Gold Loan, Here's a brief overview of gold loans

Gold Loan
A gold loan is a type of secured loan where gold jewelry or ornaments are pledged as collateral to obtain funds from a lender.

Brief overview of Gold Loans (GL):
1. Collateral:
Gold jewelry or ornaments are used as collateral for obtaining a GL. The lender evaluates both the quality and quantity of the gold to ascertain the loan value.

2. Loan Amount:
The loan amount is typically a percentage of the gold’s market value, commonly ranging from 60% to 80% of the gold’s value.

The loan amount varies based on factors such as purity, weight, and prevailing market rates.