Gold Loan / Loan against Gold

Why go for Personal or Business loans when you have the power of gold with you! Get a loan against your gold, in minutes!

Loans up to One Crore rupees.
  • Draw instant Cash by pledging your Gold Ornaments and Jewellery.
  • Higher loan amounts, depending on purity, net weight of the gold.
  • Choose from a range of schemes; there's one just right for your needs.
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Highlights of Gold Loan

Minimum Requirements:
  • Only one recent ID—Voter ID/ Ration Card/ Driving License/ Passport. No time-consuming formalities involved.
  • Pay interest only for the exact period of loan, and to the exact number of days.
  • Different schemes for different needs, to suit all income groups.

Gold Loan FAQs

  1. How are Gold Loans different from other loans like Personal Loan or Credit Card? Gold loan is sanctioned by accepting the gold ornaments of the customer as pledge. Personal loan is sanctioned on the basis of source of income and repayment capacity of an applicant. It is true that Gold loans, like personal loans or credit card borrowings, are often used for short term household requirements. However, in terms of the cost and ease of availing the loan, and the convenience when repaying, gold loans are a better bargain. Personal loans and credit card borrowings are unsecured loans and therefore may carry a higher rate of interest. Moreover, personal loans require considerable effort in documentation formalities and they commit you to an inflexible EMI schedule for repayment. Gold loans, on the other hand, are cheaper and can be availed of in minutes. You can also stretch the repayment to your convenience; the only requirement is that you have to service the interest periodically. Credit card borrowings may be easier to avail than even gold loans but the interest rates are prohibitive and it can lure people into a debt-trap.
  2. Who is eligible to avail Gold loans? What security has to be provided? Anyone who owns gold ornaments can avail the loan. (Note: minors are not eligible.) To obtain the loan you need to submit your gold jewellery (within a karat range of 18 to 24 k) at the branch. The loan amount that is sanctioned will be based on the gold valuation which involves verification of its purity. The weight of stones etc. fixed on the ornaments will be deducted for the purpose of valuation.
  3. What are the documents required for taking loan against gold ornaments? Are there any end-use restrictions involved? We need one document of identity proof (such as ration card, driving licence, PAN Card, Voter ID card, passport etc.) and one document of residential proof. There are no end-use restrictions in gold loans.
  4. What is the rate of interest charged on such loans? How is the interest calculated? Our base rate of interest is 12 percent. However, depending upon how high the loan to value (LTV) is, additional interest (amounting to risk premium) ranging from 3-12 percent is charged over and above the base rate. The interest and risk premium is applicable only for the days the money was actually utilised. There are no prepayment penalties. Simple interest is charged, which the borrower has to pay at the specified periodicity or at the closure of loan, whichever is earlier. The interest rate is fixed and calculated on a reducing balance basis.
  5. What is the tenor of such loans? Our gold loan products have a maximum tenor of one year. However, depending upon how high the LTV is, customers are required to service the interest at specified periodicities. For example, in schemes where LTV is high, interest would have to be serviced monthly, whereas in schemes with lower LTV, it may be serviced at quarterly or even half-yearly intervals.
  6. How long will it take for me to get my gold loan? Once you submit your application form and supporting documents, we shall give approval within a matter of minutes provided everything is in order. All loan approvals are at the sole discretion of the branch head.
  7. Are the pledged gold ornaments safe and secure? Gold ornaments accepted as pledge by the customers are stored at the branches in strong cash safes inside a strong room built to the standards and specifications applicable to commercial banks. The pledged gold ornaments are insured for full value. Moreover, security personnel and electronic surveillance technology are deployed to protect the gold.
  8. Do I require a Guarantor or Introducer for availing Gold loan? Do I need to open an account with a Bank? No. Unlike other loans, there is no need for either a Guarantor or Introducer and there is no need for a bank account.
  9. How do I repay my Gold loan? You repay the loan at the end of the loan tenure. You do not have to go through hassle of servicing EMIs every month. However, interest has to be serviced periodically, as per the terms of sanction. Repayments can be made in cash, by cheque or DD. Moreover, repayments towards interest and/or principal can be conveniently made at the counters of any of our nationwide network of branches, irrespective of where the loan was taken from. Enquiries about outstanding amount etc. can also be made at any of these branches. However, the pledged ornaments will be released/handed back only at the branch from where the loan was originally availed.
