May 26, 2024

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Shining Bright: A Deep Dive into IIFL’s Gold Loan Offerings

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Gold Loans are considered to be a secured form of loan raised by the borrower from the lender by pledging gold ornaments with a purity between 18 and 24 carats as collateral. The loan amount can be up to 80% of the market value and quality of the gold.

Gold loans are the simplest and safest way to procure funds to meet immediate requirements at an attractive rate of interest. IIFL Gold Loan can be availed with minimal documentation and secure storage to get quicker funds. This loan can be utilised to meet weddings, education, business expansion, and other similar purposes.

IIFL Gold Loan – A Snapshot
Interest Rate 11.88% to 27% p.a.
Repayment Tenure Up to 2 years
Loan Amount Minimum INR 3,000 or the value of 1 gram of gold on a particular day, whichever is more
LTV Ratio Up to 75% of the value of gold pledged as collateral
Processing Fees Depends on the gold loan scheme availed

Factors Affecting IIFL Gold Loan Interest Rates

Mentioned below are the factors affecting the IIFL Gold Loan Interest Rate:

Loan Amount: 

The loan amount helps in determining the gold loan interest rate. IIFL Finance provides up to 75% of the total value of the gold that is pledged. Also, the loan amount and repayment tenure are considered to determine the interest rate applicable to the gold loan.

Gold Value:

The market value of gold directly affects the gold ornaments that are pledged as collateral. The higher the purity of gold, the more valuable the metal in your gold asset, and the lower the interest rate.

Market Conditions:

Changes in market demand affect the cost of the gold loan and interest rates. If the price of gold is high, the lender’s risk is low; on the contrary, if the price of gold is low, the lender’s risk increases, and the interest rate will increase further.

Repayment Frequency: 

As per the requirement, one can choose to repay the loan monthly, quarterly, or yearly. The rate of interest would depend on the loan tenure.

IIFL Gold Loan Interest Rates and Charges

Mentioned below are the IIFL Gold loan interest rates and charges: 

Particulars Rates and Charges
Interest Rate 0.99% onward p.m.
(11.88% – 27% p.a.)
Rates may vary depending on the amount of loan and frequency of repayment.
Processing Fee INR 0 onwards
Varies depending on the scheme availed
MTM Charges INR 500
Value an asset to reflect its current market rate.
Auction Charges INR 1500
Overdue Notice Charges INR 200 (Per Notice)
SMS Charges INR 5
SMS Charges Per Quarter (Payable On Closure Loan): INR 5

Calculation of Gold Loan Interest Rates

Mentioned below are the two main factors affecting the calculation of Gold Loan Interest Rates:

Loan Amount: 

The amount to be borrowed is the main factor in calculating the interest rate on a gold loan. The more the loan amount, the higher the overall interest rate.

Loan Tenure: 

The loan tenure mentions the period within which the loan is to be repaid. The higher the loan tenure is, the lower the interest rate.

Eligibility Criteria

Mentioned below are the eligibility parameters that should be met by the borrower in order to apply for an IIFL Gold Loan:

  • An applicant can be a salaried, non-salaried, or self-employed individual.
  • The applicant may not submit any proof of income to avail of the gold loan.
  • The minimum age of an applicant should be 18 years.
  • The maximum age of an applicant should be 70 years at the time of disbursal of the loan.
  • The maximum age of an applicant should be 72 years at the time of renewal of the loan.
  • The gold purity being pledged should be between 18 and 22 carats.

Documentation Required

Mentioned below is the list of documents required to apply for IIFL Gold Loan:

Identity Proof Accepted:

  • Aadhaar Card
  • Valid Passport
  • PAN Card
  • Valid Driving Licence
  • Voter ID Card
  • Bank Statement

Address Proof Accepted:

  • Aadhaar Card
  • Valid Passport
  • Ration Card
  • Electricity Bill
  • Valid Driving Licence
  • Voter ID Card
  • Bank Statement

Types of IIFL Gold Loans

Mentioned below are the different types of IIFL Gold Loans available:

IIFL Gold Loans at Home

Purpose: 

It allows borrowers to avail themselves of the gold loan at their doorstep to meet their personal, professional, and business-related needs by pledging gold as their collateral.

Loan Tenure

The period to repay the gold loan can go up to 2 years.

LTV Ratio 

It can be up to 75% of the total loan value of gold pledged as collateral.

IIFL Gold Loan for Women

Purpose

It allows both salaried and self-employed women to raise loans to meet their personal, professional, and business-related requirements by pledging gold jewellery or ornaments as collateral or security.

Loan Tenure

The period to repay the gold loan can go up to 2 years.

LTV Ratio 

It can be up to 75% of the total loan value of gold pledged as collateral.

IIFL MSME Gold Loan

Purpose

It helps entrepreneurs to avail of loans to take care of their business needs by pledging gold ornaments or jewellery as collateral.

Loan Tenure

The period to repay the gold loan can go up to 2 years.

LTV Ratio 

It can be up to 75% of the total loan value of gold pledged as collateral.

IIFL Gold Loan for Education

Purpose

It helps to procure funds by pledging gold assets to meet the tuition fee expenditure. It also allows borrowers to purchase the study materials or manage any of the educational expenses.

Loan Tenure

The period to repay the gold loan can go up to 2 years.

LTV Ratio 

It can be up to 75% of the total loan value of gold pledged as collateral.

IIFL Agriculture Gold Loan

Purpose

To enable farmers to meet the expense of seeds and fertilisers, make investments in agricultural equipment or any unexpected contingencies.

Loan Tenure

The period to repay the gold loan can go up to 2 years.

LTV Ratio 

It can be up to 75% of the total loan value of gold pledged as collateral.

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