IIFL vs Shriram vs Capri loans
Gold loans form a sizable portion of the lending market in India. There are plenty of players in both the unorganized sector and organized sector providing gold loans to the masses. Although the participants of the unorganized sector like jewellers, local money lenders, etc. have been a part of the business for decades, the new entrants of the organized sectors like public and private banks and NBFCs like IIFL, Shriram Capital, Capri Loans, and IndiaGold are some of the best gold loan providers and have made a remarkable progress in quickly capturing the market share.
The success that these NBFCs have been seeing for a couple of years can be attributed to the fact that these companies are able to provide comfort to the borrowers as these are governed by the regulators like Reserve Bank of India (RBI) while being able to provide new age solutions in the form of convenience offered by digital gold loan journey, and some conventional form of convenience like low cost loans, quick processing, high loan to value (LTV) ratio, and much more.
Lets delve deep into the product offerings by these new age NBFCs which has allowed them to grow exponentially well and quickly and capture the market share that they enjoy!
IIFL Gold Loans:
IIFL is one of the leaders in the gold loan market when it comes to the NBFCs. This success is backed by their extensive branch network providing multiple NBFC services including gold loans. The company enjoys a huge man power, and customer convenience backed solutions. IIFL’s gold loan application allows the borrowers to track their gold loan, make repayments towards interest as well as principal, along with many more features.
IIFL Gold Loan Benefits:
- Minimum Documentation : Gold loans when compared to other lending products like personal loans typically require a minimum documentation. This is due to the fact that the nature of the loan is such that the loan is secured by a collateral i.e. gold, essentially decreasing the risk exposure of the lender. This helps bring down the documentation required to secure these loans.
- Quick Approval : IIFL offers quick loan approval in just minutes, this ensures that the borrower is able to secure the funding at the earliest possible time helping them to fund emergency expenses. Other lenders like IndiaGold offers quick processing and quick disbursal in under 30 minutes*!
- Low Interest rates : IIFL gold loans are typically light on pocket as these attract low interest rates compared to other types of loans such as business loans, or personal loans. This means that the borrower can easily afford to make the repayment and close the loan at the earliest!
- Gold Pledged is Secured and insured : the gold pledged is placed securely in high security facility, and is insured offering maximum protection to the borrower’s collateral and invaluable peace of mind!
Following are IIFL gold loan terms and schedule fo charges:
| FEATURES | Particulars | | ----- | ----- | | Interest Rates | 0.99% onward p.m. (11.88% - 27% p.a.) Rates varies depending on scheme availed | | Processing fees | As per Scheme Construct | | Penal Charges | 0.5% p.m (6% p.a) + GST on outstanding due amount | | MTM Charges | INR 500.00 | | Stamp Duty & Other Charges | As per applicable laws of the state | | Auction Charges | INR 1500.00 | | Overdue Notice Charges | INR 200.00 per Notice | | SMS Charges | INR 5.90 per Quarter | | Part Payment Charges | NIL | | Pre-Closure Charges | NIL Minimum of 7 days interest will be charged if loan is closed within 7 days |
Shriram Gold Loans:
Shriram Finance is one of the most well known NBFCs in the lending space offering one of the best gold loan options out there. Their lending products range in categories like Personal Needs, Business Needs, and Green Finance. Offering loans such as Vehicle, gold, and personal loans in the personal needs category; commercial vehicle, working capital, and business loans in the Business Needs category; EV Vehicle loans, EV Charging station and solar panel financing in the Green Finance category.
However, gold loans are one of the largest contributors to their lending portfolio and fares well in the gold loan comparison between lenders of similar scale and size!
Following is Shriram gold loan features and overall offering explained in a simplified tabular format!
| Feature | Details | | ----- | ----- | | Loan Amount | Up to 75% of the gold's market value | | Interest Rate | Starting from 10% p.a. | | Loan Tenure | Flexible; minimum duration of 7 days | | Processing Fees | Minimal or zero processing charges | | Foreclosure Charges | None | | Repayment Options | Pay interest only during the loan tenure; principal can be repaid at the end | | Collateral Security | Gold ornaments stored securely in government-regulated safe rooms with electronic surveillance | | Insurance Coverage | Life insurance cover on the disbursed loan amount; in case of the borrower's demise, the loan is paid off and gold is returned to the family | | Credit History Impact | No impact; gold serves as collateral, reducing reliance on credit scores | | Eligibility Criteria | Age: 18–75 years; applicable to salaried, self-employed, professionals, business owners, and other individuals | | Required Documents | Identity Proof (e.g., Aadhaar, Passport, Driver's License, Voter ID, PAN Card); Address Proof (e.g., Utility Bills, Passport, Voter ID, Gas Connection Card) | | Loan Disbursal Time | Instant upon approval | | Loan Renewal Facility | Available |
Capri Gold Loans:
When compared to other aforementioned NBFCs, Capri is fairly new in the segment, however has shown remarkable improvement year on year in capturing the market share of the overall gold loan market. The company shows remarkable promise when considered their gold loan offering in terms of various customer centric features such as:
- No Requirement for Income Proof : Capri gold loan eligibility criteria is not difficult. They don’t ask for income proof to disburse loans to the borrowers. This is a great feature for borrowers who are in between jobs or do not have sufficient documentation to back up their income claims. This feature allows borrowers to secure funding quickly without having to worry about the strict eligibility criteria put forth by various lenders.
- Flexible Repayment Option : With Capri Loans, the borrower gets full repayment flexibility. Borrowers can repay loans in the form of fixed EMIs consisting of both principal as well as interest component, or may choose to go ahead with monthly interest payments with bullet payment towards principal route. This allows the borrower full flexibility to repay the loans as per their convenience.
- Collateral Security : Gold collateral is secured in secured vaults under CCTV surveillance, allowing the borrowers to enjoy peace of mind while they utilize their gold loan funds to the best extent possible!
- Quick Loan Processing : Capri offers quick gold loan processing, enabling the borrowers to secure funding quickly to fund their cash commitment with ease!
Following is an overview of gold loan offering by Capri Loans:
| Feature | Details | | ----- | ----- | | Loan Amount | Up to 75% of the total pledged gold value | | Capri Gold loan Interest Rates | Starting from ₹0.99 per month per ₹100 (approximately 11.88% p.a.) for MSMEs with Udyam Aadhaar | | Loan Tenure | 6 to 12 months | | Processing Fees | Minimal or as per scheme; includes charges like pre-auction (₹200), MTM (₹500), and post-auction (₹1,500) | | Foreclosure Charges | Nil | | Repayment Options | Interest payment options: monthly, quarterly, half-yearly, or upfront- Bullet repayment: pay both interest and principal at the end | | Collateral Security | Gold jewellery stored in AI-powered security vaults with 24/7 CCTV surveillance | | Insurance Coverage | Complimentary insurance equivalent to the pledged gold value | | Credit History Impact | No impact; gold serves as collateral, reducing reliance on credit scores | | Eligibility Criteria | Age: 18 years or above- Indian citizenship- No income proof required- No credit history required- PAN card mandatory for loans above ₹2 lakh | | Required Documents | Identity Proof: Aadhaar, Passport, Driving License, Voter ID, Government-issued ID- Address Proof: Aadhaar, Passport, Driving License, Voter ID, Government-issued ID, Electricity Bill, Ration Card, NREGA Job Card- PAN Card for loans above ₹2 lakh- Udyam Certificate for Business Gold Loans- Declaration and Proof of Agriculture or Allied Activity for Agriculture Gold Loans | | Loan Disbursal Time | Approximately 30 minutes for MSME loans | | Loan Renewal Facility | Available
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