Gold overdraft facilities are emerging as a flexible credit option for individuals in India, allowing them to pledge their gold assets as collateral for a revolving line of credit. With Indian households averaging 100-150 grams of gold, valued at ₹15-20 lakh (approximately $18,000-$24,000), this facility provides a cost-effective way to manage short-term expenses. Unlike traditional gold loans, which provide a lump sum upfront, gold overdrafts allow borrowers to withdraw funds as needed, charging interest only on the amount utilized. Currently, gold loan rates from major banks range from 8.75% to 9.30% per annum, while gold overdraft rates are similar, though they may include higher upfront processing fees. The flexibility of gold overdrafts makes them ideal for fluctuating financial needs, as interest is calculated only on the withdrawn amount. However, borrowers should be cautious of potential fees and the risks of over-borrowing, emphasizing the need for financial discipline.