Gold Loan

A Gold Loan (also called Loan Against Gold, Sun Chandi Karja, or Swarna Karja) is a secured loan where the borrower pledges gold ornaments, coins, or bullion bars as collateral and the bank or finance company lends a percentage of the appraised gold value. It is one of the fastest, lowest-documentation loans in Nepal, often disbursed the same day (sometimes within a couple of hours), and is popular with housewives, small traders, jewellery-shop owners, and anyone needing quick cash without proving income, since the gold itself secures the loan. The lender weighs and tests the purity of the gold, fixes a loan amount within Nepal Rastra Bank's loan-to-value (LTV) cap, holds the gold in its vault/locker, and the customer reclaims it after full repayment. Most gold loans in Nepal run up to 1 year (as an overdraft or demand loan) and carry lower interest rates than unsecured personal loans because they are fully collateral-backed.