Gold Loan in USA

If you grew up in India, you probably already understand the role gold plays in a family's financial life. It isn't just jewelry. It's something you buy for your daughter's wedding, something your parents passed down, something you keep in the locker "just in case."

Back home, if you need quick money, you don't sell your gold. You borrow against it. It's normal. Walk into any bank, NBFC, or gold loan company pledge a few grams of gold, walk out with cash the same day. Easy.

But when you move to the U.S., things change. You can't walk into Chase or Bank of America and ask for a gold loan in the USA. Most people here don't even know that kind of loan exists. And if you're new to the country or still building your credit, the system can feel like it’s not built for you at all.

Still, gold-backed loans in the U.S. are very real. Quiet, yes. But growing. If you're sitting on gold in the form of coins, bars, or high-purity jewelry, it can still work for you here. You just need to know where to look, what to avoid, and how it compares to what you might be used to in India.

How Gold Loans Work in the U.S.

In the U.S., a gold loan is usually issued by a non-bank precious metals firm. You send your gold to them—often by insured, trackable mail. They appraise it based on purity and weight. If everything checks out, they offer you a loan, typically up to 75% of the gold’s current market value.

The money is wired to your account. You start making monthly interest payments. Once the loan is repaid, they ship your gold back to you.

It sounds simple, and mostly it is. But there are differences that matter. Unlike in India, there are no in-person branches. No walk-in counters. Everything is done remotely. That can be a plus or a minus, depending on how much you value speed and privacy versus face-to-face interaction.

U.S. vs India: What's Different?

Let’s break it down. In India, banks and NBFCs dominate gold lending. Interest rates can range from 7% to 15%, and the process is familiar. You walk in with gold, walk out with cash. Gold loans are one of the oldest forms of credit in the country.

In the U.S., this is niche. Banks generally won’t touch it. So you’re looking at private, specialized lenders. Interest rates here can actually be lower—sometimes as low as 5.5%—9.9% depending on the firm. And the process is more structured. There are fewer surprise fees, more documentation, and the whole system runs closer to how a mortgage or car loan might work—but without the credit check.

Another difference? Storage. In India, your gold is usually locked away in a bank vault, but you don’t hear much about insurance or security. In the U.S., lenders emphasize insured, segregated storage. They want you to know your gold isn’t sitting in a drawer with someone else's.

What Kind of Gold Works?

Most lenders in the U.S. will accept:

• Government-minted gold coins (American Eagles, Canadian Maples, etc.)

• Gold bullion bars

• Some accept high-purity jewelry (usually 22K or 24K)

They typically don’t accept:

• Numismatic or collectible coins

• Jewelry below 18K

• Items without verifiable purity

The more standardized the gold, the easier the appraisal, and the better your loan terms.

Is It Safe?

The idea of mailing your gold to a company you’ve never seen may sound sketchy. And it should. Not everyone offering gold loans is reputable. Some are glorified pawn shops charging 30% interest. Others don’t even specialize in gold.

But there are solid firms operating in this space. Look for ones with clear loan terms, non-commissioned staff, segregated insured storage, and public reviews. Transparency matters. Ask how your gold is stored. Ask about repayment timelines. Ask what happens if you miss a payment.

If you’re not comfortable, walk away. The good lenders won’t pressure you.

What to Expect: Terms, Rates, and Process

Loan-to-value ratio (LTV) is usually around 75%. So if you send in $10,000 worth of gold, you can borrow up to $7,500.

Interest rates vary, but they’re often in the 6% to 9% range. Much lower than credit cards, and often lower than personal loans—especially if you’re still building credit in the U.S.

Loan terms run from 6 to 24 months. Some lenders allow early repayment without penalty. Others don’t. Always check.

The process usually looks like this:

1. Request a quote or fill out a pre-application online

2. Ship your gold via insured carrier or schedule drop-off

3. Gold is weighed, tested, and appraised

4. You get an offer

5. You sign a contract and funds are wired

6. You make monthly interest payments

7. Repay the loan and get your gold back

No credit score is required. No income documentation. The gold is the security.