Gold Loan is a secured loan where borrowers pledge their gold ornaments or coins as collateral to obtain funds. It is a quick and convenient financing option, widely used for meeting personal, educational, business, or emergency expenses.

Key Features:

• Collateral-Based: Gold jewelry or coins are pledged to secure the loan, making it accessible even for those with limited credit history.
• Quick Processing: Minimal documentation and quick approval make it an ideal choice for urgent financial needs.
• Loan Amount: Determined by the value and purity of the gold, typically offering a percentage of the gold's market value (Loan-to-Value ratio).
• Flexible Repayment Options: Includes EMI, bullet repayment, or interest-only plans based on the borrower’s convenience.
• Low Interest Rates: Compared to unsecured loans, gold loans have lower interest rates due to the collateral.
• Short Tenure: Usually offered for a tenure ranging from a few months to a couple of years.
• Retention of Ownership: Borrowers retain ownership of the gold, which is returned upon full repayment.

Gold loans are a practical and efficient way to leverage idle assets for financial liquidity while offering flexibility and affordability.