Gold Loan for Business

LoanPao’s guide for India 2025 helps business owners secure gold loans to meet funding needs. By pledging gold as collateral, you can access quick capital for working capital, expansion, or operational expenses without lengthy approval processes.

What is a Gold Loan for Business?

A gold loan for business is a secured loan where you pledge gold ornaments or coins as collateral to obtain funds for business purposes. It offers quick disbursal, competitive interest rates, and flexible repayment options, making it ideal for small and medium enterprises (SMEs).

Benefits of Gold Loan for Business

Quick Disbursal

Funds are disbursed within hours, ideal for urgent business needs.

Low Interest Rates

Secured loans offer rates as low as 10–12% p.a. compared to unsecured business loans.

No Credit Check

Approval based on gold value, not credit score, aiding businesses with poor credit.

Eligibility Criteria

Criteria Details
Age 21–70 years
Business Type Proprietorship, partnership, or MSME
Gold Purity 18–24 carat gold ornaments or coins
Loan Amount ₹50,000 to ₹1 crore, based on gold value

Documents Required

  • Identity Proof: Aadhaar, PAN, or Passport
  • Address Proof: Utility bill, rental agreement, or Aadhaar
  • Business Proof: GST registration, trade license, or Udyam certificate
  • Gold Ownership Proof: Purchase receipt (if available)

How to Apply

  1. Visit LoanPao’s application page or contact +91-971-769-5334.
  2. Submit your gold for valuation at a partnered lender’s branch.
  3. Provide required documents for verification.
  4. Sign the loan agreement after approval.
  5. Receive funds within hours via bank transfer.

Compare Gold Loan Providers

Provider Interest Rate (p.a.) Loan Amount Tenure Processing Fee
Bank A 10.5–12% ₹50,000–₹50 lakh 3–36 months 0.5–1%
NBFC B 11–14% ₹1 lakh–₹1 crore 6–24 months 1–2%
Bank C 10–11.5% ₹75,000–₹75 lakh 3–48 months 0.25–0.75%

Note: Rates and terms are indicative and subject to change. Contact LoanPao for the latest offers.

How LoanPao Can Help

LoanPao simplifies your gold loan journey:

Trusted Partners

Connect with top banks and NBFCs for competitive rates.

EMI Calculator

Use our EMI calculator to plan repayments.

Expert Support

Get assistance at +91-971-769-5334.

Frequently Asked Questions

Gold ornaments or coins of 18–24 carat purity are accepted. Gold bars may be accepted by some lenders.

Yes, funds can be used for working capital, inventory purchase, expansion, or other business needs.

The lender may auction your pledged gold to recover the outstanding amount. Ensure timely repayments to avoid this.

The loan amount is based on the gold’s market value and purity, typically 70–80% of the appraised value.

Gold loans offer faster disbursal and lower rates but are limited by gold value. Traditional loans may provide higher amounts but require more documentation.