Maximum And Minimum Gold Loan Limit In India
Gold loan is a secured and collateral type of loan, where a lender pledge the gold from the borrower and provide them loan. Read to know about the maximum and minimum limit for gold loan.
Gold has been a household metal in India since time immemorial. It is used as a security asset and has proven to be a saviour in times of need. According to a survey conducted by the India Gold Policy Centre (IGPC) at the Indian Institute of Management, Ahmedabad (IIM-A), more than 75% of Indian households agreed on owning gold in some form or other.
This article elaborates on gold loans and their minimum and maximum limit in India.
What Is A Gold Loan?A gold loan is a secured loan where you borrow money against the security asset–your gold jewellery/ornaments. You pledge your gold items to avail of the required funds in a gold loan. These loans are best suitable for shorter-term fund requirements.
What Are The Eligibility Criteria For A Gold Loan?
While gold loans are easy and quick, there are a few eligibility criteria that you need to know:
- Your minimum age should be 18 years. The maximum age depends from lender to lender.
- You should be a salaried, self-employed, business owner, farmer, trader etc.
- Your gold items must be in the purity range of 18 to 24 carat. If it’s a minted gold coin, it should be 22 carats.
- You need to submit your identification documents like Aadhar Card, Pan Card, Utility bills, and any other as prescribed by the lender for KYC verification.
What Is The Minimum and Maximum Limit To Avail Of A Gold Loan In India?You can avail of gold loans in India from an NBFC or a bank at an interest rate of 7-29%. The loan amount depends on the gold pledged quality and the Reserve Bank of India (RBI). RBI permits 90% of the pledged gold to sanction as the loan amount.
While there is not a minimum limit on the gold loan, you can avail of a maximum loan of up to INR 1.5 crore with a repayment tenure ranging between one month to 4 years, depending on the lender.
Frequently Asked Questions
Q.1: What are the minimum and maximum gold loan limits in India?
Ans: While there is not a minimum limit on the gold loan, you can avail of a maximum loan of up to INR 1.5 crore with a repayment tenure ranging between one month to 4 years, depending on the lender.
Q.2: Why should one opt for a gold loan?
Ans: A gold loan is beneficial in case of short-term fund requirements. It is a quick and easy way to fulfill your short-term and small economic needs.