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Gold loans online
Need fast cash to tide through a financial emergency? Learn how you can apply and pay for gold loan online.
With a spike in COVID-19 cases and lockdown restrictions, walking into branches of financial institutions to apply for a gold loan is no longer as convenient as it was before. Fortunately, more lenders are now helping customers avail gold loans via a digital route.
Find out more about how online gold loans work in detail below.
Compare a range of Gold Loans in India
We update our data regularly, but information can change between updates. Confirm details with the provider you're interested in before making a decision.
How does an online gold loan work?
Gone are the days when you have to visit a physical branch personally, endure long queues, fill in multiple paper forms or wait for days on end for loan approval.
With an increasing number of Indian lenders digitising their loan application process, borrowers can now get a gold loan at the comfort of their home.
The process for loan applications may vary from lender to lender, but taking out a digital gold loan usually consists of the following steps:
- Apply for a new loan. Most lenders will have an ‘Apply now’ button on their website. Simply provide your mobile number and other required information. A company representative will get in contact with you and guide you through the loan process.
- Door-step evaluation. The lender will arrange for a loan manager or company representative to your address for on-the-spot evaluation of your gold jewellery. After evaluation, you’ll be offered a credit amount. This entire process usually takes less than 30 minutes.
- Receive loan proceeds. If you’re agreeable with the amount and terms, the approved credit will be transferred to your bank account.
- Gold delivered to a secure storage facility. Once the money has been transferred to your account, the representative proceeds to pack your gold ornaments in secure packages, which will be transported to a secure vault.
Features of online gold loans
Online gold loans come with a handful of distinctive features, including:
- Convenience. Applying for a gold loan online is paperless, hassle-free and time-efficient. Depending on the lender, you may not even need to visit a physical branch in-person to complete the gold appraisal and loan process.
- Privacy. Customers who aren’t comfortable with being seen availing a gold loan in a public location can certainly benefit from a scheduled visit at their preferred location (offered by selected lenders only).
- Minimal documentation. You’ll only be required to provide your ID and proof of residential address. Unlike other loan types, there’ll be no need for documentation such as income certificates, bank statements and tax returns (ITR).
- Low fees. Most online gold loan providers offer a transparent process with no hidden fees to look out for.
- Fast turnaround. As lenders move towards a digital application and evaluation process, borrowers may receive their funds in as little as 30 minutes after approval.
- Online repayment. You can make payments for your gold loan instalments through an online platform or mobile app.
- Easy loan estimation. Most lenders have a gold loan calculator on their website which can provide you with a fair idea of a gold loan per gram.
How do I pay a gold loan online?
With the advancement in technology, most banks and NBFCs now offer online portals and digital payment gateways that allow borrowers to settle their loan instalments without any extra cost. As long as you have access to the Internet, you’d be able to make speedy repayments at your convenience.
Acceptable payment modes are typically direct bank transfer and debit card payments. However, do note that most lenders are unable to accept loan repayments with a credit card.
Fees and interest rates for online gold loans
Understanding the costs and interest rates associated with an online gold loan can help you figure out which one to choose. These details are not always advertised upfront when signing for a loan, so be sure to read the fine print and check with the lender directly.
Online gold loan fees
These are the common fees associated with gold loans:
- Processing fee. Loans often come with a processing fee, which typically ranges from 1% to 2% of the disbursal amount.
- Gold appraisal charges. Some lenders charge a fee for the appraisal of your gold ornaments, which will be indicated at the time of application.
- Closure charge. A nominal loan closure penalty ranging from Rs. 0 to Rs. 150 may be imposed if you close the loan within a short period after availing (e.g. less than 3 months).
- Mark-to-market (MTM) charges. MTM is an accounting practice of valuing financial assets in line with their market value and not at cost. Some lenders may charge an MTM fee to protect themselves from depreciated prices of the gold collateral.
Online gold loan interest rates
To help you make an informed decision, here are the gold loan interest rates from some of the top online gold loan providers in India as of 25 May 2021:
|Provider||Interest rates (p.a)||Loan amount||Tenure||More|
|SBI Gold Loan||7% to 7.50%||Rs. 20,000 to Rs. 50 lakh||Up to 36 months||SBI Gold Loan details and review|
|IIFL Gold Loan||9.24% to 24%||Rs. 3,000 onwards||3 to 11 months||IIFL Gold Loan details and review|
|Manappuram Gold Loan||17% to 26%||Rs. 1,000 to Rs. 1.5 crore||3 months||N/A|
|Kotak Mahindra Gold Loan||10% to 17% p.a||Rs. 20,000 to Rs. 1.5 crore||Up to 4 years||N/A|
Note: The information provided is accurate as of 25 May 2021 and is subject to change at the sole discretion of providers.
What companies offer gold loans online?
These are some popular lenders that allow you to avail gold loans online:
- State Bank of India (SBI)
- IIFL Finance
- Manappuram Finance
- Kotak Mahindra Bank
- Muthoot FinCorp
- Bajaj Finserv
- Indian Overseas Bank (IOB)
How to apply for a gold loan online
Applying for a gold loan online is easy and can typically be completed within minutes.
To get started, simply head over to the lenders’ website and fill in the online application form. Provide your personal details and the required documentation to proceed. The lender will then get back to you on how to proceed with the rest of the gold loan application.
Depending on the lender, you’d either need to schedule a home visit with an authorised loan manager or visit a physical branch in-person.
The eligibility criteria vary among lenders, but you’d generally need to:
- Be an Indian resident
- Be between 18 to 70 years of age
- Be the owner of the gold jewellery you are depositing
- Be an individual (singly or jointly)
- Have a steady source of income
You’ll typically be required to submit any of the following identity documents when taking out a gold loan:
- Valid passport
- Valid driving license
- Voters’ ID card
- Aadhaar card
- PAN card or Form 60
- A passport size photograph
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