Gold Loan - Definition, Features & Benefits Unleash the power of your gold: Get to know gold loans What is a gold loan? A gold loan is a secured loan taken by a borrower from a lender by pledging their gold articles (within a range of 18-24 carats) as collateral. The loan amount provided is a percentage of the gold pledged, depending on the gold’s current market value and its quality. What are the features of a gold loan? Minimal documentation A borrower is only required to submit their KYC documents, like ID and address proof, for loan approval. Faster disbursal The gold loan amount can be disbursed to the borrower within 30* minutes of loan approval. No impact of credit history A borrower’s past credit history or a low CIBIL score has no impact on their ability to avail a gold loan. What are the benefits of taking a gold loan? Lower interest rate Gold loans have a lower rate of interest than business and personal loans. Wide range of products Based on the requirement, a borrower can choose from term based, EMI based and overdraft based gold loans. Flexible tenure A gold loan can have a tenure of 3 to 12 months.
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