Understanding Gold Loans in India
Understanding Gold Loans in India In India, gold has both emotional and financial significance. People treasure it for its beauty, and they also see it as a safety net against price hikes and economic uncertainty. When an urgent need for cash comes up, a gold loan can offer a fast and reliable method to access funds without having to sell your valuable jewelry. 1. What is a Gold Loan? A gold loan is a secured borrowing option. You give your existing gold jewelry or ornaments to a lender in exchange for cash. Purpose: It helps cover immediate expenses like medical bills, education fees, business needs, or emergencies. Advantage: You keep ownership of the gold; it is returned once you repay the loan and interest. Interest Rate: The rate is usually lower than unsecured loans since the gold acts as collateral. 2. How It Works Valuation of Gold The lender checks your gold for...