Gold can give you a loan in need when you urgently require money. In India, gold loans have become increasingly popular as they offer a quick and convenient way to access funds. A gold loan is a type of secured loan where you pledge your gold ornaments or jewellery as collateral. The amount of loan you can avail depends on the value of the gold you pledge. In this article, we will discuss everything you need to know about gold loans and how they can help you in times of urgent need.
How does a gold loan work?
To get a gold loan in need of money, you need to visit a bank, NBFC, or any financial institution that offers this service. You will need to carry your gold ornaments or jewellery and provide an ID proof and address proof. The lender will then assess the gold and determine the loan amount you are eligible for. Typically, lenders offer up to 70% of the value of gold as a loan. Once your application is approved, the lender will disburse the loan amount either in cash or through a bank transfer. You can repay the loan in monthly instalments or in a lump sum after the loan tenure ends.