You've Been Logged Out
For security reasons, we have logged you out of HDFC Bank NetBanking. We do this when you refresh/move back on the browser on any NetBanking page.
OK- Home
- PAY Cards, Bill Pay
- Money Transfer
- To Other Account
- To Own Account
- UPI (Instant Mobile Money Transfer)
- IMPS (Immediate Payment 24 * 7)
- RTGS (Available 24 * 7)
- NEFT (Available 24 * 7)
- RemitNow Foreign Outward Remittance
- Remittance (International Money Transfers )
- Religious Offering's & Donation
- RemitNow (For Expat)
- Forex Services for students
- Pay your overseas education fees with Flywire
- ESOP Remittances
- Visa CardPay
- Cards
- Bill Payments
- Recharge
- Payment Solutions
- Money Transfer
- SAVE Accounts, Deposits
- INVEST Bonds, Mutual Funds
- BORROW Loans, EMI
- INSURE Cover, Protect
- OFFERS Offers, Discounts
- My Mailbox
- My Profile
- Home
- PAY Cards, Bill Pay
- Money Transfer
- To Other Account
- To Own Account
- UPI (Instant Mobile Money Transfer)
- IMPS (Immediate Payment 24 * 7)
- RTGS (Available 24 * 7)
- NEFT (Available 24 * 7)
- RemitNow Foreign Outward Remittance
- Remittance (International Money Transfers )
- Religious Offering's & Donation
- RemitNow (For Expat)
- Forex Services for students
- Pay your overseas education fees with Flywire
- ESOP Remittances
- Visa CardPay
- Cards
- Bill Payments
- Recharge
- Payment Solutions
- Money Transfer
- SAVE Accounts, Deposits
- INVEST Bonds, Mutual Funds
- BORROW Loans, EMI
- INSURE Cover, Protect
- OFFERS Offers, Discounts
- My Mailbox
- My Profile
- Home
- PAY Cards, Bill Pay
- Money Transfer
- To Other Account
- To Own Account
- UPI (Instant Mobile Money Transfer)
- IMPS (Immediate Payment 24 * 7)
- RTGS (Available 24 * 7)
- NEFT (Available 24 * 7)
- RemitNow Foreign Outward Remittance
- Remittance (International Money Transfers )
- Religious Offering's & Donation
- RemitNow (For Expat)
- Forex Services for students
- Pay your overseas education fees with Flywire
- ESOP Remittances
- Visa CardPay
- SAVE Accounts, Deposits
- INVEST Bonds, Mutual Funds
- BORROW Loans, EMI
- INSURE Cover, Protect
- OFFERS Offers, Discounts
- My Mailbox
- My Profile
- Personal
- Resources
- Learning Centre
- ThisPageDoesNotCntainIconBorrow
- What Gold Loan does to your CIBIL score
Understanding the impact of Gold Loan on your CIBIL score

11 April, 2025
Synopsis
Gold Loans offer quick & hassle-free financing with minimal documentation.
Timely repayment of Gold Loans can improve your CIBIL score.
Maintain a good repayment record, avoid multiple loan applications & keep a low credit utilisation ratio.
A Gold Loan can help you secure hassle-free financing without extensive credit checks and documentation. You can simply pledge your gold jewellery and avail funds against them at a reasonable rate of interest. Other benefits of Gold Loans include easy eligibility criteria, multiple repayment options, and quick disbursal of funds.
However, one question that borrowers often ask is, “Does gold loan affect CIBIL score?”
This article discusses this question in detail and also explores how Gold Loans affect the CIBIL score of borrowers. Knowing it can help you make an informed decision.
What is a CIBIL score?
Before you can delve into the Gold Loan’s effect on the CIBIL score, you must know what a CIBIL score is. It is a three-digit number which represents your creditworthiness. Your CIBIL score can range between 300 and 900, with a higher score reflecting better creditworthiness.
The Credit Information Bureau of India Limited (CIBIL) calculates your CIBIL score based on your credit history, repayment behaviour, current outstanding debts, and various other factors.
A good CIBIL score, preferably over 700, is essential to get easy access to credit products such as loans and credit cards. A higher CIBIL score boosts your chances to qualify for these products and bargain for competitive interest rates with the lender.
Does Gold Loan affect CIBIL score?
If your CIBIL score is poor, it can impact on the gold loan, so timely repayment of loans and EMIs on Gold Loans increases CIBIL scores. When you apply for a Gold Loan, you are required to pay monthly interest payment for a specific tenure. In case you miss your monthly interest payable amount, it can cause a decline in your CIBIL score. However, you can still pay the missed EMI, and your CIBIL score will improve again gradually.
But in the worst case, if you default on your Gold Loan, it can cause irreparable damage to your CIBIL score. You may be marked as a Non-Performing Asset (NPA) in the credit bureau record, and this may prevent you from availing of any other loan in the future. In addition to this, you may also lose the gold jewellery that you have given to the lender as collateral.
How to improve your CIBIL score?
There are several ways in which you can improve your CIBIL score. When you avail of a Gold Loan and pay all the monthly interest on time, you build a clean credit history, which ultimately leads to an improvement in your CIBIL score. While this won’t happen immediately, timely payments of your Gold Loan monthly interest over the years will gradually build your CIBIL score.
In addition to this, you must refrain from applying for too many loans or credit cards within a short time frame. The ideal way to go about this is by repaying your existing loan and, only then, applying for a fresh loan.
Keeping a low credit utilisation ratio can also help you improve your CIBIL score. The credit utilisation ratio refers to the ratio of the revolving credit you are using to the total available credit limit.
Your CIBIL score is a highly crucial parameter. It helps a lender determine your creditworthiness and decide if it should approve your loan application or not. While a Gold Loan has no direct impact on your CIBIL score, it can prove to be detrimental if you default on your loan repayment. On the positive side, repaying a Gold Loan on time can help you build your CIBIL score.
HDFC Bank offers Gold Loans with highly competitive interest rates and flexible repayment options, so you aren't stressed about repayment. Check it out today and get access to the much-needed funds without any worries.
Disclaimer: * Terms & conditions apply. Gold Loan disbursal at sole discretion of HDFC Bank Ltd. The information provided in this article is generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances.