People often use the phrases gold loan and gold exchange as if they mean the same thing. They do not. One is borrowing, the other is converting. Picking the wrong one can cost you interest you did not need to pay, or make you part with gold you wanted to keep. This guide lays out the difference in plain terms and helps you decide which one fits your situation in Nagpur.
The short version. A gold loan keeps your gold but charges you interest. A gold exchange gives up your old gold but charges no interest, and at Londe Jewellers it carries zero deduction on the gold value. For 37 years Londe Jewellers Gold and Diamonds has helped Nagpur families upgrade heirloom and dated gold into new designs without losing value.
Gold loan and gold exchange, the core difference
A gold loan is a secured loan. You hand your gold to a bank or finance company as security, they lend you cash against its value, you pay interest for as long as you hold the loan, and you get your same gold back when you repay in full. Your gold is parked, not gone. The cost is the interest.
A gold exchange is a conversion. You hand your old gold to a jeweller, the jeweller tests and weighs it, and credits its value against a new piece of jewellery. You do not keep the old gold and you do not borrow anything, so there is no interest and nothing to repay. The cost, if any, is the deduction the jeweller takes on the old gold value, which at Londe Jewellers is zero on 22K and 24K gold.
"A loan is for when you need cash and want your gold back. An exchange is for when you want a new design and are done with the old one. Match the tool to the need."
Side by side comparison
| Factor | Gold loan | Gold exchange (Londe) |
|---|---|---|
| What you get | Cash against your gold | New jewellery, value of old gold set off |
| Do you keep your gold | Yes, returned on repayment | No, old gold is converted |
| Interest cost | About 9.5 to 24 percent per annum | None, it is not a loan |
| Deduction on gold value | Not applicable, gold is held not bought | Zero on 22K and 24K at Londe |
| Purity testing | Lender values it for the loan | Live XRF test in front of you |
| Repayment | Yes, principal plus interest | None |
| Best for | Short term cash need, keep heirloom | Upgrading old or dated jewellery |
| Risk | Auction if you default | None, transaction completes at counter |
When a gold loan makes sense
A gold loan is the right tool when you need cash for a short period and you specifically want your own gold back. Common cases in Nagpur include a short term business cash gap, a medical bill, school or college fees due before a salary or harvest comes in, or any situation where the gold is a family heirloom you do not want to part with under any circumstances.
The thing to watch is the interest. At roughly 9.5 to 24 percent per annum across lenders, a gold loan held for a year quietly adds a meaningful sum to the cost of whatever you borrowed for. If you do not actually need to keep that exact gold, and you are only borrowing because you think you must, an exchange or a sale may leave you better off with no interest at all.
When a gold exchange makes sense
An exchange is the right tool when you have old, dated, broken or unworn gold and you want a new design instead. There is no interest, no repayment and nothing parked. At Londe Jewellers the exchange is zero deduction on the gold value, so the full value of your old gold at the day's rate is set off against the new piece, and you fund only the difference, plus making charges and GST on the new jewellery.
This is especially relevant in 2026. With gold prices high, many Nagpur families are choosing to refresh old jewellery into lighter, more wearable designs rather than buy fresh gold. An exchange lets you do exactly that without funding the full new piece in cash. The old gold does the heavy lifting. Read the full mechanics on our gold exchange Nagpur page and the exchange gold from any jeweller guide.
A worked example
Say you have an old 22K necklace weighing 30g that you never wear. At a June 2026 reference 22K rate of about Rs 13,540 per gram, the gold value is roughly Rs 4,06,000.
- Gold loan route: A lender might advance you cash against that necklace and charge interest until you repay. You keep the necklace, but you pay interest, and you still own a piece you never wear.
- Exchange route at Londe: Bring the necklace in. We XRF test and weigh it in front of you, credit the full Rs 4,06,000 at the day's rate with zero deduction, and set it off against a new lightweight design you will actually wear. You pay only the making charges and GST on the new piece, plus any gold weight difference. No interest, no repayment.
The exchange route turns idle gold into a wearable new piece at no interest cost. The loan route makes sense only if you genuinely want that specific necklace back later.
How the Londe gold exchange works
- Bring your old gold to any Londe showroom. Any purity, any jeweller of origin, broken or whole.
- Watch the XRF purity test. We test actual purity with an XRF gun in front of you, no guesswork, no back room.
- See the weight and value on the counter. Weight times the day's rate, zero deduction on 22K and 24K gold value.
- Choose your new design. The old gold value is set off against the new piece total.
- Pay only the difference. Making charges and GST on the new piece, plus any gold weight difference. Everything is itemised on the invoice.
Zero deduction gold exchange at Londe Jewellers Nagpur
Live XRF purity testing at the counter. Full gold value at the day's rate, zero deduction on 22K and 24K. Old gold from any jeweller accepted. No interest, no repayment.
Londe Jewellers Sitabuldi flagship, Modi No 2, Sitabuldi, Nagpur 440012. Open 11 AM to 8:30 PM, near Sitabuldi main market. Also at Gokulpeth (N Bazar Road), Manish Nagar (Beltarodi Road) and Nandanvan (Tiranga Square, opposite Axis Bank).
Visit a Londe showroomFrequently asked questions
What is the difference between a gold loan and a gold exchange?
A gold loan means you pledge gold as security and borrow cash against it, pay interest, and get the same gold back on repayment. A gold exchange means you give old gold to a jeweller and receive new jewellery of equal value, with no interest and no repayment, but you do not keep the old gold. A loan is borrowing, an exchange is converting.
Is a gold loan or a gold exchange better in Nagpur?
Choose a loan if you need short term cash and want to keep your specific gold. Choose an exchange if you want to upgrade old or dated jewellery into a new design, since there is no interest and at Londe there is zero deduction on the gold value. For most families upgrading old jewellery, exchange is cheaper.
Does a gold loan have interest?
Yes. Gold loans in Nagpur from banks and finance companies carry interest, commonly about 9.5 to 24 percent per annum depending on lender and tenure. The interest is the real cost and it grows the longer you hold the loan.
What deduction does Londe take on gold exchange?
Zero deduction on the gold value for 22K and 24K. We XRF test purity in front of you, weigh, and credit full gold value at the day's rate towards new jewellery, with no melting loss fee on family heirloom gold.
Can I exchange gold bought from another jeweller?
Yes. Londe accepts old gold from any jeweller. We XRF test the actual purity in front of you and credit the gold value at the day's rate, regardless of where it was bought.
Will I lose money exchanging old jewellery for new?
Not on the gold value at Londe, since exchange is zero deduction and full day rate. You pay only making charges and GST on the new piece. The old gold value is set off against the new total, so you fund only the difference.