How To Get A Gold Loan At Your Doorstep

Leading to rise in demand for gold loan, new-age fintech lenders have launched a gold loan at your doorstep service. Know the process to apply for gold loan here!

14 Jun,2022 06:59 IST 289 views
How To Get A Gold Loan At Your Doorstep
In this age of everything digital, practically anything from grocery to medicines and from tickets to mutual funds and shares can be bought from the comfort of the home and without any hassle. So, why should the process of taking a gold loan be any different? Yes, in 2022, even gold loans can be availed while sitting at home, with just a few clicks.
Gold loans are fast becoming one of the most preferred ways of borrowing money in India even as demand for the yellow metal continues to surge. Banks and non-banking finance companies (NBFCs) provide gold loans almost instantly and with very little paperwork.
A gold loan is a secured advance that can be availed by pledging jewellery or even gold coins. This pledged gold is the collateral that a borrower offers against the loan, and can be forfeited for non-payment of principal and interest.

How Gold Loan Amount Is Calculated

The amount of gold loans disbursed depends on the quantity and purity of the gold that is pledged. The minimum purity that is admissible is 18 carats, below which most gold loan companies do not accept the jewellery.
  • LTV ratio: An important thing that borrowers have to keep in mind is the ‘loan-to-value’, or LTV, ratio. This ratio is the maximum amount the lender extends as a percentage of the value of gold provided by the borrower as collateral, after its purity has been assessed and verified.
  • So, if one pledges gold jewellery worth say Rs 5 lakh and the lender provides an LTV of 60%, the loan amount would be Rs 3 lakh. But if another lender offers an LTV of 75%, the figure will go up to Rs 3.75 lakh.
  • Typically, the following formula is used to determine the amount of gold loan to be disbursed: Net weight x Rate of Gold per Gram x Purity.

Gold Loan At Your Doorstep

Most banks and NBFCs require prospective borrowers to walk into their physical branches to fill up the paperwork and deposit their gold jewellery before the loan is disbursed. The borrowers would also need to visit the branch if they want to top-up or renew their loan or close the loan account after repaying the entire principal with interest.
However, some lenders now also offer a doorstep service to customers and provide ‘digital gold loans’.
Essentially, lenders allow customers to apply for a fresh gold loan and to top-up and renew an existing gold loan in just a few clicks on their website or mobile app, anytime and from anywhere.
Lenders then send their representatives to the address of the borrower for evaluation and verification. The representative evaluates the jewellery and completes all the formalities at the borrower’s home, takes the jewellery for storage and then ensures the loan amount is disbursed directly to the customer’s bank account.

Steps For Taking A Gold Loan At Doorstep

Step 1:
Use the lender’s website or mobile app to apply online and upload the required documents. A customer can also apply via a phone call on the number listed on the website.
Step 2:
After applying online, the lender will send an executive to complete the valuation process and collect the gold. The executive will complete the KYC process and all other formalities.
Step 3:
After completing all formalities, the executive will send a request that the loan be disbursed to the customer’s bank account. The entire process of disbursement can be done in just half an hour.
Step 4:
The gold collected is kept securely in a vault, which is under surveillance round the clock.
Step 5:
A borrower can start repaying the loan online via their bank accounts.
Step 6:
At the end of the loan tenure, when the entire principal and interest are paid bank, the borrower can make a request online to close the account and get the gold back.

Facilities Offered With Digital Gold Loans

Prospective borrowers can not only apply for loans at their doorsteps but can also enjoy several other facilities. They can:
  • Check details of all active and closed loans online
  • Avail a top-up loan directly into their bank account
  • Renew their loan account online
  • Add or modify their bank account details without visiting any branch
  • Pay their dues online, seamlessly
  • Download their account statement

How To Top-Up Or Renew Existing Gold Loan Digitally?

While each bank or NBFC may follow a slightly different procedure to sanction a top-up or renew a loan, the basic process is similar. Here are the main steps:
Step 1:
Log into your account with the bank or the NBFC via their website or mobile app.
Step 2:
Add a savings or current bank account, if not done previously. To add a new bank account, you need the account number and the IFSC code, and upload a scanned copy of the bank cheque or pages of bank passbook.
Step 3:
Once the bank account has been added, the eligible loan value will appear on the screen. Enter the required amount and click on the amount to be disbursed.
Step 4:
A breakup of taxes and other charges will be displayed. The borrower copy will be sent on the email address provided on the portal.
Step 5:
As a final step, borrowers will see a summary screen with the name of the scheme, tenure of loan, expiry date of tenure and loan amount.
Step 6:
For verification, a one-time password will be generated. Upon confirmation, the top-up loan will be disbursed. The borrower will be able to download a copy of the details for their perusal.


In this digital age, you don’t have to go to a branch of a bank or non-bank lender to take a gold loan. Most banks and reputed NBFCs such as IIFL Finance offer you the facility of availing a loan through an online process.
All you have to do is go to the website of the lender, register, fill in your key details such as address and bank account details, and a representative of the lender will come to your home to complete the process.
This is a simple and easy process for availing of fresh loans as well as top-up loans and renewals on existing loans for which gold has already been pledged.

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