Is the gold pledged with banks safe?

Banks take a lot of precaution while storing your gold and keeping it safe until the loan amount is returned. They understand the sentimental value attached to gold jewellery / ornaments and act as custodians while the gold remains with them.

What documents are required for approval of your gold loan?

Documents required are: • Id proof, such as your Driving License, Pan Card, Form 60/61, Passport, and Voter ID card • Address proof, such as House Registration Documents, and Utility Bills. You need to provide address proof, photo identity and signature proof along with three passport size photographs.

What happens if I am not able to repay my loan amount?

In case, you fail to repay your loan then the Bank’s or NBFC’s will auction your gold assets. But, it will happen only after giving you sufficient notice. They will also send auction intimation prior to the auction.

What are types of repayment?

There are three types of repayment – 1. INTEREST ONLY: Borrower pays only simple interest on the principal amount every month. At the end of the tenure, the borrower pays the principal and closes the loan. 2. EMI: A fixed amount is paid by borrower to a lender at a specified date each calendar month. Equated monthly instalments are used to pay off both interest and principal each month, Over a specified number of years, the loan is paid off in full. 3. BULLET: Bullet is where payment of entire principal and interest is made at the end of the loan term.

How can I repay my gold loan?

You can repay the loan by cash, cheque, DD/Wallet at the branch from where your loan is disbursed. Alternately, you can also pay online through fund transfer (options like NEFT and RTGS).