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Gold loans are among the fastest and most accessible forms of secured credit in India.
Whether you are facing an emergency or looking to fund a personal expense, pledging your gold assets can help you obtain emergency funds without selling your prized possessions.
Understanding the gold loan procedure ensures that borrowers, especially first-timers, can approach the process with clarity and confidence.
This guide explains how the gold loan process works, who is eligible, what documents are required, and how to obtain a gold loan instantly.
What Is a Gold Loan?
A gold loan is a secured loan where borrowers pledge their gold ornaments (typically 18-24 karats) as collateral to get the required funds.
The lender evaluates the gold’s purity and weight, then disburses a loan amount based on its market value. Once the borrower repays the loan (along with applicable interest), the gold is returned to the primary owner (borrower).
Step-by-Step Gold Loan Procedure
Here’s a simple breakdown of the gold loan process followed by most lenders in India:
- Visit the Branch : Walk into a nearby lender’s branch or use their digital platforms for an appointment.
- Gold Evaluation: The lender weighs and tests the purity of your gold in your presence to calculate an approximate loan amount.
- Loan Offer & Approval: Based on the final evaluation of gold purity and weight, a loan amount is offered, usually up to 75% of the gold’s market value (as per RBI regulations).
- Document Submission: You need to submit basic KYC documents to validate your gold ownership and personal information (details below).
- Loan Agreement: Once completed, you will need to sign a simple agreement that outlines the terms of repayment, interest rate, and tenure.
- Loan Disbursal: Finally, the loan amount is credited to your bank account or given as cash (within RBI limits).
- Gold Storage: The pledged gold is stored securely in vaults until the lender receives full repayment.
Note: The actual gold loan procedure may vary slightly based on the lender’s policies and whether the loan is taken online or at a branch.
Eligibility Criteria for a Gold Loan
Anyone who meets the following basic criteria can apply:
- Must be an Indian citizen above 18 years of age.
- Should own gold jewellery (coins and bars are accepted by some NBFCs).
- Must have valid KYC documents (address and income proof).
Documents Required for a Gold Loan
Most lenders ask for only a few basic documents -
- Identity Proof: Aadhaar card, Voter ID, Driving Licence, PAN card, or Passport
- Address Proof: Utility bills, Aadhaar, Voter ID, Driving Licence Passport, or Rent agreement
- Photograph: Recent passport-size photo
- PAN/Form 60: Required for loans above ₹5 lakh or as per income tax norms
An Income proof may also be required for gold loans, according to the new RBI guidelines. However, this may vary depending on the loan amount, purpose of the loan, and other factors.
Therefore, you should verify with your lender to ensure that you submit the proper documentation.
How to Get a Gold Loan from Manappuram Finance?
Manappuram Finance Limited is one of India’s most experienced and trusted names in the gold loan sector. It is one of India’s leading gold loan NBFCs regulated by the Reserve Bank of India.
At the branch:
- Visit your nearest branch of Manappuram Finance Ltd.
- Carry your gold ornaments and valid identification, and address proof.
- Get your gold evaluated, submit your documents for verification, and get the loan disbursed instantly.
- Pay interest only for the exact number of days the loan is active (daily interest calculation).
Online:
- Use Manappuram’s Online Gold Loan (OGL) facility.
- Withdraw funds 24/7 from anywhere*, using mobile or internet banking linked to your loan account.
- Monitor loan status, interest dues, and repayment history digitally.
Manappuram Finance Limited offers gold loan schemes tailored for different income levels, with transparent charges and instant processing.
Your pledged gold is stored securely and fully insured till the final repayment at the end of the tenure.
Conclusion
A gold loan is a quick and reliable way to meet urgent financial needs without having to sell your gold.
By understanding the gold loan procedure, knowing your eligibility, and choosing a trusted lender, you can ensure access to instant funds with minimal hassle.
Institutions like Manappuram Finance Limited offer both in-branch and digital options, transparent terms, and secure storage, making them a practical choice for gold-backed borrowing.