Gold Loan

Gold loan is a type of secured loan. It is a new and trending concept in Indian loan sector. Many people in India own gold as it is considered as a symbol of success and fortune. Often people do not use gold ornaments regularly and they are kept at home or in bank lockers for safety. But instead of keeping the gold ornaments there, you can mortgage them to a bank or an NBFC and get a loan against it with tempting interest rates. Keeping your gold ornaments as collateral for loan is known as 'Gold Loan'. It is the fastest way to get loan and is also very easy as it does not require a plethora of documents. Along with ornaments you can also keep gold coins as collateral. These gold loans are usually taken for short tenures as per the applicant's needs. The lenders design the repayment process and EMI's according to the borrower's needs. Gold loans are popular in urban as well as rural areas equally.

What are the features of HDFC Gold Loan?

  • OTC Spot Loan: Spot sanction over the counter product.
  • Safe & Secured: Unique triple layer security packing for gold jewellery and safely secured in Bank's locker.
  • Assessment by professional Assayers: Handling and Valuation of jewellery is done by valuer with long years of experience from well known jewellery house.
  • Minimal Documentation: Application Form and KYC documents. (PAN and KYC documents such as valid Passport/ Driving Licence /Voters ID card /Aadhaar Card).
  • Flexibility of offering: Customer has basket of variants viz Term Loan/ Overdraft/ EMI/Bullet Payment.
  • Insurance: Insurance cover for loan is available.
  • Gold loans are available to multiple number of people at the same time as they do not need many documents, eligibility criteria is minimum and even the process is easy & quick.
  • People from rural areas are offered special lower interest rates if they opt for a gold loan. In gold loan, gold itself is kept as collateral. Disbursement in gold loans often takes place within a few hours.
  • HDFC offers minimum of Rs. 50,000 loan amount against gold.
  • HDFC gold loan amount is decided on the gold's purity, market price of gold and its karats. If the gold ornaments you are keeping as collateral, contain precious stones, the loan amount is still determined on only gold & not the precious stones.
  • HDFC offers in house gold evaluation. Rejection in gold loan happens only if the borrower's CIBIL score is not strong enough.

What are the Eligibility Criteria to avail HDFC Gold Loan?

The borrowers do not need any hefty eligibility criteria to avail a gold loan via HDFC. The minimum eligibility criteria are given below:
  • The borrower should own gold.
  • The gold coin or ornament to be kept as collateral should be above 18 karats.
  • The borrower should have a steady income to pay off the loan on time.
  • The borrower should have a good CIBIL score.

What are the Documents Required to avail HDFC Gold Loan?

  • Neatly signed and filled HDFC gold loan application form.
  • Passport-size photographs.
  • Identity and signature proof - Passport, Pan card, Driving License, Voter ID card, Aadhar card, employee identity card in case of government employees.
  • Address Proof - Bank statement, Rent Agreement, Voter ID card, Ration card, Passport, Driving License, telephone/electricity/water/credit card bill or Property tax.
  • Two post dated cheques for security purpose.