What is a Digital Gold Loan?
A digital gold loan is a type of secured loan in which you pledge your gold jewellery and borrow a loan against that gold. Since there is no physical paperwork involved and everything is done online, it is known as a loan against digital gold. Whenever a financial emergency arises, a digital gold loan is one of the most sought-after options that people turn to. It is quick, stress-free, and involves almost zero paperwork. Plus, once the pledged gold is thoroughly evaluated by the lender, the digital gold loan amount is disbursed via a digital payment mode.
Features of Digital Gold Loan
A digital gold loan allows you to pledge your gold assets as collateral and borrow money against it without having the need to submit it physically. It’s a secure, transparent and completely online process to access funds instantly. Here are the key features of a loan against digital gold:
- Instant disbursal: Once the loan is approved the funds are credited within minutes.
- No physical verification: Entire process is paperless and digital.
- Flexible loan amounts: Borrow as per the value of your digital gold.
- Competitive interest rates: Often lower than unsecured personal loans.
- 24x7 availability: Apply anytime, anywhere using your mobile or computer.
Documents Required to Avail a Digital Gold Loan
While availing a loan against digital gold, the biggest advantage is that it is an entirely online process with absolutely minimal paperwork. Just a few KYC documents will be required such as:
- PAN Card
- Aadhar Card (preferably linked with the registered mobile number)
- Bank Account details to receive the funds
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Apply NowProcess of Applying for a Digital Gold Loan
Applying for a digital gold loan is a very quick process. Here’s a step-wise look at the process of availing a loan against digital gold.
Step 1: Login to the lender’s website
Step 2: Select the gold asset you wish to pledge in grams/kilograms
Step 3: Enter the loan amount and tenure as per your eligibility
Step 4: Use your Aadhar Card/PAN card and complete the e-KYC verification
Step 5: On approval, find the loan amount transferred to your bank account
Benefits of Digital Gold Loan
Availing of a loan against digital gold is not just for convenience. It has multiple benefits making it one of the most preferred options for instant access to funds. They include:
- Retaining ownership of your prized asset without having the need to liquidate gold.
- Instant approval and quick disbursal, especially whenever there is an emergency.
- Since it is a digital process, you don’t have to physically visit the branch or run around for the paperwork
- Thoroughly safe and secure as it is backed by strict encryption from regulated platforms.
- Comes with flexible repayment options wherein you can choose the tenure and EMI as per your preference.
FAQs
Q.1. What is a digital gold loan?Ans. A digital gold loan is a type of secured loan which lets you pledge your gold ornaments online as a collateral to borrow money. Since you are pledging the gold, there is no need to sell it.
Q.2. How do I apply for a digital gold loan?Ans. To apply for a digital gold loan, log in to your preferred gold investment platform or lender’s app, select the gold to pledge and complete your e-KYC. The entire loan against digital gold process is online and hassle-free.
Q.3. What are the eligibility criteria for a digital gold loan?Ans. To receive a loan against digital gold, firstly you should own digital gold with a registered gold investment platform. Then there are some basic criteria such as you need to be an Indian resident and have valid KYC documents such as PAN card and Aadhar card.
Q4: How is the loan amount determined in a digital gold loan?Ans. The digital gold loan amount is based on the current market value of your pledged digital gold. IIFL finance offers up to 75 percentage (loan-to-value ratio) of the gold’s worth.
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Apply NowDisclaimer: 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.
