Gold Loan Service
A gold loan is a secured loan provided by banks and financial institutions where gold items such as jewelry or coins are used as collateral. The lender provides a loan amount based on the value of the gold, and the borrower repays the loan in installments or as a lump sum, along with interest. Once the loan is fully repaid, the gold is returned to the borrower.
FAQ
Turn Your Gold into Instant Cash – Secure, Fast, and Convenient!
Gold loans are perfect for individuals looking for quick and easy access to funds without needing to sell their gold. If you need immediate liquidity and have gold assets, a gold loan offers a simple, fast, and low-interest borrowing option.
Who Can Benefit:
- Individuals needing funds for medical emergencies, education, or weddings
- Small businesses seeking short-term capital for growth
- Farmers requiring funds for agricultural purposes
- Homeowners financing repairs or renovations
Quick Disbursement:
Get your loan approved and disbursed within a few hours, ideal for urgent financial needs.Low-Interest Rates:
Gold loans typically come with lower interest rates compared to unsecured loans like personal loans or credit cards.No Credit Check Required:
Since the loan is secured by gold, credit score is less critical, making it accessible to those with poor credit history.High Loan-to-Value (LTV) Ratio:
You can get up to 75-90% of the gold's market value as a loan, depending on the lender.Flexible Repayment Options:
Choose from options like regular EMIs, interest-only payments, or lump-sum repayments based on your financial capability.Retain Ownership of Gold:
You can unlock cash while keeping your gold safe, which is returned once the loan is fully repaid.
Identity Proof:
- Aadhar Card, PAN Card, Passport, or Voter ID
Address Proof:
- Utility bills, Passport, or Rent Agreement
Gold Ownership Proof:
- Documents or receipts related to the gold items (if applicable)
Photographs:
- Passport-size photographs
Income Proof:
- Some lenders may ask for income proof depending on the loan amount and lender policies.
At Beginquest, we ensure that you unlock the maximum value of your gold with the most convenient loan terms. Here’s how we help:
Fast Processing:
We prioritize speed and efficiency, ensuring you get the loan amount disbursed within hours of application.Transparent Evaluation:
Our experts provide a transparent evaluation of your gold to ensure you receive the highest possible loan amount.Secure Storage:
Your gold is stored in secure, insured vaults until you repay the loan in full, guaranteeing complete safety.Loan Comparison:
We help you compare interest rates and terms across multiple lenders to find the best option for you.Assistance with Documentation:
Our team assists you with gathering and submitting the necessary documents, ensuring a smooth application process.Continuous Support:
We offer ongoing support, helping you with any adjustments or queries you have during the loan period.
Common Questions About Gold Loan
How is the loan amount determined for a gold loan?
The loan amount you receive depends on the market value of the gold you pledge. Lenders assess the weight and purity of your gold to calculate its worth. Generally, most financial institutions offer a loan-to-value (LTV) ratio of 75-90%. This means if your gold is valued at ₹1,00,000, you can receive a loan of up to ₹90,000. The higher the purity of your gold (usually 22-24 karats), the better loan terms you can secure. Lenders also consider market fluctuations in gold prices, which may impact the final loan amount.
What are the interest rates on gold loans?
Interest rates for gold loans can vary significantly depending on the lender, loan amount, and repayment tenure. Typically, gold loan interest rates range between 7% to 15% per annum. Secured by your gold, these loans tend to offer lower interest rates compared to unsecured loans like personal loans. The interest rate can also vary depending on the lender’s policies, the loan tenure, and the type of repayment scheme you select. Some lenders might offer seasonal discounts or lower interest rates for long-term borrowers or large amounts.
Is it possible to get a gold loan with a poor credit score?
Yes, your credit score plays a minimal role when applying for a gold loan. Unlike unsecured loans that heavily rely on your credit history, gold loans are secured by collateral—your gold. Since lenders have the security of your gold as backup, they are less concerned about your creditworthiness. This makes gold loans an excellent option for those with poor or limited credit history. However, keep in mind that timely repayment of your gold loan can still positively affect your credit score.
What is the usual tenure for repaying a gold loan?
Gold loan tenures are generally flexible and can range from a few months to a few years, depending on the lender’s policies. The typical repayment period spans from 6 months to 3 years. However, some lenders offer shorter or longer tenures based on the loan amount and repayment capacity of the borrower. You also have multiple repayment options, such as paying regular EMIs, repaying only the interest during the tenure, or making a lump-sum payment at the end of the loan term. This flexibility allows borrowers to choose repayment plans that fit their financial situation.