How to get a gold loan without documents [5 Steps]

You want to be Financially secure but you feel impossible at this time for taxes, bills, business loss and other unexpected expenses so you decide to pledge your gold ornaments, coins, or bars as collateral to borrow money?

Well In this blog post, we will learn everything about How to get a gold loan without documents and what eligibility requirements are needed. Do you need documents? what will be the interest rate, what is the procedure for the loan repayment or what is the duration of the loan, whether your pledge gold is safe or not, and many more.

What Is a Gold Loan?

Gold loan Also Known as a secured loan where you pledge your gold ornaments, coins, or bars as collateral to borrow money. Banks and Non-Banking Financial Companies (NBFCs) lend up to 75% of the gold’s value, as per RBI guidelines.

Unlike personal loans or gold loans don’t require a high credit score. They are a quick and easy process if you need short-term cash, like if you need money for 1-2 years. You can get a gold loan for up to 3-4 years, but it’s best for smaller amounts. If you need a small amount quickly, like for an emergency or small business expenses, a gold loan is ideal. But if you want to buy property or invest in a business, you should consider a home loan or a loan against property instead.

Key Benefits of Gold Loans

• Lower Interest Rates: Gold loans are secured, making them cheaper than personal loans.
• Quick Disbursal: Many lenders approve and disburse gold loans within 45 minutes.
• Minimal Documentation: Basic KYC documents are sufficient.
• Flexible Repayment Options: Choose from EMI, overdraft, or bullet repayment.

Once you repay your loan, you’ll get your gold back. with a low credit score (CIBIL score in India), you can still get a gold loan. Paying it off on time can even improve your credit score. You pledge your gold (ornaments, bars, coins) to the lender (NBFC or bank). Your gold is securely held, and you’ll get it back after repaying the loan. If you default, the lender can auction your gold, but they will give you a final notice before doing so.

Purpose of Gold Loans

• Ideal for short-term funds (1-2 years).
• The maximum loan term is 3-4 years.
• Suitable for small financial needs or emergencies.
• Not for large amounts like buying property or major business investments.

Is It Possible to Get a Gold Loan Without an Invoice?

Yes, you can! Trusted banks and NBFCs like Bajaj Finance and IIFL offer gold loans without requiring purchase bills. Instead, they rely on expert evaluations to verify the gold’s purity and weight. Compare banks and NBFCs (e.g., HDFC, SBI, ICICI, Muthoot, Manappuram) for interest rates, loan-to-value (LTV) ratios, and reviews. For you, I am giving a table

Loan Minimum and Maximum Limits for Banks

Bank/NBFC	Minimum Loan Amount (₹)	Maximum Loan Amount (₹)

SBI

₹10,000

₹20 lakhs

HDFC Bank

₹25,000

₹50 lakhs

ICICI Bank

₹15,000

₹1 crore

Muthoot Finance

₹1,500

₹1 crore

Manappuram

₹1,000

₹1 crore

How to get a gold loan without documents

Here’s a step-by-step guide. This process allows you to secure a gold loan efficiently, even without purchase bills.

1. Submit an Application

Visit your nearest branch.

2. Provide Basic Documents

Submit ID and address proof, such as Aadhaar or PAN card.

3. Submit Gold for Evaluation

The lender assesses your gold’s purity and weight using XRF machines and independent appraisers. Visit the lender’s branch or an appraisal center. Experts will evaluate the gold’s purity and weight to determine its market value. Loan amounts are typically 60%-75% of the gold’s value.

4. Accept Loan Terms

Based on the evaluation, the lender offers a loan amount and terms. The lender verifies your documents, assesses the gold, and approves the loan. You’ll receive terms such as interest rates and tenure.

5. Receive Funds

Once you agree, the amount is disbursed quickly, often within 15 minutes. Once approved, funds are transferred via bank account, cheque, or prepaid cards. Some lenders offer cash disbursement for smaller amounts.

Loan Repayment

• You’ll get your gold back once you repay the loan.
• Even with a low credit score, you can get a gold loan.
• Timely repayment can improve your credit score.
• Gold (ornaments, bars, coins) is pledged as security.
• Gold is securely kept by NBFCs or banks.
• If you default, the lender can auction your gold after giving final notice.

Interest Rates

• Cheaper than personal loans and credit card debt.
• Banks: 2-6% higher than home loan rates.
• NBFCs: 5-10% higher than home loan rates.

Fast Disbursement

• NBFCs often disburse loans on the same day.
• Banks usually take 2-3 days.

Processing Fees

• 0.5-1% of the loan amount.

Loan Tenure

• 3 months to 4 years.
• NBFCs offer 6-month to 1-year terms.
• Banks offer up to 4 years.

Eligibility

• Must be 18+ years old.
• A steady income source is checked.

Valuation and Loan Amount

• Only 18-20 karat gold is accepted.
• Stones are removed and not considered in the valuation.
• Making and impurity charges deducted (20-30%).
• Loan-to-value ratio: Max 75%.
• Loan amount: 50-60% of gold’s purchase value.

Loan Amount for ₹5 Lakh Worth of Gold

Gold Value	Loan Amount (50%)	Loan Amount (60%)	Loan Amount (75%)
₹5,00,000	₹2,50,000	₹3,00,000	₹3,75,000

Loan Repayment Options

• Option 1: Pay interest monthly. The principal can be paid anytime or at the end of the loan tenure.
• Option 2: Pay principal and interest in monthly EMIs.

Safety

• Gold is kept in secure vaults with electronic surveillance.
• Full-value insurance is provided.

Conclusion

FAQs