Gold Loan Tips For Students & Professionals

Gold has long been considered a trusted commodity in Indian households. One of the most rewarding advantages of investing in gold is that it does not depreciate like paper money. Even when the market crashes, the value of gold rarely falls significantly. Therefore, you can acquire a gold loan for any profession and purpose, including education.

This article discusses some gold loan tips for students and professionals.

Gold Loan Tips For Students And Professionals

Many students and professionals pledge gold, such as jewellery, ornaments as collateral for their loans. Gold acts as security for lenders against possible loan defaults by borrowers. Lenders estimate the value of the pledged gold and provide the amount equivalent to the maximum gold loan-to-value ratio.

Here are some gold financing advice and tips for students planning higher education or professionals looking to expand their businesses.

1. Lender Comparison

Multiple lenders in India offer gold loans, including local jewellers. However, this is not secure. Before committing their valuable assets, borrowers should compare lenders based on terms, such as loan amount, interest rate, and repayment options. NBFCs registered with the Reserve Bank of India are authorized to provide reasonable gold loan interest rate.

2. Gold Purity Check

Gold has a maximum purity of 24 carats but can sometimes go as low as 4. Most lenders will not accept less than 18k of gold as collateral. Therefore, borrowers should ensure their gold asset purity is between 18 and 24 carats before pledging their assets for a gold loan. Computerized laboratories can test gold, verify its purity, and issue certificates.

3. Don’t Be Emotional

In India, gold is more than just metal. It also has ancestral, religious, and cultural significance. Therefore, when applying for a gold loan, it's best to put your emotions aside and have a confident repayment plan to get your promised gold back.

4. Explore The EMI Options

Most lenders offer flexible gold loan repayment options like

• Daily EMI option
• Make a partial payment
• Bullet refund
• Interest now, principal later

Apply For A Gold Loan With IIFL Finance

IIFL Finance is a leading gold loan provider. We provide quick loans with small financial requirements with your gold as collateral. You can check the gold rates at your nearest IIFL Finance branch or apply for gold loans online.

The entire process, from application to disbursement, is 100% online. The disbursals take only a few hours if the gold purity matches the loan criteria. This way, you can fulfill your needs and repay them per cycle. Apply for an IIFL Finance gold loan today!

Frequently Asked Questions

Q.1: What are the required documents for a gold loan?
Ans: Since the gold loan process is simple and quick. The standard documents required for a gold loan are

• ID proof, such as your Driving License, Pan Card, Form 60/61, Passport, and Voter ID card.
• Address proof, such as House Registration Documents, and Utility Bills

Q.2: Is a CIBIL score affected by a gold loan?
Ans: Your credit score history generates a CIBIL score. If you default on your gold loan EMIs or full repayment, it may negatively impact your CIBIL score.