One morning, when Gregor Samsa woke from troubled dreams, he found himself transformed in his bed into a horrible vermin.
Gold loan, also called a loan against gold is the type of loan in which the customer pledges his/her gold ornaments as collateral with a company that offers gold loans.
The amount of loan that will be sanctioned to you will be a percentage of your gold's value.
When you repay the loan, which can either be in whole or installments, you will get your gold articles back.
Gold loans are usually availed when there is an urgent requirement for money and the money secured can be used for whichever purpose you require.
Unlike other loans such as mortgage loans or business loans, gold loan can be availed by any citizen of India. Even farmers and small vendors can secure a gold loan.
However, the tenure for gold loans is usually shorter than that of other loans.
Being a secured loan, the interest rates on it are usually lesser than those on personal loans. Although, the interest rates differ from lender to lender so as a rule of thumb, you should never take the first offer you get. You should talk to different lenders and then compare and choose.
Gold loans are best when your requirement isn't too large and you need money urgently.