How to release pledged gold from a bank or gold loan lender

What "pledged" means

When you take a gold loan, you hand your gold ornaments to the lender, who keeps them safe until the loan is repaid. The gold is still yours, but you cannot take it back until the loan is cleared.

The usual way to release it

1. Ask for a closure statement. Request the exact amount needed to close the loan on a specific date, including principal, interest and any charges.
2. Check the figure. Compare it with your loan agreement. Ask about any pre-closure or part-payment charge.
3. Pay the amount. Pay through a method that leaves a record, and keep the receipt.
4. Collect your gold. Check every piece against your pledge receipt, and weigh or count it before you leave.
5. Get a closure letter. Keep the document that confirms the loan is closed.

Another way: sell the pledged gold

If you do not want to find the repayment money yourself, or you no longer need the ornaments, a buyer can purchase the gold at the day's price, pay your lender the loan payoff and give you the difference. This is how ClearKarat works. Read about it on our page on releasing pledged gold.

Documents to keep ready

• Photo ID.
• Loan account number and the lender's name.
• The pledge receipt or loan agreement.
• Authorisation, if someone else is collecting on your behalf.

Pitfalls to avoid

• Waiting too long. Interest keeps building and an overdue loan can end in an auction after notices.
• Not asking for a dated figure. The amount rises each day, so a figure without a date can be wrong by the time you pay.
• Skipping the check on return. Count and weigh your ornaments before you leave the counter.
• Several loans. If you have more than one loan against the same gold, get a figure for each.
• Handing money to a stranger. Pay the lender directly or through a buyer you have verified. Never send money before you hold a written slip.