Gold Loan Companies in India:- Whenever we think of taking a loan that can provide us with good loan benefits and also has fewer insecurities and hurdles, we think of gold loans.
Gold is considered a very valuable asset in the country and is used for multiple purposes such as weddings or other special occasions.
It is valuable not only due to its price in the market but also because we consider it as a part of our culture. Indeed gold has been used by people to take cash loans from merchants and lenders in case of emergency for centuries.
But taking out loans against gold was not that easy at that time. In that period, only pawnbrokers and jewelers used to offer cash loans against gold assets.
Due to the less availability of loan providers at that time, they used to charge excessive and inappropriate interest rates from the lenders.
The high-interest rates made borrowers unable to repay the loan amount and pledge the gold back. But that’s not the case now.
Currently, there are a large number of gold loan companies in India that offer high amounts of cash loans against loan assets.
They offer reasonable rates and offer flexible loan repayment tenure that has made things easy for the needy.
On the other hand, due to so many gold loan providers in the country, it has been quite difficult to select the best one.
To help you with that, we are here with this article of the top 10 gold loan companies in India.
We also found it difficult to select the best from their features and services are subjective.
After going through the complete article, you will be able to choose the best company for your gold loan according to your requirements.
What is a gold loan?
Some of you might be taking a gold loan for the first time. So it becomes important for us to inform you about what a gold loan exactly is and how it works.
A gold loan is a type of secured loan in which banks or lenders provide you with cash loan benefits against your gold asset.
To get a gold loan, you need to deposit your gold asset to the bank or lender. After the successful evaluation of your gold asset i.e. ornament or jewelry, you will be provided a lump-sum amount of your gold value.
In gold loans, you get a long repayment tenure and less interest rate.
Some common features of gold loans
- High-loan amount
- Fewer interest rates
- Long repayment-tenure
- Easy eligibility criteria
- Minimal documentation
- Quick loan disbursal
Also Read: SBI Gold Loan – Everything you need to know
Top 10 gold loan companies in India
Please find the top 10 gold loan NFCS in India. The list is made by Loan247.
#1. Muthoot Finance Ltd.
When it comes to gold loans, most people think of Muthoot finance because it is considered the best gold company in India.
It has more than 4,265 branches in the country spread in 21 states and 4 Union Territories.
Muthoot finance offers gold loans up to 1 Crore with superfast processing of the loan amount.
The company charges interest rates up to 11.99% per annum depending on the gold loan amount.
Also, it offers you flexible loan repayment tenure of 36 months that can be extended with mutual agreement.
To get a loan against your gold from Muthoot finance, you just need to complete the simple application process and submit some basic yet important documents.
Once your application is approved, the loan amount is likely to get disbursed to your linked bank account within just 5 minutes.
The hassle-free processing and high loan amount bring it to our list of the top 10 gold loan companies in India.
#2. Manappuram Finance Ltd.
On the second rank on our list of the top 10 gold loan companies in India, Manappuram finance makes its way.
With more than 3,200 branches across different states of the country, it has established itself as a well-known financial institution.
The major features provided by Manappuram ltd. include fast loan processing, high-loan amount, and easy accessibility. From Manappuram finance, you can apply for a cash loan up to 1 Crore against your gold asset quite easily.
The interest rates charged are up to 12% with a maximum loan repayment tenor being 12 months.
However, the tenure can be extended after a mutual agreement.
To avail of a loan against your gold from the company, you just need to fill the simple form, either online or offline, and submit the required documents.
A representative from the company will get in touch with you regarding the loan and will visit you to evaluate the value of your gold asset.
After that, if all goes well, your loan amount can be approved and disbursed within 5 minutes.
#3. HDFC Gold loan
HDFC gold loan is considered one of the most reliable gold loan companies in India.
With its improved amendments, the loan amount can now be approved and sanctioned within just 45 minutes.
That makes HDFC banks great for emergency cases.
The interest rates on your loans start from 9.90% per annum onwards depending on your loan amount.
One thing that can be pointed out as the CON of the company loan procedure is its additional processing charges which are 1.50% of the total amount plus taxes.
The minimum loan amount availed from the bank is INR 50,000 while there is no maximum limit. The loan tenure is from 3-24 months.
You can apply for a gold loan from the HDFC bank quite easily either offline or online. You will be required to submit a few government verified documents so keep them ready.
#4. IIFL Finance gold loan
On our list of the top 10 gold loan companies, IIFL finance gold loan comes with a very good reputation.
The gold loan company seems to be perfect if you are looking for instant loans at reasonable rates and flexible tenure.
The interest rates start from 9.24% onwards depending on your loan amount and the loan tenure provided is from 3 to 11 months.
To get a loan against your gold asset from the company, all you need to do is to visit its nearest branch with your gold asset and the required documents.
That’s all! The company employee will evaluate the gold value and verify your submitted documents.
If all goes well, your loan amount will be disbursed to your bank account within 40 minutes.
#5. SBI gold loan
SBI is the biggest public sector bank in India with the most number of branches across the country.
SBI offers high amounts of loans to consumers at reasonable interest rates with a quick disbursal procedure.
From SBI, you can avail up to 50 lakh of loan amount with interest rates starting from just 7.50% per annum onwards and extensive loan tenure of 36 months.
There is also a special category of gold loans offered to farmers in rural areas.
The loan applying procedure is quite similar to that of opening a new account in the bank.
Also Read: SBI Gold Loan – Everything you need to know
#6. ICICI Bank gold loan
You can get a high amount of loan up to 1 Crore from ICICI bank at reasonable interest rates starting from 10% per annum onwards.
The loan repayment tenure is from 3 to 24 months with 1% as the processing charges and INR 199 as documentation charges.
The quick sanctioning of the loan which is just about an hour has made it one of the top 10 gold loan companies in the country on our list.
Gold loans are backed by the government of India so your gold will be kept secure for sure.
#7. Kotak Mahindra gold loan
Kotak Mahindra is a well-known gold loan company in the country.
It provides a high amount of loans against your gold asset at reasonable rates for a decent tenor of 12 months, which can be extended with mutual agreement.
You can get up to 25 lakh from the bank with an interest rate starting from just 10.50% per annum.
To get a loan from Kotak Mahindra against your gold, you must provide the bank with wearable gold ornaments and jewelry pure up to 18 Karat to 24 Karat.
#8. Axis Bank gold loan
Axis bank is a private bank certified by the RBI that offers a high amount of loan against your gold with reasonable interest rates.
The bank offers you loan amount up to 25 lakh with low-interest rates starting from just 13% per annum onwards.
You will get a tenure of 36 months to repay the loan amount.
You can get your loan amount disbursed to your bank account on the same day as filing the application on special requests in case of emergencies.
Points that put the bank on our list of the top 10 gold loan companies in India are its superior customer services and transparent procedures.
#9. Canara Bank gold loan
Canara Bank is another private sector bank that offers loan amounts up to 20 lakh against your gold asset.
Canara Bank gold loan is widely popular as Swarna Loan in the country.
You will get a flexible loan tenure of 2 years on your loans from Canara Bank with interest rates starting from 7.65% per annum on your gold loans.
The processing charge is 0.25% of the total loan amount.
#10. Federal Bank gold loan
You can get hassle-free gold loans from Federal Bank worth up to 1.50 Crore along with reasonable interest rates starting from 8.50% per annum and flexible loan tenure starting from 6 months.
The bank charges no hidden fees and has very low processing charges that make it easy to go for your gold loan without hesitating too much.
To get a loan from the bank, all you need to do is to visit the nearest branch of the bank with your gold asset and the required documents.
Features of gold loan
When you take a gold loan from a bank, you open yourself to a number of features and benefits.
Different banks provide you with different features on the gold loan.
To make it convenient for you, we have arranged the major features provided by the banks in common in gold loans.
The major features that banks offer you in gold loan schemes are as follows.
1. Fast processing
As we mentioned above that gold loans are secured loans, the eligibility criteria become quite simple.
Also, you need not submit heavy documents to the bank to get the loan benefits.
Because of these reasons, the loan disbursal process is quite fast that gives a major benefit to the applicants as well as the lending banks.
2. Loan for different purposes
Gold loans are kind of personal loans also because they allow you to meet all your personal expenses.
With the help of a loan against your gold, you can meet your travel expenses, pay your educational charges, medical charges, or meet wedding expenses.
You can also clear your past remaining debts with the help of gold loans.
3. Low-interest rates
A big feature that you get with gold loans is the interest rate they charge.
Gold loans are secure. So they involve less security so they charge less interest rate from you as compared to any other unsecured loans.
Also, you can take loans against gold from banks for the priority sector as well as the agricultural sector.
4. Low processing charges
Unlike the other unsecured loans, you will have to pay a very small processing fee to the banks to disburse the amount into your bank account.
Some banks even do not charge any processing fees from you when you apply for a gold loan.
5. No income proof and credit score
The eligibility criteria for taking a loan against a loan are very simple.
Unlike the other unsecured loans, you need not provide the bank with income proof such as your salary receipt and bank statements.
Also, there is no impact of credit score on your loan disbursing process.
If you have provided the bank with high-quality gold assets, you can get a very high amount of loans with minimal documentation.
6. The high amount and easy accessible
Against your pure gold, you can take a very high loan amount from the bank quite easily.
Also, the loan processing and disbursing process are around the simplest of all.
How does a gold loan work?
You have come across the introduction and features of gold loans. Now, you would be thinking of how the process goes.
Well! We have divided the whole process into 6 simpler steps so you understand the process in a better way.
1. Check the eligibility of the gold accepted
At the very first step, you need to check which type of gold assets the banks accept for gold loans.
A major part of banks provides gold loans only against gold jewels.
However, some banks also offer it against gold ornaments or in other forms.
Also, you need to make sure that the gold purity lies between 18 Karats to 22 Karats.
2. Verify the loan eligibility and select a bank
In the second step, you will be checking the loan amount eligibility.
The loan eligibility against gold is calculated with the help of weight, LTV ratio, market rate, and purity of the gold you are providing.
You should always go for a bank that is providing you with high loan amounts at low-interest rates, processing charges, and foreclosure charges.
3. Apply for a gold loan in the bank
Now you have selected your bank, you need to apply for a loan against your gold from that bank.
You can either apply for the loan from the bank online by visiting their official website or offline by visiting the nearest bank branch.
After your application, a bank representative will get in touch with you soon to confirm the application details and to fix an appointment.
4. Document verification
To get any kind of legal loan in the country, you need to provide the lender or bank with copies of some documents that verify you as a legal and eligible person for the loan.
In gold loans, you might need to submit KYC documents such as your address proof and identity proof.
Also, you need to submit the gold at the same time for verification in the next process.
5. Gold purity evaluation
Once you submit the gold asset to the bank, there will be a gold purity evaluation to check the purity of the gold.
After the process, the estimated value of the gold will be finalized according to its weight and the market value.
6. Loan disbursal
If you have provided high-quality gold assets and legal documents to the banks.
The banks will approve your loan request within a very short period. After the application approval, your loan amount will be disbursed to your bank account within a few hours, even minutes.
The gold will be secured by the bank as per the RBI guidelines.
It is just the list of the top 10 gold loan companies in India, not all the companies.
There are so many more gold loan provider companies in the country that offer amazing services and offers on taking gold loans.
With so many options available, you should surely take advantage of your gold asset and use it in the right way.
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