Gold loan comes under the secured loans that are provided against collateral in specific to various types of gold assets like Jewellery or gold coins. You need to deposit your gold with the bank/lender and can avail the loan amount. Once the loan amount is cleared, you can get back the deposited gold ornaments or coins from the lender.
Why to go for Gold Loan:
This loan features a secured loan with low interest rate compared to other loan criteria.
The tenure on gold loan may vary depending on the lender.
The repayment options against the gold loan can be opted according to the borrowers’ choice.
In utmost cases, the lender does not charge any penalty on the gold loans.