Gold is considered a precious metal that is popularly used for various purposes such as industrial, commercial, and investment purposes.
A gold loan is a secured loan you can get by pledging gold or gold ornaments as collateral with a lender, i.e., a bank or NBFC. The lender would, in turn, give you a loan amount based on the market value of your gold. Once a gold loan is repaid along with interest, the gold is returned.
Unlike other secured loans, there are no restrictions on the end usage of the funds availed. As a result, it is a quick and easy way of fulfilling one’s financial needs. Be it a wedding, family vacation, or your child’s higher education.