  10. Is there any maximum and minimum limit for availing Gold Loan? What about the tenure of the loan, lock-in period, and prepayment penalties? Gold loans may be availed for any amount between Rs.1,000 to a maximum of Rs.1.00 crore. Loans are available for periods ranging from one month to one year. Our Gold loans do not have any lock- in-period and there are no prepayment penalties should you choose to repay earlier than scheduled.
  11. Whether partial payments of loan and interest are accepted? Customers are free to repay part amount of loan and/or accrued interest thereon at anytime in order to reduce the interest burden on the loans. Interest is calculated on daily product basis on the amount of loan outstanding at the end of the day.
  12. How can customers settle the loan account and get back the gold ornaments? The customer has to submit the pawn ticket (given to them at the time of taking loan) to the counter staff at the branch with a request to close the loan account. The staff will enquire into your account in the (computer) system and inform you of the outstanding loan amount (principal + interest accrued). By depositing the outstanding loan amount with up to date interest, the loan account is closed. The branch head then hands over the ornaments to the customer against his/her acknowledgement.
  13. goldloanWhat happens if the loan amount is not repaid on the due date? In case loan amount is not repaid on or before the due date, penal rate of interest is charged on the loan amount.
  14. Is there a possibility of damage to the ornaments at the time of appraising? Appraising is done in the presence of the customer only. Due care is taken during appraisal to ensure that there is no damage to the ornament during any stage of appraising or storing.
  15. What are the things that people should keep in mind while taking a gold loan? The most important things from the customer's perspective are transparency, security and choice of loan product to suit individual requirements. Transparency would help the customer see for himself what he gets in return for what he pays. There should be no hidden costs and no nasty surprises. Security is about how well the gold is physically secured, and also about the internal systems and procedures at the company which ensure that there is no scope for any mala fide actions after the jewellery has been pledged. The choice of loan products should cover the range from high LTV (loan to value) to low LTV, with appropriate variations in interest rates. All these aspects are well taken care of.
  16. What makes our Finance different from other providers of gold loans? In addition to the transparency, security and range of its gold loan products (as mentioned above), Our Finance distinguishes itself from others primarily on the basis of the ease with which gold loans can be availed from our branches. The only requirement is that borrowers present themselves at our branches with the jewellery and with a valid ID and address proof. Our streamlined systems and procedures ensure that a gold loan can be availed in a matter of minutes. Also, we offer the highest LTV to those interested in availing the maximum amount of loan against their jewellery. We are able to do this because with our long experience in the business, we have acquired the capability to handle the extra risk involved.
  17. What are some of the gold loan schemes that offers to suit its customers from different income groups? Our gold loan schemes fall broadly into three categories
    • High loan to value: These schemes offer the maximum amount of loan per gram. At the same time, in keeping with the extra risk, the interest cost to the borrower is higher.
    • Low interest rate: In this category, the interest rates are lower but the Loan to Value (LTV) is also comparatively less.
    • Longer loan tenure: In this category, the payment of interest is spread out over a longer period and typically, the LTV is lower here.
    Our products are tailored not to the income group of the customer, but to relevant considerations like how much loan customers would like to avail against a given item of jewellery, and their comfort levels with respect to the interest rate and periodicity of repayment of interest and principal. Incidentally, gold loans can be availed at our branches for amounts as low as a thousand rupees and as high as one crore rupees.
  18. In case of default, when will the gold jewellery be auctioned off? In case of persisting overdue, the ornaments will be auctioned off but only after giving sufficient notice to the borrower. We serve a reminder to its overdue accounts apart from periodic SMS reminders to our customers to alert them to the overdue in the account. Moreover, we also send auction intimation prior to the auction.
  19. Whom do I contact for more details? Kindly get in touch with the staff at the branch nearest to where you are located. Information about branches convenient to you can be easily obtained from our website by following this link: http://eruminternational.in

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