New Delhi, June 24 -- In a country like India that has a rich cultural heritage; where gold has intrinsic financial value and sentimental value, a gold loan gives you the ability to leverage the value of your jewellery without selling it. The loan can also be a quick and flexible funding option, for a range of needs, such as business, weddings, education, and medical situations.

Let's take a look at the key features of a gold loan in India, and what recent RBI directives a borrower should be aware of.

A gold loan is a type of secured loan by banks or a non-banking financial company, when it is secured against a bar of gold, coins, or jewellery in exchange for the loan. Loan to value is the percentage of the gold's market price used to q...