A gold loan is a one-time, lump-sum loan you get by pledging jewellery or coins. The lender values your gold, sanctions an amount, and disburses it to your bank account. You repay in fixed monthly instalments over a defined tenure. It feels like any other EMI loan—predictable amount, fixed end date, and a clear path to closing the loan and releasing your gold.

What a gold overdraft is

A gold overdraft turns your pledged gold into a revolving credit line. You receive a sanctioned limit and can draw, repay, and redraw within that limit during the facility’s validity. Interest accrues only on the amount you actually use and only for the days you use it. It works like a credit card backed by gold, but without the card—highly flexible and usage-based.

Interest and total cost

A standard gold

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