Introduction: What Is a Gold Loan?
A Gold Loan is a secured loan where you pledge your gold ornaments or coins as collateral in exchange for immediate cash.
You get a percentage of the gold’s market value — called Loan-to-Value (LTV) — usually up to 75% of the gold's worth.
✅ Quick disbursal
✅ No income proof required
✅ Lower interest rates than personal loans
Who Should Take a Gold Loan?
People with urgent financial needs
No income proof or CIBIL score
Farmers, homemakers, small business owners
Those who want to avoid taking personal loans
Gold Loan vs Personal Loan
| Feature | Gold Loan | Personal Loan |
|---|---|---|
| Type | Secured (Gold as collateral) | Unsecured |
| Interest Rate | 8% – 16% p.a. | 11% – 24% p.a. |
| Approval Speed | Within a few hours | 1–3 days |
| Credit Score Need | Not mandatory | Mandatory |
| Loan Amount | Depends on gold value | Depends on income |
Gold Loan Eligibility
Age: 18 to 70 years
Must have gold jewelry or coins (purity 18–24 karats)
No specific income or job requirement
Documents Required for Gold Loan
Aadhaar / PAN Card / Voter ID
Passport-size photos
Proof of ownership of gold (if asked)
Bank account details (for disbursal)
How Is Gold Loan Amount Calculated?
The loan amount =
🟨 Weight of your gold (in grams) ×
🟨 Purity (karat) ×
🟨 Current market rate of gold ×
🟨 Loan-to-value ratio (up to 75%)
🧮 Example: If your gold is worth ₹1,00,000 and LTV is 75%, you can get up to ₹75,000.
Repayment Options
EMI Option – Pay monthly principal + interest
Bullet Repayment – Pay full amount at the end of term
Interest-Only – Pay only interest monthly, principal later
Interest Rates (2025)
NBFCs & Banks: 8.5% – 16% per annum
Private lenders may charge higher
Vizzve Gold Loan Partner Rate: As low as 9.5%*
💡 Rates depend on lender, gold quality, and repayment term.
Risks & Precautions
❌ If you don’t repay, your gold can be auctioned
❌ Some lenders charge processing fees, insurance, storage fees
❗ Always verify lender's license (RBI or NBFC-registered)
Why Choose Vizzve for Gold Loans?
💰 Instant approval
🔐 Secure locker storage
📉 Lower interest rates
📞 24x7 customer support
🏦 Tie-ups with top RBI-registered NBFCs
🛡️ Your gold stays safe. Your money comes fast.
FAQs
Q1: Can I get a gold loan without a CIBIL score?
✅ Yes, credit score is not mandatory.
Q2: What happens if I miss gold loan payments?
⚠️ You may lose your gold after a grace period if you don’t repay.
Q3: Can I pre-close my gold loan early?
✅ Yes. Most lenders allow it with minimal or no charges.
Q4: Can housewives or unemployed individuals apply?
✅ Yes, as long as they have gold to pledge.
Published on : 22nd July
Published by : SMITA
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RBI-Registered Loan Partner | 10 Lakh+ Customers | ₹600 Cr+ Disbursed