Know The Maximum Gold Loan Tenure & Eligibility

Check the maximum gold loan tenure at IIFL Finance? Read this article to know everything about gold loan tenures in detailed. Read now!

4 Dec,2023 11:35 IST 1475
What Is The Maximum Tenure For Gold Loan?

IIFL Finance Gold Loan is a short-term, secured loan against gold jewellery offered to customers to meet their immediate personal or business needs. The gold loan also offers some attractive features such as, one of the lowest interest rates, no credit score and flexible repayment options.

Speaking of repayment, the repayment tenure for a gold loan is between three months to four years. It depends on various factors such as, the loan amount, the borrower’s creditworthiness, the lender’s policies and the prevailing market conditions.

With an IIFL Finance Gold Loan, customers can pay off a loan in a minimum of six months, while the maximum gold loan tenure is 24 months. Besides, they can use the Gold Loan calculator to determine the eligible gold loan amount and the EMI calculator to calculate their EMIs. They can then plan their repayments accordingly. A well-planned gold loan repayment can surely help you improve your credit score.

Gold Loan Market

The estimated value of the organised gold loan market in India is somewhere around INR 6 trillion, with banks accounting for a majority share of 80% and Non-banking Finance Companies the remaining, 20%. In the past few years, leading national and private banks have increased gold loan disbursals and are leveraging the opportunity in the gold loan segment by opening branches. Even NBFCs are catching up by streamlining the application and disbursal processes. This can be attributed to a shift in consumer preferences from the unorganised to an organised sector following an awareness of associated risks.

Can You Extend The Gold Loan Tenure?

The option to extend a gold loan tenure is not available with IIFL Finance. The stipulated repayment period for a gold loan is designed to allow a customer sufficient time to manage their repayments without creating a burden on them. By using the gold loan and EMI calculators, to determine the eligible loan amount and EMIs, the customer can schedule his repayment accordingly.

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Depending on the gold's purity, weight, gold loan per gram rate on the day the gold loan application is submitted, an individual's loan amount may vary.

Gold Loan Tenure

Gold loans typically enjoy a repayment tenure of a short term. The time period is short owing to the volatility in the price of gold which has a significant impact on the lender’s profitability. By offering gold loans that have a short tenure, lenders avoid negative impact on their margins.

Currently, lenders in the gold loan market are offering a repayment tenure of upto 48 months. A majority of them offer a period of up to 12 months, followed by lenders offering a repayment tenure of 36 months. One lender is offering a repayment tenure of as less as seven days.

At IIFL Finance, the minimum gold loan tenure is no less than six months, while the maximum gold loan tenure is 24 months.

Eligibility for Gold Loan

In order to apply for a loan, an applicant must meet certain criteria. IIFL Finance approves a gold loan to an applicant by ensuring they meet the following gold loan eligibiltiy criteria:

  • The applicant is a citizen of India
  • The applicant is between the age of 18-70 years
  • The applicant is either a salaried individual/self-employed professional/entrepreneur/trader/farmer
  • The applicant can pledge gold jewellery having a purity of 18-22 carats


A gold loan is a short-term facility to ride through a financial emergency. Since gold loans are secured, gold loan interest rate on them are cheaper than personal loans and credit cards, more so if the borrower has a strong credit record.

Gold loan is the fastest-growing personal loan segment thanks to the ease of borrowing money against gold jewellery. While some banks still require prospective borrowers to visit their branch to avail a gold loan and pledge their jewellery, many lenders such as IIFL Finance have adopted a fully digital process.

Gold loans from IIFL Finance come with attractive terms to help one raise funds instantly. 

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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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