Digital Gold Loans in 2025

Banks offer gold loans, where you pledge physical gold and get a loan based on its current value. Often, this requires multiple visits to the branch for verification and approval. Digital gold loans allow you to borrow money against physical gold, and the loan application process is completed online. Some lenders may need you to visit the branch once for gold assessment, while other lenders may collect the gold from your doorstep. Keep reading to learn about the latest trends in digital gold loans.

A digital gold loan allows you to take a loan against your gold jewellery without going to a bank or an NBFC physically. Everything, from submitting the application to receiving the funds, is done online, which makes the process swift and convenient.

Similar to other types of digital loans, you can apply for a digital gold loan online. The entire process happens online, so you can get a secured loan against gold jewellery, coins, or bars from the comfort of your home. 

When you choose to get a gold loan online, you can compare loan offers from multiple lenders. This way, you can find a lender who offers a higher loan amount. The repayment can also be completed online.

A few lenders may collect gold from your doorstep for much easier loan processing. Once you pay off the entire loan, you can visit the branch to collect the gold. 

Digital gold loans have numerous advantages, making them a good borrowing option:

• A digital gold loan provides you with quick access to funds compared to traditional gold loans due to the digitalisation involved in the loan application process.

• Digital application has minimal manual paperwork. 

• Select a payment term that is convenient for you. You can pay back as a bullet payment at the end of the tenure or pay EMIs. 

• Interest processing fee rates are all known beforehand. There are no hidden charges.

• Pay EMIs through UPI, net banking, debit card, or wallets.

• Applying for a gold loan doesn't require a good credit score.

• Employed and self-employed persons can apply without producing proof of salary vouchers or proof of business income.

• Interest rates are lower than personal loans or credit cards because it's a collateral-based loan.

• A few lenders also permit partial payments to lessen the total burden on the loan.

The eligibility criteria are minimal. You must be 

• An Indian citizen

• Above 18 years of age

You can use your physical gold to get a loan, and the loan amount is based on the gold value.

On  Bajaj Markets, getting a digital gold loan involves only a few simple steps:

1. Enter your personal details and your mobile number on the form to get OTP. 

2. Once the mobile number is verified, enter the loan requirements. 

3. Compare the loan options from various lending partners. 

4. Choose the gold loan option that you like. 

5. Proceed with the gold assessment with the lender of your choice. 

6. Get the loan disbursed to your account. 

As a digital gold loan is a secured loan, the interest rates are minimal compared to personal loans. Depending on the lender, it can vary from 8.88% to 11.88% based on the value of the gold.

Digital gold loans are becoming more popular as technology improves and borrowers seek faster, more convenient credit options. Here are the key trends shaping this space in 2025.

• Growing Preference for Digital Transactions: With more people relying on digital platforms for financial services, applying for a gold loan online has become the preferred choice. The entire process, from valuation to disbursal, is now seamless and paperless.

• Instant Loan Approvals and Faster Processing: Lenders use AI and automation to approve loans in minutes. Borrowers can apply, verify documents, and receive funds without visiting a branch, making the process faster.

• Rising Demand for Quick and Easy Credit: Unexpected expenses often require immediate cash solutions. Digital gold loans provide immediate cash without complex documentation, making them attractive for urgent financial needs.

• Increased Competition Among Lenders: Banks and NBFCs are expanding their gold loan offerings to stay competitive. This benefits borrowers with lower interest rates, flexible repayment options, and improved customer support.

• Enhanced Transparency and User Experience: Financial institutions focus on real-time loan tracking, instant notifications, and clear terms. Borrowers can monitor their gold loan status, repayments, and interest rates with ease.

• More Flexible Repayment Options: Lenders offer customised repayment plans, allowing borrowers to choose EMIs that suit their financial situation. Some institutions even provide no-cost foreclosure options for paying off gold loans before the original tenure.

Ensuring the security and safety of digital gold loans involves multiple aspects:

• Regulatory Oversight: The RBI has established comprehensive regulations for loans against gold ornaments and jewellery to promote transparency and protect both lenders and borrowers. SEBI, along with the finance ministry and RBI, is working to bring digital gold under regulatory oversight to ensure investor protection and market integrity. ​

• Vault Storage: The gold that the borrower pledges is safely stored in insured vaults managed by trusted custodians. This ensures the physical safety of the gold. 

• Advanced Security Measures: Lenders employ robust security protocols, including encryption and secure online platforms, to protect user data and transaction integrity.

• Transparent Transactions: Digital loans maintain a digital trail of documents and receipts, enhancing transparency and reducing the risk of fraud.

• Cooling-Off Periods: RBI mandates a cooling-off period, allowing borrowers to exit digital loans if they choose not to proceed, enhancing consumer protection.

Here is a brief comparison between a digital gold loan and a conventional gold loan: