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Loan To Value

    Gold Loan or Personal Loan, people generally availed these types of loan for short-term household requirements. Before approving a loan, the bank or moneylender will first evaluate your gold’s purity and current market’s value. In Gold Loan, a borrower keeps his/her gold as security in the hands of bank or moneylender and get instant funds. At the time you get against gold adornments, you€™re paying a high rate of interest and addition documentation, handling and valuation charges on your owned assets. Further, since individuals just grab against gold in an outrageous crisis, the paying chances back within 12 months, which implies that the interest mounts and the danger of default are additionally sky touching. Take a glimpse at a couple of conceivable situations to check if taking a gold loan is beneficial. If you aren’t familiar with the term Loan To Value, here you can check the definition.

    Important things to know

    €¢ The bank provides loans more than 80% gold’s value after evaluating the gold’s purity.

    €¢ If you have coins and bars with higher purity provide more value than simple gold ornaments. While evaluating the gold’s value and purity, the expert can’t count anys tone and gem as a part of evaluation.

    €¢ The loan interest can vary from 13%€“16% per annum. It is generally repayable in 12€“60 months in equal installments and grasps interest and principal.

    €¢ Any person who is above 18 can apply for a gold loan.

    Loan-To-Value (LTV) criteria
    The Loan To Value (LTV) ratio for gold loans anywhere between 60% and 75% relying on the money-related institution. You can avail gold loan easily with minimal documentation. The bank approves and disburse this loan within few minutes. This is one of the most feasible alternatives of availing loan, especially if we compared to a Personal Loan.