Full formBanking & Finance
GLDstands forGold Loan Deposit
Full Form of GLD
What is GLD?
Gold Loan Deposit (GLD) refers to a type of secured loan offered by banks and non-banking financial companies (NBFCs) in India where borrowers pledge their gold jewellery or coins as collateral. In exchange, the lender provides funds – typically up to 75–80% of the gold’s market value – and holds the gold in a secured deposit until the loan is repaid. GLD is widely used across India, especially in rural and semi-urban areas where gold is a traditional household asset. It serves as a quick and accessible credit tool for emergencies, business capital, or personal expenses like education and weddings. The loan tenure is usually short-term (3–12 months), and the interest rates are lower than unsecured personal loans due to the collateral. GLD transactions are recorded under the bank’s deposit book but the gold remains in a vault. The Reserve Bank of India (RBI) regulates the valuation and lending norms to prevent exploitation. For competitive exams like IBPS PO, RBI Grade B, and banking awareness sections, understanding GLD helps candidates analyse credit instruments and risk management in Indian banking.
GLD का फुल फॉर्म
स्वर्ण ऋण जमा
Example
After failing to get a personal loan, Ramesh opted for a GLD at his local bank, pledging his mother’s gold bangles to raise ₹2 lakh for his son’s medical treatment.
GLD — frequently asked questions
What is the full form of GLD?
The full form of GLD is Gold Loan Deposit, a banking term for a loan given against gold jewellery kept as a deposit with the lender.
How is GLD different from a regular gold loan?
GLD specifically refers to the deposit component where gold is kept in a vault as security. In practice, gold loan and GLD are used interchangeably in Indian banks, but GLD emphasizes the deposit aspect of the collateral.
Can I get a GLD without a bank account?
Yes, many NBFCs and banks in India offer gold loans (GLDs) even to non-account holders, but you must provide valid identity and address proof. The loan amount is disbursed in cash or as a demand draft.