The present study’s aim is to find out the purpose of borrowing gold loan through primary data which was collected by questionnaire in the backword district of Andhra Pradesh. At present gold loans will be offered from public, private, and co-operative banks, this present study based on the purpose of gold loan, in Andhra Pradesh the backward the district is Vizianagaram in this area to create awareness to householders regarding gold loans and its purpose through my the research study, in this study 400 samples were taken in all areas of this district, The study also identifies the various demographic factors like gender, age, income level, Occupation, and educational background of the borrowers which have an impact in opting for availing gold loan.