Gold loans are a fast and secure way to raise funds by pledging gold jewellery or coins.
What is a Gold Loan?
It is a secured loan, where gold is kept as collateral by the lender.
Features:
- Lower interest than personal loans
- Quick approval
- Short-term loan
Advantages:
- Minimal documentation
- No income proof required
- High loan-to-value ratio
Risks:
- Gold auction if EMIs not paid
- Not ideal for long-term needs
Gold loans are best for short-term financial requirements and emergencies.
