The gold loan amount that you can get from your lender is determined by the value of gold you have pledged as collateral. The values and the purity of the gold pledged will be checked before your lender takes possession of the gold. It will also depend on your creditworthiness as your lender would know whether you will be able to repay your loan within the given tenure period along with the interest rates charged.
Taking a gold loan is a good option if you are looking for instant cash. Approval of this loan doesn’t depend on credit history or your income. Gold loan interest rates are cheaper as the lender has security, in case the borrower defaults on his/her loan. In the case of personal loans, the interest rates are higher as the borrower would not have to pledge any collateral to avail the loan.