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Gold loan is a type of secured loan where individuals can borrow money by pledging their gold jewellery, coins (bank issued coins), or ornaments as collateral. The loan amount is determined based on the appraised value of the gold. Gold loans are often preferred for their quick processing, minimal documentation, and relatively lower interest rates compared to unsecured loans.

The minimum age requirement is 18 years, while the maximum age is 75 years. However, your golden items must match the purity of 18KT or above to qualify for the loan.

The specific documents required for gold loan may vary among lenders, but generally, the following documents are commonly requested:

Identity Proof:

• Aadhar card
• Passport
• Voter ID
• Driving license

Address Proof:

• Aadhar card
• Passport
• Utility bills (electricity, water, gas) in the borrower's name
• Rental agreement

Photographs:

• Passport-sized photographs of the borrower

Proof of Ownership of Gold:

• Invoice or bill of purchase, if available
• Receipts related to the gold ornaments

The interest rate depends on the lender and various other factors like gold purity, gold form etc. However, interest rates may vary between 11.99% to 29% per annum.

Various factors determine the applicable interest rate on gold loan, including but not limited to:

1. Loan amount
2. Gold purity
3. Gold value

Paytm does not charge you any fee for your Gold loan application. Processing Fee of upto 1% on your loan value may be charged at the time of disbursement.

The tenure of gold loan can range from 6 months to 36 months, depending on the lender.

Gold items eligible for pledging must be of a purity level between 18 karats and 22 karats. Whether it's gold jewellery, coins or ornaments you can use them as collateral to secure the loan. The loan amount you qualify for is determined by the assessed value of the gold. It's important to note that the presence of gems or gemstones in your gold jewellery does not impact the loan amount, as the valuation is primarily based on the gold's intrinsic value.

The value of your gold is assessed based on its purity and current market rates. Lenders use professional appraisers or technology for accurate valuation.

The LTV ratio represents the percentage of the gold's value that can be borrowed. It depends on the lender to lender ranging between 70-75%.

Yes, since gold loans are secured by collateral, a low credit score may not be a significant barrier.

The loan amount is determined at the time of approval. Any change in gold value generally does not affect the agreed-upon loan amount.