Gold Metal Loan scheme

What is gold metal loan scheme?

Gold Metal Loan (GML) is a specialised financial solution designed mainly for jewellery manufacturers. It enables them to borrow gold metal instead of cash, helping them meet their manufacturing needs without straining cash flow. What is Gold Metal Loan? It is a facility where manufacturers take gold metal, craft it into jewellery, sell the jewellery, and then repay the loan. The Gold Metal Loan scheme, or the GML loan, typically allows domestic jewellers to borrow gold for up to 180 days, while exporters get an extended tenure of 270 days.
 

The gold metal loan interest rates are generally competitive, making it a cost-effective financing option. By availing a GML loan, manufacturers can improve working capital without blocking large sums of money upfront. Do not forget to check gold loan eligibility before applying to ensure you qualify for the desired amount.

Key features and benefits of gold metal loan schemes

Gold metal loan schemes are designed to give jewellery manufacturers a smart and convenient way to meet their working capital needs. These schemes not only ensure smooth business operations but also provide flexibility in managing funds. Here are the highlights:

• Meet working capital needs of jewellery manufacturers with ease.
• Choose between two facilities: Fixed-term Gold Metal Loans or Gold Overdrafts.
• Immediate gold delivery with the option to lock in gold price within 180/270 days.
• Repay conveniently in equivalent INR.
• Competitive interest rates ensure affordability.
• Enjoy flexibility and quick access to funds when needed.
• Smooth cash flow management to support growth.
• Reliable service backed by trusted bullion suppliers and logistics partners.

Quick processing and fair pricing for a hassle-free experience.
 

Interest rate on gold metal loan

In India, the gold metal loan interest rate typically ranges from 7% to 12% per annum depending on the borrower's collateral. A well-structured rate makes borrowing affordable and helps in maintaining steady operations. The GML loan interest rate usually depends on factors like tenure, facility type, and market-linked benchmarks. 

Eligibility and documentation for gold metal loan

A Gold Metal Loan (GML) is a specialised form of gold loan designed mainly for jewellery manufacturers and businesses involved in the gold trade. Unlike regular gold loans where individuals pledge gold and receive funds, GML provides actual gold metal to manufacturers, who repay it after selling finished jewellery. Here’s an overview of the general eligibility and documentation.
 

Documents required for gold metal loan

To apply for a gold metal loan scheme, applicants need to provide valid KYC and financial documents. The list of required papers varies slightly for individuals and companies, ensuring smooth verification and loan processing.

For individuals:

• PAN Card (mandatory), Aadhaar, Passport, Voter ID, or Driving Licence
• Proof of business (GST certificate, trade licence, business registration)
• Bank statements (usually last 6 months)
• Passport-size photograph

For companies/firms:

• Company PAN, incorporation certificate
• Partnership deed, MOA/AOA
• Board resolution or POA
• KYC of directors/partners
• Audited financials or ITRs for large loans