Gold loans are managed by institutions that keep jewellery safe in a strong vault that are guarded well. Lenders also provide free insurance for the gold that is being pledged to them, which protects it against theft. So in case there is a robbery, you will get back an amount equivalent to the gold’s market value.
You might get a gold loan easily, even if you have a bad credit history. And if you need money immediately, you can pledge your gold and avail your loan quickly. But if you don’t pay your EMIs on time your gold might get seized. And there is also a chance where gold prices are likely to correct drastically during the loan tenure. If this happens, lenders might ask for the payment of the difference.