Gold loans are available to multiple number of people at the same time as they do not need many documents, eligibility criteria is minimum and even the process is easy & quick.
People from rural area are offered special lower interest rate if they opt for gold loan.
In gold loan, gold itself is kept as collateral.
Disbursement in gold loan often happens as fast as a few hours.
HDFC offers minimum of Rs. 50,000 loan amount against gold.
HDFC gold loan amount is decided on the gold’s purity, market price of gold and its karats.
If the gold ornaments you are keeping as collateral, contain precious stones, the loan amount is still determined on only gold not the precious stones.
HDFC offers in house gold evaluation.
Rejection in gold loan happens only if the borrower’s CIBIL score is not strong enough.