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When and How to Get a Personal Loan to Buy Gold?
- Published on: 16 May 2024
Do you have the desire to take a personal loan to buy gold? Investing in it has shown significant gains as it has maintained a rise in its value over time, is stable when markets are fluctuating and is a liquid asset that can decrease the risk in your portfolio.
Knowing how to buy gold on EMI helps you purchase this valuable asset without hurting your budget. Up until 2012, financial institutions offered loans for the specific purpose of buying gold. However, the RBI banned this lending option due to several reasons, from consumer debt worries to economic stability.
Getting a personal loan for the purchase of gold may seem like a smart idea, but stop and think before you proceed. Experts generally do not recommend investing with borrowed funds due to a loan’s interest rate and the risk of default.
Move forward only if you have a repayment plan in place and get an affordable loan. If you plan to invest in digital gold, check the brokerage, taxes and your investment horizon too.
If you have decided to purchase physical or digital gold by borrowing funds, a personal loan may be ideal. Here’s why.
Personal loans are unsecured, so you do not need to risk assets for funds. If you plan to buy gold as an investment, there are better moves than pledging other assets for it. A collateral-free option works best in such a case.
After disbursal, you have no restrictions on usage. You can use a personal loan to buy gold:
Consider digital gold as it can reduce stress related to storage and purity and is easier to trade. If you have funds left after these purchases, you can use them for other expenses too.
When approving a personal loan, lenders check only a few factors to assess your eligibility; these are:
Such straightforward criteria help reduce the processing time, making it a great option to purchase gold on loan before its rate increases.
You can customize the loan’s EMI amount by choosing a tenure that works for you. This allows you to easily fit a large gold purchase within your monthly budget.
In the era of fintech advancements, you can compare multiple lender’s loan offers with just a few clicks and apply without ever leaving your home. From sending in your application to completing the KYC, the process is swiftly done online in just a few minutes.
Whether you’re getting a personal loan to finance your gold investment or for other reasons, you only need a few documents to prove your eligibility. Here are some common documents to submit when you apply for the Fibe Personal Loan.
| Type | Valid Documents |
|---|---|
| Photo ID cards | Aadhaar card, passport, PAN card or driver’s licence |
| Income proof | Bank statements or Salary slips for the last 3 months |
| Proof of address | Utility bills, rent agreement, Passport, Voter ID |
Apply for an Instant Cash Loan from Fibe with ease by following this process.
Once your application is approved, you will get the money in your bank account.
In this way, you can get a personal loan to buy gold without exhausting your savings. If you are looking for a loan to finance gold and other purchases, choose the Fibe Instant Personal Loan. Get up to ₹5 lakhs as per your eligibility and benefit from competitive interest rates and flexible repayment tenures.
With zero pre-closure charges and a secure digital journey with ISO 27001 certification, Fibe helps you safeguard your finances and data. Download our Personal Loan App or register on our website online to apply now.
Personal loans don’t have any restrictions on how you can use them. So, you can easily purchase gold on loan or use the funds to invest in gold EFTs, bonds, mutual funds and other types of digital gold.
You can avail a personal loan to buy gold and repay the loan amount in EMIs. At Fibe you can choose a tenure of up to 36 months to repay an Instant Personal Loan.
Yes, some financial institutions allow you to transfer your personal loan balance to a gold loan using your idle gold assets as security. This way, you can repay your loan at more pocket-friendly terms.
Yes. Generally, collateral-backed loans, such as gold loans, home loans or car loans, have a lower interest rate. However, if you want a loan for the purchase of gold, then a collateral-free personal loan can be ideal.
