2 min read
05 Jan 2021

Everything about gold loan locker facilities

Gold has been a popular mode of investment, especially in India. Hence, this country holds the world’s largest private gold reserve. Besides its aesthetic purposes with ornaments, gold can be an effective mode of solving any financial crisis. One can obtain a substantial amount by mortgaging their valuable gold.

When an individual mortgages his/ her valuable gold to the concerned financial institution, the latter keeps the pledged assets safely and with optimum security in their locker. To ensure the top-notch safety of their pledged high-value asset, individuals need to select the best gold loan from leading financial institutions, or they can apply for locker facilities extended by almost every financial institution.

Steps to know about the gold loan locker facilities

Financial institutions across India provide the lowest gold loan interest rates and borrower-friendly terms. This encourages individuals willing to apply for gold loan at affordable rates and terms. However, before moving forward, individuals need to consider certain factors to obtain the best deals for them.

1. Loan quantum

One of the primary things to consider when choosing a gold loan is the availability of substantial funding against valuable gold items. Moreover, financial institutions extend loan amounts based on two factors. These are the current market rate of gold and LTV ratio mandated by RBI. The former defines the evaluation of pledged gold items based on the weight and purity of gold, and the latter involves the percentage of LTV set by RBI, following which lenders can extend the loan amount. Based on these factors, borrowers can avail themselves of a considerable amount.

2. Repayment schemes

Reputed financial institutions offer flexible gold loan repayment options, and individuals can choose their preferred option based on their affordability. For example, they can pay the overall interest amount at the beginning of the tenor and pay the principal later. Alternatively, they can pay interest amounts monthly or quarterly or choose the traditional EMI payment method.

Besides understanding gold loan details and repayment options, individuals need to know about the locker facilities extended by financial institutions to safely store their gold articles.

3. Locker eligibility

The eligibility for availing of a locker becomes more flexible when an individual is an existing customer of the concerned financial institution.

4. Charges

Locker facilities extended by financial institutions are only available for existing customers. Even for them, it comes as an additional fee in the form of locker charges. The charges can go as high every year if individuals demand larger lockers.

5. Nomination

Individuals need to nominate someone to take care of their assets in the event of their demise. If two or more persons own the locker, then the concerned nominee can still get access to the owner’s assets in the event of demise.

What is a gold loan, and how to avail locker facilities?

Gold loans are secured credit variants where individuals are required to pledge their gold articles as collateral. It is similar to other secured financing options where individuals can receive their collateral after completing the repayment.

However, individuals need to submit substantial and pure gold articles to enjoy gold loan benefits such as high loan amounts, affordable rates, etc.

To keep pledged items secured, individuals can avail locker facilities extended by financial institutions. To avail of a gold locker in India, individuals need to fill out an application form, submit KYC documents and sign a locker agreement. Financial institutions will pay gold locker charges in the first year, after which the amount will be imposed on the customer annually.

Benefits of locker facilities

Here are the benefits of gold bank locker facilities for the customers:


Lockers offered by financial institutions are undoubtedly safer than keeping them in the house. This is because financial institutions have secured infrastructure with their safe vaults, upgraded electronic surveillance, and entry and exit monitoring. It makes them a preferred option for customers. However, as per RBI guidelines, financial institutions are not liable to compensate for any loss or damage of gold articles.

No restriction of items

With the lockers availed from a financial institution, customers can keep any items inside them. There is no restriction on items in the locker facility. Apart from gold articles, individuals can keep any valuable items of their preference.

No annual locker charges

These lockers from financial institutions are free from locker charges that must be paid annually. This allows customers to save a substantial amount that one had to bear to ensure their pledged gold’s safety.
Thus, individuals can ensure their mortgaged gold’s safety by availing locker facilities from any reputed financial institutions. Alternatively, they can select the best gold loan from leading financiers like Bajaj Finserv, who keeps the high-value pledged items in the locker or vaults with optimum security.

While care is taken to update the information, products, and services included in or available on our website and related platforms/websites, there may be inadvertent inaccuracies or typographical errors or delays in updating the information. The material contained in this site, and on associated web pages, is for reference and general information purpose and the details mentioned in the respective product/service document shall prevail in case of any inconsistency. Subscribers and users should seek professional advice before acting on the basis of the information contained herein. Please take an informed decision with respect to any product or service after going through the relevant product/service document and applicable terms and conditions. In case any inconsistencies observed, please click on reach us.

*Terms and conditions apply