New Delhi, April 6 -- Gold overdraft is a flexible credit facility offered by banks and non-banking financial companies (NBFCs) where you can pledge your gold assets as collateral in exchange for a revolving line of credit.

Indian households on average hold some 25,000-30,000 tonnes of gold (mostly as jewellery and coins). Divided across 24 crore census households, this works out to about 100-150 grams per household, worth Rs.15-20 lakh at current prices, according to Sachin Sawrikar, Founder and Managing Partner of Artha Bharat Investment.

The value of household gold is nearing $5 trillion - and makes up a sizable 65% of the non-property stock of their wealth, a Kotak Institutional Equities report dated 18 March showed.

Thus, gold ove...