Eligible customers can apply for a Gold Loan through the following ways: Branch visit: You can visit your nearest branch and apply for a Gold Loan in person. Online form: Fill in our online form to have one of our representatives reach out to you. Customer care: You can also apply for a Gold Loan by calling our customer care number at 1800-1200-1200. You can alternatively email us at customercare@aubank.in Relationship Manager:Existing customers can also get in touch with their dedicated RMs to find out how to get a Gold Loan.

To apply for a Gold Loan, an applicant must fulfill the following eligibility criteria: Be a resident of India Age should be between 18 and 70 years Have a steady source of income Own the gold jewellery articles to be mortgaged Purity of gold jewellery should be in a range between 18 to 22 carats Non-income proof providers can only get a Gold Loan of up to INR 10,00,000.

The following are some essential fees and charges applicable to Gold Loan: Low Processing fees of up to ₹750 Stamping charges: As per state laws Penal charges Foreclosure charges (up to 90 days): 1.5% of the loan amount GST and other government taxes will be applied, which are over and above the scheduled charges. For details on fees & charges, Click here .

The following documents are required to apply for a Gold Loan: Identity & address proof (Aadhaar card, passport, driving license, voter ID, etc.) PAN Other relevant documentation

Valuation Methodology

Gold Rate : - The lower of the Spot price for the previous day’s closure rate for 22 carat or average rate of preceding 30 days’ closing price of 22 carat gold quoted by The Indian Bullion and Jewellers Association (IBJA) reduced by standard deviation for preceding 30 days closing rate. Net Weight : - Any non-gold item/parts (stone/cotton thread/Kundan/wax, etc) attached to the Gold Jewellery/Ornament will be deducted from the Gross Weight to arrive at Net Weight. (eg: Gross Weight- 100, Stone weight – 30, Net Weight – 70 (100-30). Loan to Value (LTV) : - The LTV is defined basis the margin Bank need to maintain as per RBI guidelines from time to time. Currently Bank offers up to 84% on Agri & consumption loans. Loan Eligibility : - Arrived basis the combination of net weight, gold rate & carat and applicable LTV. (Net weight * Gold Rate for the given carat * LTV). (Eg: Net Weight - 100 grams, Gold Per Gram Rate for 22K - Rs.10,000/-, LTV – 75%; Loan Eligibility is 100*10,000*75% = 7,50,000)

Gold Loans are secured loans that you can borrow by pledging your gold ornaments (falling within the range of 18 to 24 carats) as collateral. The loan amount is based on the quality of the gold ornament and is typically up to 75% of the gold value. You can use the borrowed amount for various purposes, including meeting business or personal requirements. Gold Loans are primarily taken for meeting short-term funding requirements, and the loan tenure ranges between 6 to 36 months. Compared to other categories of loans, Gold Loans are known for competitive and attractive interest rates.

How does a Gold Loan work?

Gold Loans are asset-backed loans, where you essentially pledge your gold ornaments as collateral for the loan amount. The Gold Loan procedure includes determining the weight and performing purity checks by the lender to assess the market value of the gold ornament. Once the value of gold is determined, the documents are verified to finalize the Gold Loan's terms and conditions that include determining the Gold Loan interest rate. As an asset-backed loan, the gold ornaments remain within the secure custody of the lender until the loan is repaid fully.

Is getting a Gold Loan a good idea?

Yes, it is. A Gold Loan offers flexibility in repayments as well as competitive interest rates. They are easier to obtain than personal loans, have quick processing time, and require minimal paperwork.

How do I get a Gold Loan from AU Bank?

You can simply visit the nearest AU Bank branch with your gold jewellery and basis documents to get the best value and interest rates on your gold loan, which will be disbursed to you over the counter against your gold jewellery in no time subject to the verification of gold and other documents that you submit. Approvals are at sole discretion of the Bank.

What is the interest rate on Gold Loan?

We offer Gold Loans at attractive and competitive interest rates. The Gold Loan interest rate is based on the prevailing market situation and repayment scheme selection made by the borrower depending on the credit profile. For example, a non-income-proof provider or person with a lack of steady income will be charged a higher interest rate than a person with a stable income generation source. Also, you will be charged a simple interest rate on the Gold Loan amount, which is fixed during the loan tenure and is calculated on a reducing balance basis.

How much loan can I get on gold?

Gold Loans have a higher loan-to-value ratio of up to 75% compared to any other mortgage-based loans, which means you can get up to 75% of the gold’s value as a loan. We provide Gold Loans starting from INR 10,000. However, many other factors affect the amount of the Gold Loan, including borrower’s profile, steady source of income, repayment schedule and tenure selected, the global movement in gold prices, valuation method used by banks, and prevailing interest rate in the market.

How do I repay a Gold Loan?

The Gold Loan repayments are flexible, and you can choose from the repayment options that best suit your finances.

Can I make partial payments?

Customers are allowed to make partial payments but security will be released only on closure of loan and repayment of all dues.

In case of default what happens to my gold?

The bank assists with convenient repayment modes. We also send periodic reminders to our customers before and after the due date to pay the dues and close the loan. A penalty is levied in case of any defaults on the due date as per the Service Fee reckoner. However, once the dues pass 90 days the bank as a last resort holds right to recover the dues by way of auctions of the gold collateral of the customer. The bank sends an auction notice to the customer prior to processing the same. We understand the affinity that the customer would have to their gold jewellery, and thus, the customer may settle the dues and collect the gold prior to the set auction date.

Is a Gold Loan available for short tenures?

Gold Loans are designed to meet short-term funding requirements and have shorter repayment tenures of 6 to 36 months, compared to personal loans, which have maximum repayment tenure of 5 years. You also get the option of renewing the loan at the end of the gold loan tenure and increasing the loan tenure further. While availing of the renewal facility, you can also use the top-up facility at the prevailing gold prices.

What is the installment schedule for loan repayment?

Installment schedule is normally equated monthly installments (it could be quarterly or Half yearly in case of Tractor loans) subject to the terms & conditions of the repayment schedule and Repayment instrument for EMI will be presented (as per registered repayment mode) on EMI Due date as specified in the schedule/sanction letter. To overcome operational issues ,holidays etc., It is advised to keep sufficient balance in bank accounts 2-3 days prior to due date of EMI ,for clearance of EMI on due dates ,to avoid penal Interest and other charges and avoid delinquency status. and further schedule can be tailored to customer's specific requirement at AU Small Finance Bank’s discretion. We do not allow balloon repayments or step up structures