Because the lender has collateral, you typically get a lower interest rate than you would on a personal loan or credit card. People who apply gold loan facilities, for instance, sometimes underestimate how quickly interest accumulates when repayment gets delayed. When comparing gold loan interest rates across lenders, don’t stop at the advertised number. A twelve-month tenure on a gold loan means higher monthly payments than a twenty-four-month tenure. Each renewal can carry additional processing fees and potentially a revised interest rate.