Personal Gold Loans in India 2025
Personal Gold Loans are secured loans where you pledge gold ornaments or coins as collateral to access quick funds for personal needs. LoanPao partners with over 500 RBI-compliant banks and NBFCs to offer competitive gold loan schemes with fast disbursal and flexible repayment options.
What is a Personal Gold Loan?
A Personal Gold Loan is a financing option where you borrow money against the value of your gold, typically used for expenses like medical emergencies, education, weddings, or debt consolidation. The loan amount is based on the gold’s purity and market value, with repayment terms ranging from a few months to 3 years.
Benefits of Personal Gold Loans
Gold loans offer several advantages for borrowers:
- Quick Disbursal: Funds available within hours of gold valuation.
- Low Interest Rates: Rates starting from 8% p.a., lower than unsecured loans.
- Minimal Documentation: Requires only KYC and gold; no income proof needed.
- Flexible Repayment: Options for monthly, quarterly, or bullet payments.
- Safe Storage: Gold is securely stored by lenders with insurance.
Eligibility Criteria
Gold loans have simple eligibility requirements:
| Criteria | Requirement |
|---|---|
| Applicant Age | 18-70 years |
| Collateral | Gold ornaments/coins (18-24 carat) |
| Loan Amount | ₹10,000 to ₹1 crore (based on gold value) |
| Documents | KYC (Aadhaar, PAN, or other ID/address proof) |
Loan Amount and Valuation
The loan amount depends on the gold’s weight, purity, and market value:
| Gold Purity | Loan-to-Value (LTV) Ratio | Approx. Loan Amount (per gram) |
|---|---|---|
| 22 Carat | Up to 75% | ₹4,000-₹5,000 |
| 20 Carat | Up to 70% | ₹3,500-₹4,500 |
| 18 Carat | Up to 65% | ₹3,000-₹4,000 |
Note: Loan amounts vary based on RBI guidelines and lender policies.
Interest Rates for Personal Gold Loans
Interest rates depend on the lender and loan terms:
| Lender Type | Tenure | Interest Rate (p.a.) |
|---|---|---|
| Public Sector Banks | 6 months-3 years | 8-10% |
| Private Banks | 6 months-3 years | 9-12% |
| NBFCs | 3 months-2 years | 10-14% |
Note: Rates are indicative and subject to change. Use LoanPao’s EMI calculator to estimate repayments.
How to Apply for a Personal Gold Loan with LoanPao
Follow these steps to secure a gold loan:
- Compare Loan Options: Explore gold loans from 500+ RBI-compliant lenders on LoanPao.
- Check Eligibility: Ensure you have gold (18-24 carat) and KYC documents.
- Apply Online: Fill out the application form on our platform.
- Gold Valuation: Visit the lender’s branch for gold appraisal or opt for doorstep valuation (if available).
- Submit KYC: Upload Aadhaar, PAN, or other ID/address proof.
- Loan Disbursal: Receive funds within hours post-valuation and approval.
Why Choose LoanPao for Personal Gold Loans?
LoanPao makes gold loan financing seamless:
Trusted Lenders
Connect with 500+ RBI-compliant banks and NBFCs.
EMI Calculator
Plan repayments with our EMI calculator.
Secure Process
Safe application and gold storage with trusted lenders.