to the Company for current specifications of the said (Gold/ Personal/ Business) loan.

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