The gold loan also referred to as a loan against gold, is a secured loan that a borrower takes from a lender in lieu of gold ornaments such as gold jewellery. The loan amount sanctioned to you by lenders is generally a certain percentage of the gold's value.
You can repay the gold loan in EMIs. You even have the option to pay the interest amount upfront and repay the principal loan amount at the end of the loan tenure.
If you don't repay the gold loan even by the final repayment date, you lose the gold article. The lender will auction the gold ornaments and recover the dues. There's nothing you can do as the lender lawfully recovers the dues by selling your gold.
In order to apply for a Gold Loan, you must be a farmer, trader, salaried or self-employed professional, or businessman. Between 21 and 60 years of age.