A gold loan is a secured loan in which a piece of gold jewellery is used as collateral. The loan is worth approximately 75% of the total value of the gold pledged. The loan can be repaid in flexible instalments. Because it is a secured loan, the interest rate on a gold loan is appealing and low. Banks and non-banking financial companies (NBFCs) both offer gold loans.

 A piece of gold, such as jewellery, can be pledged as collateral. The loan’s value will be determined by the purity of the gold and thus by its value. If the ornament contains gems, the value of the gems will be ignored, and only the value of the gold will be considered.

 A gold loan is simple to obtain. You simply need to walk into the lender’s office with your gold. You must show a copy of your PAN or Aadhar card. You must submit two passport-size photographs. After that, you can pledge the gold and receive your loan.

 Your gold is kept very securely by the lenders. The gold is kept in vaults that are watched over by CCTV cameras. The lender may also insure the gold to provide you with additional security. Your gold is returned to you once you have paid all of the EMIs and repaid the loan in full, including interest. Gold loans online or offline can be taken without much issue.

 Anyone can obtain a gold loan over the age of 18 who is an Indian citizen and possesses all of the required documentation.

 Your gold loan will be approved immediately if you bring the gold with you and all of the paperwork. The loan will be disbursed, and the funds will be deposited into your bank account within a few hours. As a result, a gold loan is one of the simplest and most convenient types of loans to obtain.

 The bank is required to verify the related set of documents before sanctioning any loan. These necessities serve as identification, and Aadhar Card, one address proof, voter ID, and password are among them. The most common source is income proof.

 Gold Loan is the most adaptable option. Along with the loan’s secure processing, the payment procedure is also simple. It is possible to repay the entire amount in EMIs. Another option is to refund the principal amount at the end of the tenure.


The repayment period for a gold loan is usually between 3 and 12 months. There is also the option of extending our period for up to two years.


Before applying for a loan, it is critical to have a solid financial foundation. If we fail to pay on time, the bank has full authority to sell the gold to recoup the entire amount.  


If you find yourself in a difficult financial situation, don’t be in a rush to sell your valuable jewellery. Instead, use it as collateral for a gold loan. Repay the loan when it is convenient for you, and you will receive your valuable ornaments back. This is a great way to get quick cash when you need it. Choosing a gold loan over other types of loans has advantages such as low-interest rates and quick processing. Applying for a Gold Loan in Vadodara is not a very difficult thing.