A First-Time Borrower’s Checklist for Gold Loans
By SonaFin Editorial Team · · 4 min read
In short: Before taking your first gold loan, compare the interest rate, per gram rate, fees, tenure, repayment options and disbursal time across at least three RBI-regulated lenders, and pick a repayment plan you can sustain.
Compare these seven things
Interest rate, per gram rate, processing and other fees, tenure, repayment options, foreclosure and part-payment terms, and how quickly the money reaches you. Write down each lender’s answer so you can compare them side by side.
Borrow only what you need
Borrowing less than the maximum lowers your interest cost and leaves a buffer if the gold price falls. Choose a repayment plan that fits your income, since missed payments can lead to penalties and, in the end, auction of your gold.
Before you sign
Read the agreement, confirm the lender is RBI-regulated, and get a receipt for your gold. Check how and when you get the gold back. Use a calculator to see the total repayment, and compare lenders on SonaFin before you decide.
Compare gold loans before you decide
See rates, per gram rates and fees from RBI-regulated lenders side by side. Free, with no sign-up.
Compare gold loans