There are times when we come across a situation where we urgently and immediately require cash for emergency like medical treatment. Even sometime we need to raise money to meet margin money requirements for housing loan. And sometimes we simply need cash urgently  for any other personal needs.
The immediate choice one thinks of at such time is either availing a personal loan or arranging the funds from relatives or friends. 

While relatives and  friends may or may not be in s position to accommodate your request, the personal loan may take minimum of 3  to 4 days for processing and that too is contrrained by your income, credit history and repayment capacity. Borrowing on your credit card (if the cash withdrawal limit permits) can be the easiest solution but the interest rates applicable on this option are so exorbitant that finally you may end up in a debt trap.

The ideal solution to all these hassles is taking a Gold Loan i.e. Loan against your gold ornaments or jewelry. Taking a loan against your gold jewelry is much cheaper in terms of interest rate than availing a personal loan or borrowing money on your credit card. 

Gold loan gives you the ease and convenience of repayment as compared to any other loan and also avoids those lengthy hassels of formal documentation process. This is also your surer way to get cash unlike in other cases where your loan may be rejected due to other credit liabilities or having a poor credit history.

Lenders like Muthoot Finance and Manappuram Finance lend up to 60% of the realisable value of gold jewelry / ornaments whereas banks can provide up to 90% of the realizable value of the jewelry as well. 

Gold loans typically are given for a tenure of one year and the tenure can be further extended at the prevailing rate of interest at the time of renewal. 

The process for availing gold loan is quite simple.  You can avail the same in bare minimum time. You just need to walk into any office of the lender, which gives gold loan, along with your gold jewelry or simply apply through our website. For documentation you will need to carry your id proof (Driving license, pan card, voters id, passport, etc) and an address proof (ration card, electricity bill, landline telephone bill, etc.)

The lender will evaluate your jewelry and will provide the gold loan based on their valuation, which normally will lower than the value that you estimate. As the rate of interest is linked to your loan to value ratio, the trick to get lower rate of interest is to ensure that your loan does not exceed more than 50% - 60% of the jewelry value. This will ensure lower rate of interest. 

The loan has to be either repaid back in EMI or you can pay only simple interest on the loan amount and close the loan account on expiry of the tenure.. The jewelry will be released on payment of all EMI's or payment of principal amount.

Muthoot Finance and Manapurram Finance are two very active players in loan against gold jewelry. Bank Like HDFC Banks, State Bank of India, Central Bank of India, Indian Overseas Bank also provides these loans.