Suggested Topic: Detailed Guide: How to Get Cash for Gold


The gold loan comes at low-interest rates and with quick processing and flexible tenors and repayment schedules. Plus, it’s easily gettable, provided you follow the following steps. 

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Banks and NBFCs can readily fund your urgent requirements against the security of gold. The arrangement is known as a loan against gold or simply a gold loan. This loan type involves pledging gold in the form of jewelry, coins, bars, or otherwise. The pledged value is checked for purity and the Loan to Value (LTV) decided accordingly. The form of the gold also decides the LTV. The LTV can be up to 75% of the pledged gold’s total value, subject to the lender. You are required to pay off the dues in a specified timeframe to get the pledged gold back.      

Why gold loan

The gold finance can be a wise move towards relieving your financial exigencies. Here’s why. 

  • As the gold is used as collateral, the lender’s risk is minimized. That translates into modest interest rates, typically between 13 and 16%. Plus, the processing fee is minimal and no hidden charges apply, provided you are good with the choice of your lender.        
  • The repayment schedules are flexible. You are required to repay the loan (principal plus interest) in installments within 12 to 60 months. The tenor can be extended if needed.
  • The cash for gold you get can be spent freely, as the no end usage restrictions are applicable. Medical bills, business expansion or higher education – it’s up to you. 
  • Feel free to pay the interest component only, as you have the option to pay the principal in a single payment just before the loan term expires. 
  • Your pledged gold is in safe hands. Lenders employ all security protocols like round the clock e-surveillance and well guarded strong vaults to keep it away from harm’s way.   
  • NBFCs like Muthoot Fincorp won’t even charge you prepayment charges if you pay the loan in full anytime during the loan term. Conversely, banks charge you for prepayment.
  • The gold loan is unaffected by fluctuations in the gold price. Even if the gold prices nosedive, you need not make up for the difference once the loan is sanctioned. 

How to get it

Getting cash for gold is quick and easy. Lenders like ACD Jewellers, have a streamlined cash against gold process designed for your convenience. The cash is processed instantly without the long complex process which is to done while taking a loan. It’s a typical one-visit instant cash.

. Eligibility criteria

  • : You need to meet certain specifications to get a loan against gold.  Specifications may vary, but lenders generally require the applicant to be: 
  • An Indian citizen
  • Self-employed or salaried 
  • Having a stable monthly income  
  • Aged 18 or above at the time of applying 
  • Not over 65 years old when the loan term expires

The lender might not sanction the loan for gold below 18 karat purity.  

  • Documentations: Gold finance requires minimal paperwork. You need to put together: 
  • ID proof: PAN Card, Aadhaar Card, Passport, Voter Id Card
  • Address Proof: Ration Card, Passport, Aadhaar Card, Utility bill
  • Income proof: Previous two years’ ITR, 6 months Bank statements


Once you have the paperwork in order, it’s time to apply for the loan. This can be achieved either online or offline. The former involves filing an online form available at the lender’s website. The lender’s representative will go through the details provided in the application for eligibility. Next, they’ll revert to you at the earliest to discuss your options. Following this, your appointment will be fixed with a banker. Your documents will be picked up from your premises. 


You’ll be invited to the branch office with your gold. The yellow metal will be evaluated for purity in front of you. The valuation is critical for deciding the loan amount (LTV), interest rates and other key aspects of the gold finance. The valuation report will be generated elaborating on the gold’s purity, market value and other features. You’ll be modestly charged for valuations. 


The officials will sit with you to negotiate interest rates, repayment schedules and more. You are free to clear your doubts regarding the cash for gold arrangement. Eventually, you’ll be signing a loan agreement with the lender and submitting your gold. Shortly after, the loan amount is disbursed into your account. The process is smoother, quicker and cost-effective with NBFCs than banks. 


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