Gold Loan — Quick Funds Against Your Gold
A gold loan lets you borrow money by pledging your gold jewelry or coins as collateral. It's one of the fastest and cheapest ways to get a loan in India.
How It Works
Pledge gold → get 60-75% of gold value as loan → pay interest monthly/quarterly → repay principal and get gold back. Processing time: 30 minutes to a few hours. Minimal paperwork.
Interest Rates
7-15% per annum (among the lowest for any loan type). Banks: 7-10%. NBFCs (Muthoot, Manappuram): 9-15%. Rate depends on LTV ratio, amount, and tenure.
Gold Loan vs Personal Loan
Gold loan: Lower interest (7-15% vs 11-24%), faster disbursement, no income proof needed. Personal loan: No collateral risk, higher amount possible, unsecured. For short-term needs, gold loan wins.