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Things you should know before getting a Gold Loan

10 Apr 2024

Gold has a huge significance in the Indian society. It is a trusted financial option with intrinsic emotional value. That's why the yellow metal has always been integral to our socio-economic fabric and key financial decisions. Hence, gold as coins or jewellery also forms an important part in the rituals of weddings, festivals, and personal events. Moreover, gold is a highly liquid asset that offers a sense of security during financial emergencies. Owners can quickly monetize their gold assets to arrange the required money.

When you need funds for weddings, businesses, home renovations, medical treatments, a child's education, etc., reach out to the gold lying in your bank and home lockers and apply for a Gold Loan to fulfill your financial needs promptly.

Here are a few things you should know before getting a loan against gold jewellery:

What is a Gold Loan?

A Gold Loan can be borrowed by physically pledging your gold assets. The gold that you provide as a means of security or loan collateral to the bank, must be in the form of gold ornaments. The loan provider assesses the actual economic value, purity, ownership of gold ornaments and the prevailing price of the metal before approving a loan against it. In financial emergencies, Gold Loan is the simplest and quickest source to monetize your gold asset and receive the required money. Anyone owning gold can apply for a Gold Loanand get funding according to the value assessed by the bank or loan provider.

Calculating the Gold Loan Amount

The loan amount you can borrow depends on parameters such as the weight purity and value of the gold you wish to pledge as security. DCB Bank provides Gold Loan amount that can be as high as 75% of the ornament’s market value. Here, you can borrow up to INR 20 Lakh, depending on the gold valuation.

Types of Gold Assets Eligible for Gold Loan

You can pledge your gold ornaments for loan against gold. However, ensure it is at least 18 carat in purity. Any gold asset below 18 carat will not be included for evaluation. You can also pledge gold ornaments that are embedded with precious or non-precious stones. However, the evaluators will reduce its weight while evaluating the weight of gold to be considered for arriving at the loan amount/eligibility. Remember, only gold ornaments and certain minted bank-issued coins are acceptable for loan against gold jewellery. DCB Bank does not consider gold biscuit or gold bar for evaluation.

Benefits of Gold Loan:

Since there are different types of funding options available in the market, you must be wondering if you should take a Gold Loan. Let's look at the benefits of getting one:

  • Since it is a secured loan, getting a loan against gold requires simple and minimal documentation.
  • The gold loan interest rate is much better and lower than other unsecured loan funding options.
  • Anyone who is between 18 and 70 years of age can apply for DCB Gold Loan irrespective of their employment history, credit rating, etc.
  • You can choose a repayment plan according to your convenience.
  • Your gold assets are safe in the lender's fire-proof lockers.
  • Easy loan availability due to DCB Bank's 400+ branches in 90+ cities.
  • You can get your gold ornaments back after successful loan dues repayment.

DCB Gold Loan Repayment Options

When experiencing a low cash flow situation, apply for a gold loan without EMIs. In this facility, you pay only the interest amount during the loan duration and the entire principal amount at the end of the loan duration. It is called the bullet principal method that does not burden you with hefty EMIs. This repayment option is preferable if you are sure of a stable financial status and you can pay the entire principal amount at the end of the loan tenure. You may also opt for a monthly EMI plan if you can adjust it to your monthly budget.

The options available to you to repay gold loan are truly one of the best features!

Documentation Requirements

Although the documentation requirements are minimal, you must provide the following identity documents:

  • Duly filled application form
  • Identity Proof: Either one of these - Aadhaar number proof, Voter ID Card, Driving License, Passport, NREGA job card signed by a State Government officer, a population register issued letter containing your name and address
  • Address Proof: Either one of these - Aadhaar number proof, Voter ID Card, Driving License, Passport, NREGA job card signed by a State Government officer, a population register issued letter containing your name and address

Where to apply for gold loan?

When looking for Gold Loan, it is better to approach a reputable financial institution like DCB Bank. As the Bank specialises in gold loan, it offers you the choice of repayment options and correctly determines your gold ornament’s value. They register the transaction with a stamp duty payable to the government. They also offer different repayment methods to match your financial requirements. Moreover, DCB Bank offers up to 75% of your gold's value, granting a larger loan against gold than others.

How to apply for gold loan?

Follow these steps to apply for DCB Gold Loan:

  • Contact DCB Customer Care or visit the nearest DCB Bank branch and enquire about gold loan
  • Submit the Gold Loan Application form and provide your gold ornaments for evaluation to the Bank to know the loan eligibility status

DCB Customer Care numbers are 022-68997777 and 040-68157777.

Attractive gold loan interest rate and flexible repayment options, enable you to raise a short-term loan to cover your urgent financial needs. When you apply for a gold loan with DCB Bank, your gold is kept safe in a fire-proof locker and returned to you safely once the total loan and dues amount are repaid. You can also withdraw the collateral (gold jewellery) partially upon paying nominal processing charges & fees. There are no hidden charges, the process is transparent, and you can avail a loan against gold easily anytime.

Terms & Conditions Apply.

Turn your gold ornaments into funds!


Information on the website is for informational purposes only and does not constitute financial advice. Readers are advised to consult financial professionals for personalized advice before making decisions. The information on this blog is subject to change without notice and may become obsolete. DCB Bank reserves the right to modify, update, or remove content at any time. Savings Account and Fixed Deposit Interest rates are subject to change without prior notice. DCB Bank shall not be responsible for any direct / indirect loss or liability incurred by the reader for taking any financial decision based on the contents and information mentioned in this blog. By accessing and using this blog, users agree to adhere to these terms and conditions. To read the complete disclaimer of DCB Bank, please visit: https://www.dcbbank.com/disclaimer

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