Gold Loan FAQs

Get prompt responses from a friendly, professional and knowledgable support team.

What is a gold loan?

As the name suggests this is the loan given against gold. It’s a secured loan that enables borrowers to pledge their gold in lieu of a cash loan. The maximum loan amount loan varies from one lender to another. It can range between Rs. 1,500 and Rs 1 Crore depending on the eligibility criteria.Customers usually go for this loan for short period to meet the requirement of their children’s education, marriage and other financial problems in the family.

What is the eligibility criterion to qualify for a gold loan?

For a gold loan, applicants should be aged above 18 years and should have gold that needs to be mortgaged with the bank.

What is the interest charge applicable on gold loan?

The interest rate on your gold loan varies from profile to profile. NextFin team will assess your gold and profile and then provide the best possible competitive rate.

What is the maximum amount that can be sanctioned under the gold loan scheme?

The maximum loan amount loan varies from one lender to another. It can range between Rs. 1,500 and Rs 1 Crore depending on the eligibility criteria.

How long does it take to complete the gold loan approval process?

The loan approval process for gold loan is very fast. If your application meets all the requirements, it takes just an hour for the loan amount to be disbursed.

What is the repayment tenure of a gold loan?

A gold loan can be repaid in as less as 1 day to 48 part payment installments.

What are the additional fees that I will need to pay at the time of taking a loan?

A nominal processing fee is levied on your gold loan.

Are there any foreclosure charges on a gold loan?

Loan foreclosure charges range from 0%-3% and are applicable on the outstanding amount of your gold loan.

How can the pledged gold against the loan be reclaimed?

It’s very simple to reclaim deposited gold. Plan your loan repayment efficiently and ensure you do not default. Failure to repay the loan in the stipulated time will result in auctioning of your gold ornaments.

What medium should I use to repay the loan?

The loan can be repaid by choosing any medium of money transfer as you desire, such as Cash, Cheque, Demand Draft or Online Fund Transfer.

What is the penalty for delay in repayment of loan?

NextFin usually levy an annual penalty between 1% and 6%. This is in addition to the rate of interest that you would be paying to service your loan.

What documents are required for approval of your gold loan?

Documents required for approval of your gold loan are:

Id proof, such as your Driving License, Pan Card, Form 60/61, Passport, and Voter ID card.
Address proof, such as House Registration Documents, and Utility Bills

Can I repay the loan partially?

A gold loan can be repaid partially at any point in time. However, your deposited gold will only be returned once the entire loan amount has been repaid.

Is the gold pledged with NextFin safe?

NextFin take a lot of precaution while storing your gold and keep it safe until the loan amount is returned. We understand the sentimental value attached to gold ornaments and act as custodians while the gold remains with us.