24K Rs 433,876/tola ▲ 2.07%22K Rs 397,734/tola ▲ 2.07%21K Rs 379,642/tola ▲ 2.07%18K Rs 325,407/tola ▲ 2.07%Updated Today, 2:02 PM PKT · Sarafa market open24K Rs 433,876/tola ▲ 2.07%22K Rs 397,734/tola ▲ 2.07%21K Rs 379,642/tola ▲ 2.07%18K Rs 325,407/tola ▲ 2.07%Updated Today, 2:02 PM PKT · Sarafa market open
GoldRatePK Gold Rate in Pakistan
Financial Education · Pakistan

Gold Loans in Pakistan

How gold-backed loans work in Pakistan: typical loan-to-value ratios, markup costs, and the risks of pledging family gold.

How a gold loan works

You pledge gold jewellery or bars with a bank or licensed lender and receive cash against it — typically 70–85% of the assessed gold value (the loan-to-value ratio). The gold is weighed, tested for purity and sealed in your presence, and returned when you repay the principal plus markup. Several Pakistani banks run dedicated gold-finance products, and licensed NBFCs also lend against gold.

Because the collateral is liquid and the lender bears little risk, gold loans are approved fast and don't depend heavily on your credit history — one reason they are popular with small traders and farming households.

What it costs and what can go wrong

Markup rates are usually lower than unsecured personal loans but still meaningful; compare the annualised rate, valuation fee and insurance charges across lenders. The key risks: if gold prices fall sharply the lender can demand partial repayment (a margin call), and if you default the gold is auctioned — families have lost heirloom sets this way. Never pledge with unlicensed moneylenders, and check today's value first with our gold calculator so you know what your collateral is really worth at the current gold rate.

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Frequently Asked Questions

How much loan can I get against 1 tola of gold?

Typically 70–85% of the gold value. At current rates, 1 tola of 24K gold supports a loan of several hundred thousand rupees — check today's rate and multiply by the lender's loan-to-value ratio.

Do banks accept jewellery or only bars?

Most accept both, but jewellery is valued on gold content only — stones and making charges count for nothing. Purity below 21K reduces the assessed value proportionally.

Is a gold loan better than selling my gold?

If you need short-term cash and expect to repay, a loan lets you keep the gold and any future price gains. If repayment is uncertain, selling avoids markup costs and the risk of losing the gold at auction anyway.

Disclaimer: The gold and silver rates provided on this website are aggregated from various local bullion markets and Sarafa Associations across Pakistan. While we strive to maintain accurate and up-to-date information, these prices are indicative and subject to continuous market fluctuations. They do not include making charges, local taxes, or dealer commissions. We recommend verifying the final price with your local jeweller before making any transaction.