What is a Gold Loan? Benefits of Taking a Loan Against Gold Explained

In today’s fast-paced life, we often need money urgently; in such situations, gold loans are excellent option whether it is a medical emergency or you need funds for farming.  A jewel loan or gold loan is a type of secured loan where you pledge your gold jewelry as collateral and borrow money from a bank or financial institution.

It’s a secured loan, meaning your gold asset acts as the guarantee for the loan. With a loan against gold jewelry, you can get quick financial assistance without any complicated processes. In this blog, we’ll explore a gold loan, its benefits, and the essential details you need to know before opting for one.

What is a Gold Loan?

A gold loan, commonly referred to as a loan against gold jewelry, is an easy way to borrow money from banks or financial companies by pledging your gold jewelry as collateral. The loan amount is determined based on the purity and value of the gold you deposit as security.

Taking a gold loan is very simple, and the biggest advantage is that it gets approved in just about 30* minutes. It involves minimal paperwork and doesn’t require a CIBIL score check, making it a quick and hassle-free option.

A loan against gold is an accessible, fast, and straightforward borrowing option for those in need of immediate financial assistance. The borrower’s gold jewelry is kept safely in the bank’s locker, ensuring a secure process and quick loan approval.

Benefits of Jewel Loan or Gold Loan

1. Quick Processing and Approval:

   As mentioned earlier, a gold loan is a type of secured loan where you pledge your gold jewelry works as collateral you don’t need permanent income and credit checks this makes jewel loans accessible for everyone without the need of a high CIBIL score. As you need an extra check for approval, a loan against gold gets approved quickly within 30* mins. So, it becomes an excellent option for immediate needs such as medical emergencies, education expenses, or business requirements.

2. Lower Interest Rates:

   Since gold loans are secured loans, they come with lower interest rates compared to unsecured loans like personal loans. This allows borrowers to access funds lower cost and manage their finances easily.

3. Flexible Repayment Options:

   Jewel loan providers offer flexible repayment options, allowing borrowers to choose a repayment type that fits their financial situation. This enables borrowers to repay the loan comfortably and close it without any hassle. To solve repayments for farmers and businesses, SahiBandhu has designed 3 different gold loan schemes to meet our customer’s requirements.

4. No Need for a CIBIL Score:

   Gold loans are backed by gold jewelry, so lenders usually don’t check for your credit history or stable income. This makes jewel loans accessible even to individuals with a low credit score. If you own gold, you’re eligible for taking gold loans.

5. High Per Gram Rates:

   According to the RBI, borrowers can avail up to 75% of their gold’s current market value as a loan. It means you can get a higher loan value that can be used for different financial needs such as business investments, overseas education, or medical emergencies. The value of gold is determined based on its purity and current market rate.

6. Security of Your Gold Jewelry:

   Gold loans are secure and safe, when you take a jewel loan the lender bank or NBFC ensures the security & safety of your valuable jewelry. You are provided with insurance for your gold and it is kept in bank value. When you close the loan returned to you in the same condition.

How and Where to Get a Gold Loan?

To get a gold loan, you need to have gold jewelry of 24k, 22k, 20k, or 18k purity. Next, choose a bank or an NBFC (Non-Banking Financial Company) in India that offers loans against gold. You can easily apply online for a gold or can get one at your home. Once you apply for a loan on your gold, the bank or NBFC processes and evaluates the purity of your gold and verifies your documents. This can be done either at your home or at their branch. The documents required typically include a PAN card, an ID proof (such as an Aadhaar card, valid passport, driving license, or voter ID), and an address proof. However, the specific requirements may vary depending on the lender.

Once the gold purity assessment and document verification are completed, they make you offer how much they can lend you against the gold you pledged. Once you accept the terms, it usually takes 30 min to 1 hour* to deposit the loan amount to your bank. Your gold jewelry is securely packed in a tamper-proof packet and kept in the bank locker. It remains safe and is returned to you upon full repayment of the loan.

When opting for a gold jewel loan, choosing the right provider is crucial. You can take loans from banks, NBFCs, or specialized gold loan platforms. Among these, platforms like SahiBandhu stand out for their customer-focused services, transparent policies, and the benefit of offering high gold loan rates to maximize the value of your assets.

Why get a jewel loan with SahiBandhu?

SahiBandhu is India’s leading gold loan aggregator platform with over 12,500+ PIN code presence and association with India’s best banks to deliver gold loans. We provide a hassle-free and customer-friendly experience. Here’s what makes us better:

1. Competitive Interest Rates

   We offer attractive gold loan interest rates, ensuring borrowers get the best value for their gold compared to other providers.

2. Online Gold Loan Application

   With our tech-enabled platform, customers can apply for a gold loan online from the comfort of their homes by visiting SahiBandhu’s official website (sahibandhu.com) or calling the toll-free number 18003098440.
   Additionally, With SahiBandhu Smart Gold Loan Calculator you can calculate your jewel loan amount, interest rates and EMIs.

3. Doorstep Gold Loan Services

   We specialize in gold loan at-home services. A dedicated SahiBandhu officer (SBO) visits your location to process the loan application. For security, you verify the officer’s identity using an OTP sent to your mobile. Within just 30 minutes, after document verification and gold assessment, the loan amount is transferred directly to your bank account. This service saves you both time and effort.

4. Secured and Transparent Procedures

   At SahiBandhu, transparency is our core value. We ensure that customers fully understand the terms, conditions, repayment options, and interest rates of the loan before proceeding. The officers provide complete clarity on every step to give you peace of mind.

For a fast, secure, and convenient experience, SahiBandhu is a trusted choice.

Last Lines
Gold loans are a quick & easy way to arrange funds immediately. Whether you need money for medical emergencies, higher education or making a home, SahiBandhu Gold Loan provides hassle-free services with instant approval. Our competitive interest rates, seamless online application process, and doorstep services make it a reliable and efficient option for those looking to utilize the value of their gold without selling it, ensuring timely financial support when needed.