The maximum loan amount depends on factors such as the purity and weight of the gold pledged, with lenders typically offering loans ranging from a few thousand to several lakhs of rupees.
The loan-to-value ratio represents the percentage of the gold’s value that can be borrowed. LTV ratios vary among lenders but typically range from 70% to 90% of the gold’s market value.
Eligibility criteria typically include being a legal adult, possessing valid identification documents, and owning gold jewelry or ornaments that meet the lender’s purity requirements.
Yes, many lenders accept non-hallmarked gold jewelry for gold loans, provided it undergoes purity assessment at the time of loan application.
Commonly required documents include identity proof, address proof, and ownership documents for the pledged gold.
Minimum weight requirements vary among lenders, with some institutions accepting gold jewelry weighing as little as a few grams.
Gold loan repayment tenures typically range from a few months to a few years, depending on the lender’s terms and the borrower’s preferences.
Some lenders may charge prepayment penalties or foreclosure charges for closing the loan before the end of the agreed-upon tenure. It’s essential to clarify these terms with the lender beforehand.
Interest rates for gold loans may be fixed or floating, depending on the lender’s policies. Interest is typically calculated on the outstanding loan amount and charged monthly.
In the event of non-repayment, the lender may auction the pledged gold to recover the outstanding loan amount. It’s crucial to communicate with the lender and explore options to avoid defaulting on the loan.
