Short-term funds against ornaments
Banks lend against the assayed value of gold ornaments, up to the loan-to-value ratio permitted by the Reserve Bank of India. Ornaments are weighed and purity-tested at the branch and kept in the bank's strong room until repayment.
Repayment structures vary — bullet repayment, overdraft with periodic interest servicing, or equated instalments. Tenures for agricultural and non-agricultural purposes differ, as do the rates.
Interest rates, processing fees and valuation charges are declared by the bank. We do not collect any charge for facilitation and we do not influence the sanction decision.
The paperwork side of it
- Document checklist prepared before you visit the branch
- Comparison of repayment structures offered
- Understanding LTV, valuation and appraiser charges
- Renewal and part-release of ornaments after repayment
- Coordination with the branch until disbursement
Punjab National Bank · Canara Bank
Before you sign anything
Up to the loan-to-value ceiling permitted by RBI, applied to the assayed value of the ornaments. Stones, beads and impurities are excluded from the weight.
The bank may levy penal interest and, after due notice as prescribed, auction the pledged ornaments to recover its dues. Always keep the branch informed of any difficulty in advance.
Loan products are facilitated on a referral basis. Abhilasha Wealth is not a lender and does not sanction credit. Eligibility, sanctioned amount, rate of interest, tenure and all charges are decided solely by the bank or NBFC as per its credit policy. Credit at sole discretion of the lender, subject to terms and conditions.
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Have a question about Gold Loan?
Call us during working hours or send a WhatsApp message. We will walk you through the documents, the costs and the process before anything is signed.