• What is a gold loan?
A gold loan is a secured form of loan where you can provide collateral in the form of gold articles, in exchange for an amount that is determined by the current market value of your gold.
• Who can avail a gold loan?
Any citizen of India, between the age of 21 and 70 years, and is either a salaried or self-employed individual, can apply for a gold loan.
• Can I prepay the loan amount?
This feature varies between each lender, where some allow you to pre-pay the loan amount with no additional charges while others may levy a fee for this service.
• What will happen if I am unable to repay the gold loan amount?
In most cases, the lender will charge an overdue fee over the gold loan amount. However, if you’re still unable to repay the amount, the collateral you’ve pledged will be auctioned.
• Is a guarantor necessary for a gold loan?
No, a guarantor is not required to avail a gold loan.
• Is my gold secured if I avail a gold loan?
Yes, the gold pledged by you as collateral would be highly secure with the lenders since the articles are kept under electronic surveillance. Lenders also offer insurance for the gold deposited with them.