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Important Document Checklist for Gold Loan


A gold loan is a loan given against gold jewellery, gold bars, and gold coins. It is one of the securest ways of arranging immediate finances for your personal or professional needs. Getting a gold loan approved is easier compared to other types of loans as the loan is given against the value of the gold. The gold is further taken into possession by the respected bank and kept safely in locked vaults. Read on to know more about the benefits of taking a gold loan, the eligibility criteria, and the gold loan required documents.

What are the benefits of taking a gold loan?

Taking a gold loan is one of the fastest and safest ways of arranging money for your personal or business needs. You can get gold loans for agricultural needs too. However, you cannot take a gold loan for any speculative purposes that, in turn, depend on the bank in question. There are various benefits of opting for a gold loan like:

  • Guaranteed convenience and safety  
  • Flexible eligibility criteria
  • Reasonable interest rates
  • Flexible repayment tenures/ repayment at the end of the gold loan tenure
  • Minimal documentation
  • Nominal processing fees
  • Quick funds disbursed/ received
  • Nominal to none foreclosure charges
  • High loan to value (LTV) ratio

Additional Read: Gold Loan as a Viable Option to Consider this Year

Who is eligible to take a gold loan?

The eligibility criteria for getting a gold loan are not very stringent. In fact, even those with a bad CIBIL or credit score and little to no financial assets can apply for a gold loan. Some of the commonly applicable eligibility rules include:

  • Being above the age of 18 years and up to 70/ 75 years (depending on the bank)
  • Being a salaried, self-employed, or business person
  • Being a trader or a farmer
  • Passing the minimum carat level set by the bank (that is generally between 18 to 24 carats)
  • Having all the necessary gold loan documents

Sometimes, only gold jewellery gets accepted as collateral in exchange for a gold loan and gold bars and coins might not get accepted.

What documents do you need for a gold loan?

While applying for a gold loan, you must have the gold loan required documents in place. These documents include:

Valid and active identity proof like:

  • Aadhar card
  • PAN card
  • Voter ID card
  • Passport
  • Driving license
  • Ration card
  • Passport-sized photograph(s)
  • Form 60/ 61

Valid and active address proof like:

  • Voter ID card
  • Driving license
  • Ration card
  • Aadhar card
  • Passport
  • Utility bills – gas, electricity, water, and the like that are not older than three months
  • Lease agreement (if required)
  • Income proof (if required)
  • Proof of landholding in cases of agricultural loans

You must also fill and submit the gold loan application form correctly to avoid rejection of the loan. Your bank might also request you to furnish any other documents they deem as needed. You might also have to pay additional charges over and above the processing fees. These charges include Goods and Service Tax (GST), stamp duty, prepayments, and other government charges that fluctuate from time to time.

Additional Read: Mistakes to Avoid while Applying for a Gold Loan

To conclude:

Securing a gold loan is easy, provided you have your documents in place. Once you submit the duly filled form and the documents required for gold loans, you can get an instant gold loan approval and funds disbursal in less than 60 minutes! You can use the funds received to fulfil any of your personal or professional dreams. Meanwhile, you have to repay the bank the money taken in exchange for the gold in flexible EMIs or at the end of the gold loan term. You have to repay the principal (original) amount you receive at the time of loan approval and the interest charged. The interest rate for a gold loan generally ranges between 9% to 16% per annum.


ICICI Securities Ltd.( I-Sec). Registered office of I-Sec is at ICICI Securities Ltd. - ICICI Venture House, Appasaheb Marathe Marg, Mumbai - 400025, India, Tel No : 022 - 2288 2460, 022 - 2288 2470. I-Sec is a Member of National Stock Exchange of India Ltd (Member Code :07730) and BSE Ltd (Member Code :103) and having SEBI registration no. INZ000183631. Investment in securities market are subject to market risks, read all the related documents carefully before investing. We are distributors of loan products, Insurance and Mutual funds, Corporate Fixed Deposits, NCDs, PMS and AIF products. ICICI Securities Ltd. acts as a referral agent to various banks for various loan facilities and is subject to fulfilment of eligibility criteria, terms and conditions etc. All disputes with respect to the distribution / referral activity would not have access to Exchange investor redressal or Arbitration mechanism. The contents herein above shall not be considered as an invitation or persuasion to trade or invest.  I-Sec and affiliates accept no liabilities for any loss or damage of any kind arising out of any actions taken in reliance thereon.

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