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.

Gold loan is sanctioned by accepting the gold ornaments of the customer as pledge. Personal loan is sanctioned on the basis of source of income and repayment capacity of an applicant. A gold loan is a type of secured loan, where individuals borrow money by pledging their gold as collateral. The lender determines the loan amount based on the gold's value. It provides quick access to funds without extensive documentation, offering lower interest rates due to the collateral.