Gold loan is a type of secured loan where you pledge your gold as collateral to avail the loan. The loan amount will be provided based on the current market value and the quality of the gold. Most of the major banks in India provide gold loans. As long as you fit the lending criteria and have a good credit score, any lender would provide a gold loan.
The procedure for applying for a gold loan differs from lender to lender. Ideally, you would have to visit the bank with the gold you want to pledge and along with the documents. The documents that are required for a gold loan varies from lender to lender, however the common list of documents include: passport size photograph, ID proof and address proof.
The lender will then perform a gold purity check which will determine its weight and market value. The loan can be sanctioned up to 80% of the calculated value of the gold. Once the value is evaluated and the documentation is all in place, your loan will be approved.