Bandhan Bank Gold Loan – Complete Guide for Borrowers

Gold is one asset that Indian households have trusted for ages, not only for ornamentation, but it has also always been a highly liquid asset available instantly in times of need. As financial needs grow, people are turning to gold loans to get liquid cash without having to part with their jewelry.

Bandhan Bank Gold Loan is one such option, offering competitive interest rates, flexible repayment plans, and quick disbursement. Here’s everything you need to know about features, eligibility, documents, interest rates, repayment methods, and even some smart tips to secure the best deal.

1. What is Bandhan Bank Gold Loan?

Bandhan Bank Gold Loan is a secured loan product, where you pledge your gold ornaments as collateral. The bank will assess the value of your gold and offer you a loan amount based on this valuation. You can take back your gold only when you have made full repayment of the loan.

2. Key Features of Bandhan Bank Gold Loan

• Loan Amount: ₹10,000 to ₹25 lakh (varies by gold purity and weight)

• Loan Tenure: 3 months to 36 months

• Interest Rate: Competitive, starting from around 9% p.a. (subject to change)

• Processing Fee: Nominal charges

• Security: Only gold jewellery is accepted, not gold coins or bars

• Quick Disbursal: Funds are credited within hours of approval

3. Eligibility Criteria

To apply for a Bandhan Bank Gold Loan, you must:

• Be an Indian citizen above 18 years of age

• Own gold ornaments of required purity (generally 18–22 carats)

• Have a valid ID and address proof

• Meet the bank’s internal loan-to-value (LTV) requirements

4. Documents Required

• Identity Proof: Aadhaar Card, PAN Card, Passport, Voter ID, Driving License

• Address Proof: Utility Bill, Aadhaar Card, Passport, Ration Card

• Photographs: Passport-sized

• Additional: PAN Card mandatory for higher loan amounts

5. How to Apply for a Bandhan Bank Gold Loan

First, locate a Bandhan Bank branch near you that offers gold loan services. Then you have to show this person at the bank all your shiny gold jewelry so they can check its purity and weight. The amount of money you can borrow depends on the rules made by India’s significant money leaders, but you can borrow up to 75% of what your gold is worth.

Please bring identification documents that prove your identity, such as an ID, and ensure you sign the provided form. If everything is good and they say it’s okay, they will deposit the money into your bank account or provide you with a cheque for the amount of your gold.

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6. Interest Rates & Charges

Note: Rates and fees are indicative and subject to change without notice. Always confirm with the bank.

7. Repayment Options

a) EMI Method

Pay fixed monthly instalments consisting of principal + interest.

b) Bullet Repayment

Pay interest periodically and settle the principal at the end of the tenure.

c) Interest-Only Payment

Pay only the interest monthly and the principal at the end of the loan term.

8. Advantages of Bandhan Bank Gold Loan

• Quick Processing: Minimal paperwork, instant disbursal

• Flexible Tenure: Short and long-term options

• No Credit Score Dependency: Suitable even for those with low CIBIL scores

• Secure Storage: Gold is kept in bank vaults under high security

• Prepayment Benefits: Close the loan early without heavy penalties

9. Things to Consider Before Applying

• Always check the LTV ratio to know how much you’ll get for your gold.

• Compare interest rates with other banks to ensure you get the best deal.

• Understand repayment terms to avoid default.

• Ensure your gold is hallmarked for accurate valuation.

10. Example Loan Calculation

Gold Weight: 50 grams of 22K gold
Market Price: ₹5,500 per gram
Total Value: ₹2,75,000
LTV (75%): ₹2,06,250 (loan amount)
Interest Rate: 10% p.a.
Tenure: 12 months
EMI: ~₹18,100 (if EMI method is chosen)

11. How to Get the Best Deal

• Take advantage of special bank campaigns to secure lower interest rates.

• Maintain a good relationship with your branch for personalised offers.

• Opt for shorter tenures to reduce total interest paid.

12. Safety of Your Gold

Bandhan Bank ensures 100% safety by:

• Storing gold in high-security vaults

• Providing insurance cover for pledged ornaments

• Following RBI guidelines for loan disbursal and gold storage

Conclusion

A Bandhan Bank Gold Loan can be a smart way to unlock the value of your gold without parting with it. Whether you need funds for education, business, medical emergencies, or personal needs, this loan offers speed, security, and flexibility. Just make sure to borrow responsibly, choose the right repayment plan, and compare offers to get the most out of your gold. Apply NOW

Disclaimer: This article on Bandhan Bank Gold Loan is written for educational and informational purposes only. It does not promote or guarantee any financial product. Loan terms, interest rates, and eligibility may change as per Bandhan Bank’s policies. Readers are advised to verify all details before applying.