What is a Gold Loan?

Gold loan (also called loan against gold) is a secured loan taken by the borrower from a lender by pledging their gold articles (within a range of 18-24 carats) as collateral. The loan amount provided is a certain percentage of the gold, typically upto 80%, based on the current market value and quality of gold

What are the benefits of going for a gold loan?

Gold loan is similar to personal loan in meeting your immediate financial requirements, be it an international education, marriage expenses, covering medical emergencies or any other personal use.

Quick Disbursal : Minimum documentation leads to faster processing of gold loan due to its secured nature.

Flexibility of Use : Since there is no monitoring of the end use, it gives you the flexibility to use the loan for any type of expense.

Secured Loan Type : You are not required to submit any other security/collateral to the lender other than the pledged gold ornaments.

Lower Interest Rate : Interest rates on gold loans are on the lower side when compared to personal loan, since gold serves as collateral.

Liquidate your idle asset : An idle asset, gold is seldom used for generating money. Hence gold loan is the perfect solution to raise capital and use the fund when you require money to meet your financial needs. It is also more secure in the confines of a bank’s or a financial institution’s locker than your home.