How does the gold loan work?
In gold loan you pledge your gold ornaments, the lender provides you the liquidity at a fixed rate of interest. Loans are certified after inspection of basic documents and satisfactory evaluation of the gold pledged. The amount is given in the form of cash, demand draft or sometimes even an account transfer. The amount is then disbursed in the form of cash, demand draft or sometimes even an account transfer. The process is quicker than personal loans.

What will be the approx. interest one has to pay?
The interest varies (12%-27%)depending on loan to loan. Check here.