What is Gold loan

 

Gold loan (also called loan against gold) is a secured loan taken by the borrower from a lender by pledging their gold articles (within a range of 18-24 carats) as collateral. The loan amount provided is a certain percentage of the gold, typically upto 80%, based on the current market value and quality of gold. What is the benefit of gold loan? Image result for

 

what is gold loan Some of the main benefits of loans against gold are as follows:

 

Quick Processing – Since gold loans have physical gold as collateral, banks and other lending institutions easily provide such loans.

 

For banks, lending against gold is a safer option since they can easily sell the gold in case the borrower defaults