May 16 2022
Fluctuating prices of the gold indeed affects your loan
How Do Fluctuations In Gold Prices Affect Your Gold Loan?
Do you know how your gold is evaluated for the gold loan and the money is disbursed? Fluctuating prices of the gold indeed affects your loan. Let us see how it proceeds.
A gold loan is an easy and convenient option for people in need of a loan. Gold loan requires the borrower to pledge their gold jewellery against the loan. The borrower could take back their jewellery which you have pledged as the loan against gold ornaments after the repayment of the loan.
While borrowers consider many factors such as gold loan interest rate, processing fees, tenure , they are mostly unaware of fluctuating gold prices on the gold loan.Let us see how the price of the yellow metal affects your gold loan.
Gold Loan LTV
On the basis of LTV or Loan to Value , the lender approves the loan against the gold. The Reserve Bank has fixed a criterion for gold loans at 75% for banks and NBFC’s. For example , if you pledge a gold worth 200000, you can get the maximount loan amount of 115000.
Loan To Value and Gold Prices
It is a fact that gold rate increases or decreases frequently due to various factors. Whatever happens , the LTV would be determined according to the scenario , in which you are supposed to take gold loans.
Kosamattam Finance is one of the trusted gold loan providers which offers gold loans at attractive rates in a hassle free manner through its services including gold loan at home.To know more about Kosamattam as a gold loan provide in India, vistit :https://www.kosamattam.com/gold-loan/