A gold loan is a secured loan where borrowers pledge their gold jewelry or ornaments as collateral to obtain funds from a financial institution. The loan amount is typically a percentage of the gold’s market value, and it can be used for various purposes, such as personal emergencies, business investments, or education expenses.

Gold loans are popular due to their quick processing, minimal documentation, and flexible repayment options. The interest rates on gold loans are generally lower than those of unsecured loans, given the collateralized nature of the loan, reducing the lender’s risk.