Core Insights - Gold loans provide a convenient solution for various financial needs, including education, business expansion, personal or medical costs, and home renovations, with minimal paperwork and quick access to cash [2][11] How Gold Loans Work - Gold loans involve pledging gold jewelry in exchange for funds, with the loan amount determined by the purity and weight of the jewelry [3][11] - Interest rates on gold loans vary based on the lender, borrower's profile, loan amount, tenure, and repayment option [3][11] Interest Rates - As of October 2025, interest rates for gold loans from various banks and financial institutions are as follows: - State Bank of India: 10.00% - Union Bank of India: 9.65% - Punjab National Bank: 8.35% - HDFC Bank: 9.30% - Muthoot Finance: 22.00% [4] Eligible Items for Pledge - Only specific gold items are accepted for loans, typically gold ornaments with a purity between 18 and 22 karats, and bank-minted coins of 24 karats weighing up to 50 grams [6][11] - Items such as hair pins, cufflinks, gold watches, and imitation jewelry are generally not accepted [6][11] Loan Amount Determination - The loan amount is based on the purity of gold (measured in karats) and net weight, with loans not offered against primary gold like 24-carat bars [9][11] Repayment Options - Various repayment options are available, including: - Paying interest as EMI and principal later - Making partial payments - Bullet repayment - Regular EMI option - Partial prepayment - Prepaying interest upfront [10][11] Market Considerations - Borrowers are advised to check the current market value of their gold and consider lenders offering low interest rates and flexible repayment options [9][11]

Core Insights - A gold loan is a financial product where individuals can borrow money against their gold jewelry, with the amount determined by the purity and weight of the gold [1][5] Interest Rates - As of October 2025, interest rates for gold loans vary across different banks and financial institutions in India, with public sector banks offering rates from 8.35% to 10.50%, while private sector banks range from 9.00% to 10.50% [1] Acceptable Gold Items - Only gold ornaments with a purity of 18 to 22 karats and bank-minted coins (24 karats) up to 50 grams per customer are acceptable for gold loans [2][5] - Items such as gold-plated jewelry, imitation jewelry, and gold bars are not accepted by reputable lenders [4][5] Loan Amount Determination - The loan amount is based on the purity of gold (measured in karats) and net weight, with loans not offered against primary gold (24-carat gold bars and biscuits) [5][4] Repayment Options - Various repayment options are available, including EMI-based repayment, bullet repayment for 3, 6, and 12 months, and an overdraft facility [6]