What Is A Gold Loan Scheme And How Does It Work?
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Gold has been a savior for many Indians, from weddings to festivities to tough times. People’s trust in gold has made it as valuable as it is today. It is popularly known as a haven for various reasons. One of the most important ones is its liquid nature. It is easy to convert it into cash and get a gold loan.
A gold loan is a form of secured debt provided by the banks and NBFCs where the borrower pledges their golden elements. The process of availing a gold loan from IIFL Finance is simple:
1. Visit any of the IIFL gold loan branches pan India or apply online or through IIFL loan app.
2. A simple e-KYC with your Aadhar Card number.
Rates and charges
The gold loan at IIFL Finance starts at an interest rate as low as 0.99 p.m. onwards. It varies depending upon the tenure and amount of the loan. Additionally, purity plays an important role in determining the interest rate.
Documents Requirement
IIFL Finance accepts a variety of identity and address proof, including-
• Aadhaar Card
• Valid passport
• Ration Card
• Electricity Bill
• Valid Driving License
• Voter ID Card
• Job Card Issued by NREGA
• Electricity Bill
Benefits Of A Gold Loan
Gold loans have been an age-old concept, but now, it is more structured and easy to avail of at great prices. A few benefits of taking a gold mortgage loan are:
1. Lower Interest Rate:
A gold loan is cheaper compared to other unsecured and personal loans. The gold loan interest rate from IIFL Finance starts from as low as 0.99% per month; one of the best rates in the market.
2. Processing Fee:
Gold loan charges one of the lowest processing fees, with IIFL Finance charging as low as INR 0, depending upon the availed scheme.
3. Easy Verifications:
The documentation process for gold loans isn’t as complex as other types of loans. There are bare minimum documents required, like address proof and identity proof.
4. Insurance Cover:
The gold ornaments pledged by the borrower are protected by insurance.
Apply for a gold loan scheme with IIFL Finance
IIFL Finance, a leading gold loan lender. Since its inception, it has helped several borrowers have a hassle-free experience. They have thirty years of experience in providing gold mortgage loans to 6 million satisfied customers who received their financing smoothly.
IIFL offers competitive interest rates and flexible repayment terms for short-term gold loans. They ensure the safety of your collateralized physical gold until the required amount has been repaid. There are absolutely no additional costs at the redemption of your gold mortgage. You can also avail yourself of digital gold anytime, anywhere. In case of any query, you can contact our 24-hour customer service team via phone or live chat.
Walk into any of our branches pan India or apply online, fill out an e-KYC and get approved for a gold loan in under 30 minutes.
Frequently Asked Questions
IIFL Finance majorly provides schemes that include the minimum loan amount of INR 3,000 with no cap and reasonable interest rates.
Yes, IIFL Finance has special Agri loans schemes ideal for farmers. Please get to nearest branches or call our 24x7 customer service for specific details.
Banks and NBFCs offer gold loan schemes, which are financial facilities where you pledge your gold jewellery or eligible gold coins as security to borrow money. The scheme defines key terms like interest rate, loan tenure, repayment options, and eligible loan amount. It offers a quick and convenient way to access funds for personal or short-term business needs without selling your gold while allowing you to reclaim it after repayment.
Gold loans are based on the assessed value of your pledged gold. There is no fixed minimum or maximum set by regulation; lenders including IIFL Finance determine the eligible loan amount after verifying the weight, purity, and current market value of the gold. The loan amount is sanctioned according to regulatory LTV limits of RBI.
Your pledged gold is stored in secure vaults maintained by the lender, with safety systems, restricted access, and insurance coverage against risks like theft, fire, or damage. The gold remains protected throughout the loan tenure and is returned after full repayment.
Gold loans are generally processed quickly because they are secured by physical gold. After verifying the purity and weight of the gold and completing required documentation, the loan can be approved and disbursed, often on the same day, depending on the lender’s processes.
Disclaimer : The information in this blog is for general purposes only and may change without notice. It does not constitute legal, tax, or financial advice. Readers should seek professional guidance and make decisions at their own discretion. IIFL Finance is not liable for any reliance on this content. Read more
