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Gold Loan

A gold loan is a secured loan wherein the borrower keeps their gold, ranging from 18K to 24K, with a bank or a financial institution as security and avails capital against it.


  • The gold is safe in the hands of the lenders. So, we do not need to worry about the security of gold. The gold is returned to its owner after the total amount is paid.
  • The gold loan can be taken without worrying about a low credit score. Since gold is used as collateral, there is no need for them to check the history of the creditor.
  • Gold loans tenure is very flexible. It can be from 3 months to a maximum of 48 months. This time gives the borrower enough time to feel secure about putting their jewellery as collateral.
  • The gold loan does not have a very complicated process for procurement. Banks do not need to worry about the borrower running away, and upon failing to do so, they can sell the gold legally.
  • The gold loans do not require the borrower to show their income proof to procure a gold loan. Gold loans only require you to prove your identity. The lenders do not need their income proof as the gold is given as collateral to them.
  • Gold loans have a unique function in which the borrower has the choice of paying the interest simply and can pay the significant amount at the time of mortgage completion.
  • As those are secured loans, banks charge a lower interest fee than unsecured loans such as non-public loans. The interest charges are typically within 13% to 14%, whilst personal mortgage generally starts with an interest fee of 15%. In addition, if you connect any other security as collateral, it reduces the gold mortgage interest charge.