Comparison of gold loan products between banks and NBFCs – a short video

Besides being a statement of fashion, gold jewellery also happens to be a good investment. That’s one of the reasons why most people don’t feel guilty about spending their earnings on gold. Many of us do own gold jewellery, most of which lies idle at home or is kept safely in a bank vault. Gold also happens to be one of the quickest ways by which you can avail loans from a bank or NBFCs.

There are 4 things to know about the comparison between banks and NBFCs.

  1. Value of the gold – Both the NBFCs and banks decide on the value of the gold after deducting the impurities and making charges. The value deducted usually comes around 25-30 percentage of the gross value of the gold jewellery. The process of valuation may vary depending on the bank and NBFCs. Make sure you approach 3 or 4 different lenders or banks before choosing a bank or NBFC.
  2. Loan to value ratio – The maximum LTV or Loan to Value ratio allowed by the RBI for banks and NBFCs are 75%. This means you could get a maximum value of gold loan from banks. For higher LTV loans, usually, the interest rates are high.
  3. NBFC or Banks – If you are looking for immediate money an NBFC would be a better choice as they disperse the loan instantly. It could take around 3-5 days before you get a loan from a bank. Loans get credited to the bank accounts while taking gold loans from banks whereas NBFCs could give you cash if the value of a gold loan is low.
  4. Interest rates – The maximum rate of interest charged by a bank could be around 17%-18% whereas the interest rates could go up to 28% when it comes to NBFCs. Comparing the interest rates a bank would be a better option to apply for gold loans.

If you are interested to know more please checkout our blog. The link to our blog is given below.


This blog is maintained by the Finaura team. Finaura is a solution that will help you find the best gold loan solution from gold loan company nearest to you. If you have any queries please feel free to contact us. Call us on +91 484 2388285 or email us at [email protected]

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