How to Take a Gold Loan from Axis Bank – Step-by-Step Guide
When financial needs arise unexpectedly—be it for education, medical treatment, business, or any personal reason—a gold loan can provide quick relief. Among trusted lenders in India, Axis Bank offers a fast and hassle-free gold loan service by allowing individuals to use their gold ornaments as collateral.
This guide explains everything you need to know about getting a gold loan from Axis Bank, including eligibility, documents, application process, repayment options, and FAQs.
✅ Who is Eligible for a Gold Loan from Axis Bank?
Axis Bank has a simple eligibility policy for gold loans. You can apply if:
- You are an Indian citizen between the age of 18 and 75 years.
- You possess gold ornaments or coins with a minimum purity of 18 karats.
- The bank accepts gold jewelry and bank-issued gold coins (up to 50 grams per customer).
No income proof is required, making it suitable for salaried individuals, self-employed professionals, and even homemakers.
🧾 What Documents Are Required?
To apply for a gold loan, you need to submit the following documents:
- Proof of Identity: Aadhaar card, PAN card, passport, voter ID, or driver’s license.
- Proof of Address: Utility bill, Aadhaar card, rent agreement, or passport.
- Recent passport-size photographs.
- Filled-in gold loan application form.
The bank may request additional documents based on the loan amount or other internal policies.
🛠 How to Apply for a Gold Loan?
Option 1: Walk-In (Offline Mode)
Visit any nearby Axis Bank branch that offers gold loan services and follow these steps:
- Carry your gold ornaments and required documents.
- Complete and submit the application form.
- The bank’s valuer will inspect your gold for purity and weight.
- Based on the valuation, the bank will inform you of the eligible loan amount.
- If you accept the offer, the loan is processed and disbursed—usually within a few hours.
Option 2: Online Enquiry
You can also start the process online by filling out a basic form with your name, phone number, and location. Once submitted, a bank representative will call you to schedule an appointment or guide you to the nearest branch. However, physical gold valuation must still be done at a bank branch.
💰 Loan Amount, Tenure, and Interest Rates
Here are the key loan features you should know:
- Loan Amount: Minimum ₹25,001 and up to ₹40 lakhs depending on the gold’s value.
- Loan Tenure: Flexible from 6 months to 36 months.
- Interest Rate: Starts around 17% per annum (subject to change based on market conditions).
- Processing Fee: 0.5% of the loan amount or a minimum of ₹300.
- Gold Valuation Charges: Vary between ₹500 to ₹1,500.
- Foreclosure Charges: 2% if closed within six months; usually waived after that.
🧮 Repayment Options
Axis Bank provides multiple repayment plans for customer convenience:
- Bullet Repayment: Pay interest periodically or at the end of the term, and repay the principal at maturity.
- EMI (Equated Monthly Installments): Pay a fixed monthly amount that covers both interest and principal.
- Overdraft Facility: Withdraw funds as required within the approved limit. Interest is charged only on the amount used.
🔒 Security and Handling of Gold
Axis Bank ensures that your gold is securely packed and stored in high-security vaults. The entire process is transparent, and you receive a receipt or acknowledgment for the gold pledged. Once the loan is fully repaid, the gold is returned in its original form.
❓ Frequently Asked Questions (FAQs)
1. How much gold loan can I get from Axis Bank?
You can avail up to ₹40 lakhs based on the weight and purity of your gold.
2. Do I need to visit the branch even if I apply online?
Yes, gold must be physically evaluated at the branch before the loan can be approved.
3. Is PAN card mandatory for a gold loan?
Yes, PAN card is mandatory if the loan exceeds ₹50,000, as per regulatory norms.
4. How long does it take to get the loan disbursed?
Gold loans from Axis Bank are generally disbursed within a few hours on the same day.
5. Can I close the loan early?
Yes, you can repay the loan before the tenure ends. Foreclosure charges may apply if closed within six months.
6. What happens if I fail to repay the loan?
If the loan is not repaid on time, the bank may auction your gold after giving proper notice. It is advisable to pay on time to avoid this.
7. Will my credit score be affected?
Yes, repayment behavior on a gold loan can impact your credit score. Timely payments can improve your CIBIL score.
🏁 Final Words
A gold loan from Axis Bank offers a fast and reliable way to access funds without selling your valuable assets. With minimal paperwork, flexible repayment plans, and secured handling of your gold, it’s a practical financial solution in times of need. Whether you’re a salaried person, a business owner, or a homemaker, this option can help you meet your short-term money needs with ease.
If you plan to apply, ensure that your documents are in order and choose a repayment method that best suits your financial capacity.
