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Some Facts About the HDFC Gold Loan

HDFC Gold Loan

A gold loan is a financial arrangement in which people borrow money from a bank or financial organisation in exchange for gold jewellery or decorations as security. The lender evaluates the gold's worth and makes a loan based on a proportion of that value. Borrowers return the loan, including interest, over a certain period of time. If the borrower does not repay, the lender has the authority to sell the gold at auction to recoup the unpaid sum. Gold loans are often secured and provide a rapid means of obtaining finance while leveraging the value of one's gold possessions.

What makes it so popular in India?

The prevalence of gold loans in India originates from cultural and economic causes. Gold has significant cultural meaning and is regarded as a precious item. Gold loans offer rapid and easy funding, particularly for people who do not have standard credit. Loans against gold are tempting because they are easy to arrange, need no paperwork, and have lower interest rates than unsecured loans. Furthermore, variations in the price of gold provide borrowers with possible rewards. These considerations have all led to gold loans' lasting popularity in India.

The HDFC Gold Loan

The HDFC Bank One of the greatest gold loan programmes in India is Gold Loan. Self-employed and salaried persons, including farmers and others, may borrow funds against gold. The HDFC Sampoorna Bharosa loan is a plan created for individuals who want emergency financing in exchange for gold jewellery. The bank would take gold jewelery weighing up to 500 grammes. It even takes gold coins obtained from a bank as collateral. The quality of the gold must be between 18 and 22 carats. You may borrow up to Rs. 50 lakhs at an interest rate of 11%. The loan has a maximum term of 24 months.

Standard of acceptable gold jewellery

Acceptable gold jewellery

It is gold jewellery weighing between 22 and 18 carats.

Loan against sovereign gold bonds

Both physical and demand sovereign gold bonds are acceptable.

What you cannot provide in order to get an HDFC Gold Loan

Gold bars, containers, utensils, and individual mangalsutras are not permitted.

Loan Amount Awarded

The loan amount is determined by the loan to value (LTV) ratio, which varies per institution. The LTV ration at HDFC is 75% (the maximum limit set by the RBI). So, if your gold cost was discovered to be 100,000 (after being appraised by a valuer), you received Rs75000 as a loan.


Individuals who want to apply for this gold loan must meet a few fundamental requirements.


Applicants must have enough money to repay the loan.


Applicants may only get this loan if they provide gold as collateral.

Necessary Documentation

HDFC has reduced the paperwork requirements for this loan offering to a single page. To process an application, the following documents must be presented.

• Valid government-issued identification (PAN card, Passport, DL, etc.)
• A valid government-issued address evidence (utility bill, passport, Aadhar card, ration card, etc.)
• Application form - A completed and signed application form. HDFC Bank may request additional papers to complete the application process.

Options for Advance Payment

You may pay off your loan after three months without incurring any prepayment penalties.


Gold loans apply online provide an easy and handy alternative for people to get immediate funding by leveraging their gold holdings. They serve a broad spectrum of borrowers because to a simple application procedure and generally lax credit checks. However, because of the danger of probable default, which might result in the loss of valuable assets, prudence is urged. Interest rates may also be higher than on regular loans, affecting the final cost. Borrowers should thoroughly consider their repayment ability and other options before taking out a gold loan. To retain the credibility of this financial choice, lenders must practise openness and fairness.

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