Frequently Asked Questions
What is a Gold Loan?
A Gold Loan is a secured loan where you pledge your gold ornaments or coins as collateral to borrow funds. It’s typically used for personal, business, or emergency expenses.
How much loan can I get against my gold?
The loan amount is typically 75-90% of the gold’s market value, depending on the lender's policies, the purity of gold, and the loan tenure.
What is the interest rate for a Gold Loan?
Gold Loan interest rates generally range from 10% to 24%, depending on the loan provider and the loan amount.
What type of gold can be used as collateral?
You can use 18 carat to 24 carat gold, including gold ornaments, coins, and bars, as collateral for a Gold Loan.
What is the tenure for a Gold Loan?
Gold Loans usually have shorter tenures ranging from 6 months to 3 years, depending on the lender's policies and your loan agreement.
Do I need to provide collateral for a Gold Loan?
Yes, a Gold Loan is a secured loan, meaning you need to pledge your gold as collateral until the loan is repaid.