The Essential Guide to Gold Loans
A Gold Loan is a secured loan where you pledge your gold ornaments as collateral to get funds. It's one of the quickest ways to meet urgent financial needs.
How Do Gold Loans Work?
Unlike personal loans that rely on your credit score, gold loans are secured by a physical asset—your gold. This makes them less risky for lenders, which translates to several benefits for you as a borrower.
Key Benefits:
- Quick Processing: Since the loan is secured, verification is minimal, leading to very fast disbursal, sometimes within hours.
- No Credit Score Required: Your credit history is not a primary factor for approval, making it accessible to more people.
- Lower Interest Rates: Compared to unsecured loans like personal loans, gold loans typically have lower interest rates.
Unique Repayment Flexibility
Gold loans offer repayment options that are not available with other loan types. Our calculator supports these unique structures:
1. Interest-Only Payments
You can choose to pay only the interest component periodically (e.g., monthly) and pay the entire principal amount at the end of the loan tenure. This keeps your regular outflow low.
2. Lump Sum Repayment (Bullet Payment)
In this structure, you pay both the principal and the accumulated interest as a single, large payment at the very end of the tenure. No payments are required during the loan period.
Is It Safe?
Reputable lenders keep your gold in secure vaults and the entire process is transparent. Once you repay the loan in full, your gold is returned to you. It's a well-regulated and safe way to unlock the value of your assets without selling them.
Calculate Your Gold Loan EMI
Select "Gold Loan" in our calculator to see how much you can borrow and explore the flexible repayment options for yourself.
Go to the Loan Calculator