You must know the merits and demerits of taking a gold loan. Below are the advantages of taking a gold loan:
- Available to people with low CIBIL scores
- Quick processing
- Low-interest rate
- Provide gold safety alongside loan
- No foreclosure charges
However, there are a few disadvantages of taking a gold loan:
- Bank usually offers you loans only up to 80% of your gold value.
- In case you fail to repay the loan, the bank can liquidate your gold.