What is a Gold Loan?

  • When applying for a gold loan, customers put forth their gold items as collateral to avail of the loan.

 

  • The loan amount which is provided is a certain percentage, usually 80%, of the total value of the gold in rupees, based on:
    1. The market price of Gold
    2. The quality of Gold (how many karats and in what condition the jewellery is in)

A gold loan has become a formalised lending process. Earlier, moneylenders would lend money for gold before banks came about.

Find out why and when should you apply for a Gold Loan!

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