Gold Loan

A Gold Loan is a secured form of loan in which the borrower has to pledge gold ornaments or gold coins as collateral with the lender. However, the loan against gold depends on the value of the gold offered for a mortgage. The loan obtained should be repaid in instalments along with the fixed rate of interest charged by the lender. Usually, a Gold Loan is offered for short to medium tenure. A Gold loan is one of the good options for instant liquidity that could be used for several personal and professional needs including wedding expenses, educational expense, business expansion, and others.

Unlike other secured loans, Gold Loans are not offered on the basis of the credit history or repayment track on the past loans and credit card bill dues. A Gold Loan is offered based on the value of gold pledged as collateral. However, the credit score will still be checked by the lender.