Gold Loan Eligibility: What You Need to Qualify in India

When you need quick cash, a gold loan, a secured loan where you pledge gold jewelry or coins as collateral. Also known as gold collateral loan, it’s one of the fastest ways to get money in India—often within an hour. Unlike personal loans, your income or credit history doesn’t matter as much. What matters is the gold you bring to the table.

Most lenders in India, from banks like SBI to NBFCs like Muthoot Finance, require you to be at least 18 years old and own gold that meets their purity standards—usually 18 karat or higher. The loan amount isn’t based on your salary; it’s based on the weight and market value of your gold. Typically, you can borrow 70% to 90% of the gold’s current value. If your 10-gram gold chain is worth ₹50,000, you might get ₹35,000 to ₹45,000 in cash. No paperwork, no guarantor, no employment proof. Just your gold and ID.

But here’s what most people miss: credit score, a numerical measure of your creditworthiness used by lenders in India. Also known as CIBIL score, it still plays a role. If your lender reports to CIBIL—and most big ones do—paying your gold loan on time can boost your score. Miss a payment, and it drops. That’s why even if you don’t need good credit to get the loan, you still need to treat it like any other debt. Some people use gold loans to pay off high-interest credit card debt, and that’s smart—if they pay the gold loan back on schedule.

What about the gold itself? Lenders don’t want broken bangles or dirty coins. They clean and test it in front of you. If your gold is below 18 karat, they’ll either reject it or lower the valuation. Keep your gold in good condition. No need for receipts or certificates—just the physical item.

And don’t assume all lenders are the same. Some offer lower interest rates but require you to visit a branch. Others let you apply online but charge more. Check the interest rate, processing fee, and prepayment rules before signing. A 12% rate might sound low, but if the processing fee is ₹5,000, you’re paying more than you think.

Gold loans aren’t for long-term borrowing. They’re for emergencies, short-term gaps, or quick opportunities. If you’re using it to fund a business or education, make sure you have a clear repayment plan. The longer you keep the loan, the more interest you pay.

Below, you’ll find real stories and clear guides on how gold loans work in India—from what documents you actually need, to how they affect your credit, to what happens if you can’t repay. Whether you’re thinking of pledging your wedding jewelry or just want to understand your options, these posts cut through the noise and give you what matters.