How to get a gold-secured loan: a step-by-step guide

A gold-secured loan is one of the quickest ways to get cash when you need it. The main security is your gold jewellery, so the process is simple and decisions are fast. Here is how the loan works, what the steps are and what to keep in mind.

What a gold-secured loan is

You pledge gold items — rings, earrings, necklaces, bracelets and so on — for the term of the loan. Once the loan is fully repaid, the items are returned. The value of the collateral directly affects how much you can borrow.

Key terms of the Finex Kredit gold-secured loan:

amount: AZN 100 to AZN 100,000;
term: 3 to 36 months;
annual rate: 32–42%;
commission: 1–3%;
age: 22–60;
repayment: annuity, i.e. equal monthly payments.

Step by step

1Apply online or visit a branch. The online form takes a few minutes and a specialist will contact you within 24 hours.
2Bring your gold items and your ID card.
3At the branch the items are valued: purity, weight and condition are checked.
4Based on the valuation, the amount, term and rate are agreed.
5You sign the agreement, the collateral is accepted and you receive the money.
6You make monthly payments on schedule. When the loan is closed, the items are returned.

How the valuation works

Valuation looks at the gold’s purity, net weight and the item’s condition. The weight of stones is usually deducted from the gold weight. The loan amount is set below the appraised value of the collateral to allow for price swings.

How the collateral is kept

At Finex Kredit collateral is valued properly, stored in rented bank safes and checked regularly. Cash collection is handled confidentially — one of the key conditions for keeping the collateral safe.

Payment example

Say you borrow AZN 3,000 for 12 months at 32% a year. On an annuity basis the monthly payment is AZN 295.42. Total repayment is AZN 3,545.05, of which AZN 545.05 is interest. With a 1% commission, the effective annual rate (FİFD) on this loan is about 39.84%.

A longer term lowers the monthly payment but increases total interest. You can compare options in the calculator.

Who it suits

people who need money urgently;
anyone bridging a short-term cash gap;
people who don’t want to sell their gold but want to use its value;
small business owners who need working capital quickly.

What to watch out for

Stick to the payment schedule — late payments can lead to extra costs and affect the collateral.
Before signing, ask about FİFD, commission and early-repayment terms.
Keep the collateral receipt and a copy of the agreement.
Don’t borrow more than you can repay, even if the collateral would allow it.

Common questions

Do I need a guarantor? Usually the collateral itself is the main security. A specialist will confirm the exact terms when reviewing your application.

Can I repay part of the loan early? Early repayment reduces the interest you pay. Check the terms before signing.

How changes in the gold price affect the loan

The gold price moves. That’s one reason the loan amount is set below the collateral’s appraised value: even if the price dips, the loan stays secured. For you as the borrower nothing changes — the monthly payment stays as agreed, and the gold is returned once the loan is repaid.

Which items are accepted

Jewellery is usually accepted — rings, earrings, chains, necklaces, bracelets. Purity, condition and composition are checked during valuation. Whether a specific item can be accepted is decided by the specialist at the branch.

Closing the loan

After the final payment the loan is closed and the items are handed back to you against signature. If you want to close the loan early, visit the branch: the outstanding balance will be calculated and the collateral returned once it’s paid.