Understanding the Gold Loan Rate
When you need funds in a hurry, a gold loan can be one of the fastest, most accessible, and most reliable financing options. Whether it’s to manage medical expenses, invest in your business, or fund a personal milestone, pledging your gold can help you secure immediate liquidity without selling your precious assets. However, before you avail this facility, it's essential to understand the gold loan rate—a key factor that determines how affordable your loan will be. In this guide, we’ll break down how gold loan interest rates work, what factors influence them, and how to compare options smartly. What Is a Gold Loan? A gold loan is a secured loan where you pledge your gold jewellery or coins to a lender in exchange for funds. The lender evaluates the purity and weight of the gold and disburses a percentage of its value—usually up to 75%—as a loan. Once you repay the loan and interest, your gold is returned in the same condition. Unlike personal or business loans, gold lo...