Know More About Gold Metal Loan scheme

Understanding how gold metal loan scheme offers easy access to working capital for gold-based businesses. Avail secured loans against gold metal at competitive rates with convenient repayment options.
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Gold Loan
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2 mins
03 May 2025

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 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 rate and GML loan interest rate 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.

Features and benefits of gold metal loan schemes

  • Addresses working capital needs for jewellery manufacturers.
  • Offers two types of facilities: Fixed term Gold Metal Loans and Gold Overdrafts.
  • Provides immediate gold delivery with the option to fix the gold price within 180/270 days.
  • Simplifies repayment in equivalent INR.
  • Competitive interest rates ensure borrower-friendly terms.
  • Grants flexibility and convenience for quick fund access.
  • Aids in cash flow management and business expansion.
  • Supports smooth operations in the Gems and Jewellery industry.
  • Ensures reliable service through extensive partnerships with reputable bullion suppliers and logistics firms.
  • Maintains commitment to providing competitive pricing and expedited processing.

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.

General eligibility criteria for gold metal loan:

Criteria

Details

Applicant Type

Individuals or business entities (proprietorships, partnerships, companies)

Age

21 to 70 years (may vary across lenders)

Citizenship

Indian residents

Purpose of Loan

Business or trading in gold; not for personal use

Creditworthiness

Assessed by lenders, especially for large-value loans

 

General documents required:

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

How Bajaj Finserv Gold Loan is different

Bajaj Finserv Gold Loan stands apart as it caters to individuals who are seeking quick funds against pledged gold jewellery, not just gold metal. With features like quick disbursal, minimal paperwork, competitive interest rates, and convenient repayment options, Bajaj Finance makes gold loans more accessible and convenient compared to traditional GML schemes that primarily serve manufacturers.

Disclaimer

1. Bajaj Finance Limited (“BFL”) is a Non-Banking Finance Company (NBFC) and Prepaid Payment Instrument Issuer offering financial services viz., loans, deposits, Bajaj Pay Wallet, Bajaj Pay UPI, bill payments and third-party wealth management products. The details mentioned in the respective product/ service document shall prevail in case of any inconsistency with respect to the information referring to BFL products and services on this page.

2. All other information, such as, the images, facts, statistics etc. (“information”) that are in addition to the details mentioned in the BFL’s product/ service document and which are being displayed on this page only depicts the summary of the information sourced from the public domain. The said information is neither owned by BFL nor it is to the exclusive knowledge of BFL. There may be inadvertent inaccuracies or typographical errors or delays in updating the said information. Hence, users are advised to independently exercise diligence by verifying complete information, including by consulting experts, if any. Users shall be the sole owner of the decision taken, if any, about suitability of the same.

Frequently asked questions

How does the gold metal loan work?

In this scheme, the bank offers working capital funding to jewellery makers with Metal Gold Loans. Jewellers can borrow gold from the bank to make jewellery, which they can then sell in the local market or export.

Who can avail of a Yellow Metal (Gold) Loan?

A Yellow Metal (Gold) Loan can be availed by individuals, business owners, and self-employed professionals who pledge gold jewellery as collateral. It is ideal for those needing quick funds for personal or business needs without selling their gold assets.

How is a Gold Metal Loan different from a regular Gold Loan?

A Gold Metal Loan (GML) provides actual gold metal, mainly to jewellery manufacturers and exporters, for production purposes. In contrast, a regular gold loan offers cash against pledged gold jewellery, catering to individuals’ urgent financial needs or personal requirements.

What is the interest rate for a GML (Gold Metal Loan)?

The interest rate for a Gold Metal Loan generally ranges between 7% and 12% per annum, depending on the lender, tenure, and loan amount. Specific lenders like Bajaj Finserv offer competitive rates, ensuring affordability and flexible repayment options for eligible jewellery businesses.

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