Gold loans are one option when an individual needs money for the short term and in case of a dire emergency. Instead of keeping gold idle at home or in the locker it will fetch you a loan during your time of need. However, one needs to pay interest and other charges involved.

Gold loans are handy when compared to other loans as three is no need of your salary slip or credit history or CIBIL score. Availing loan on gold is a age old custom seen in Indian history. The gold is pledged against the loan and if you fail to repay the loan amount the loan company may even sell the gold to recover the loan amount.

There are various types of scheme offered by Manappuram Finance, a top gold loan company to meet customer requirements. The schemes fall broadly into three categories:

1) High loan to value: These schemes offer the maximum amount of loan per gram as stipulated by the Reserve Bank of India. At the same time, in keeping with the extra risk, the interest cost to the borrower is higher.

2) Low interest rate: The interest rates are lower but the Loan to Value (LTV) is also comparatively less.

3) Longer loan tenure: Here payment of interest is spread out over a longer period and typically, the LTV is lower.

Here are Operational Gold Loan Schemes

1) Privilege Loan(GL-PL): Tenure is upto 90 days and the interest rate slab ranges from 18% to 24%.

2) Super Xpress Loan(GL-SX): Tenure is upto 90 days and the interest rate slab ranges from 23% to 25%.

3) Xpress Loan(GL-XG):Tenure is upto 180 days and the interest rate slab ranges from 24% to 26%.

4) Value for Money(GL-VM)*: Tenure is upto 270 days and the interest rate slab ranges from 18% to 26%.

5) Super Loan(GL-SG): Tenure is upto 270 days and the interest rate slab ranges from 23% to 26%.

6) Samadhan Gold Loan(GL-SA): Tenure is upto 365 days and the interest rate slab ranges from 22% to 26%.

7) Super Relax Gold Loan(GL-SR): Tenure is upto 365 days and the interest rate slab ranges from 14% to 25%. An amount permitted in this scheme is Rs.75,000/- in Kerala Branches & Rs.50,000/- in outside Kerala Branches. b. For woman customers - Rs. 1 Lakh.

8) GL B1-N: Tenure is upto 365 days and the interest rate slab ranges from 18% to 24%.Minimum loan amount is Rs.5 lakhs.

9) GL B1+N: Tenure is upto 365 days and the interest rate slab ranges from 22% to 24%.

10) GL B2+: Tenure is upto 365 days and the interest rate slab ranges from 16% to 24%.

Before availing one should look for overdue charges, her they charge at 3% per annum after loan tenure. Interest is calculated on monthly by compounding.

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