Gold loans in the UAE
UAE is one of the top five highest consumers of gold in the world at $2.5 billion (approx.). Gold loans are slowly gaining ground in the UAE thanks to many factors including, but not limited to, a considerable South Asian population, which considers gold as a traditional form of investment passed on from generation to generation. The precious yellow metal is steadily rising in importance as a valuable investment option amongst Arab expatriates as well as GCC nationals.
Gold Loan Schemes in UAE
Emirates Money, subsidiary (wholly-owned) of Emirates NBD, was the first to offer gold loans to customers in the UAE in 2010. Customers can avail of up to 80% of the value of their precious yellow metal - bullion or jewellery - deposited in the vault of Dubai Multi Commodities Centre. The value of the yellow metal deposited is ascertained by testing methodologies which are non-destructive. The UAE exchange also offers gold loans at low interest rates. From funding a vacation to buying a car, gold loans offered by UAE exchange can be put to use for various purposes including business requirements. Under the gold loan scheme offered by UAE exchange, customers can repay their gold loans without any hassles by availing of flexible repayment options.
Emirates Money - Loan against Gold
A simple loan product offered by Emirates Money - Loan against Gold - allows customers to take loans against their gold ornaments, certificates, coins and bars. Customers can avail of gold loans for both personal and business requirements at attractive interest rates and simple documentation procedures.
Features of Emirates Money - Loan Against Gold
The salient features of Emirates Money -Loan against Gold are as follows:
- Value: Customers can determine the value of their gold deposits free of cost Determining
- Tenure: Customers can repay their gold loans in 36 months
- Loan Amounts: Customers can avail loan up to AED 5 million. Emirates Money will offer higher loan amounts to customers based on two factors - weight (net) of gold which is deposited by customers and purity.
- Security: The gold deposited by customers is stored in a secure vault.
- Interest Rates: Customers can avail of competitive interest rates.
- Security: Customers can avail of loans against gold certificates.
- Top Up facility: Customers can avail of top-up facility on the loans provided under three months.
Documents Required for Gold Loans
The important documents required are listed in the table below:
|Mandatory documents||Additional documents required for Self-employed persons and companies|
•Bank statements (3 months)
•Trade License and Memorandum of Association (copy)
•Power of Attorney
|Document||Proof (Any one)|
•Bank statement (three months)
UAE Exchange - Loans against Gold
UAE Exchange is a financial supermarket which provides various products and services including loans against gold. UAE Exchange offers gold loans at competitive rates with an easy disbursal process.
Features of UAE Exchange - Loans against Gold
The salient features of UAE Exchange - Gold Loans are listed below:
- Interest: UAE Exchange provides loans on simple interest and for the period the loan remains with it. The rate of interest is listed below:
- Easy approvals: Customers can avail of quick approval of loans.
- Repayments: Customers can make part repayments if they wish to depending on their requirements, subject to conditions.
|Amount (£)||Rate of interest (%)|
|20 to 2999||3.99 p.a.|
|3000 or/and above||2.75 p.a.|