{"id":928,"date":"2022-05-02T12:01:23","date_gmt":"2022-05-02T12:01:23","guid":{"rendered":"https:\/\/zaratechs.com\/?p=928"},"modified":"2022-05-02T12:01:23","modified_gmt":"2022-05-02T12:01:23","slug":"top-facts-to-know-about-gold-loans-before-availing","status":"publish","type":"post","link":"https:\/\/zaratechs.com\/top-facts-to-know-about-gold-loans-before-availing\/","title":{"rendered":"Top Facts to Know About Gold Loans Before Availing"},"content":{"rendered":"\n
Almost all Indian households have gold investments, and the majority are in jewellery form. Resultantly, pledging that gold to avail funds is a common borrowing trend in this country. Studying this, the World Gold Council estimates that India\u2019s gold loan market will grow at 15.7% CAGR to reach Rs. 4.617 trillion by the end of March 2022. <\/p>\n\n\n\n
Although the popularity of this credit form is unquestionable, individuals need to remember certain pointers to ensure a smooth repayment. <\/p>\n\n\n\n
Things to know before availing of a gold loan <\/strong><\/p>\n\n\n\n Loan against gold is one of the best borrowing options for short-term financial needs due to their unrestricted end-use, simple eligibility and likes. However, to leverage its unique features, individuals need to consider certain factors mentioned below: <\/p>\n\n\n\n Also known as LTV, the rate per gram offered decides the gold loan corpus. The Reserve Bank of India capped gold loan\u2019s LTV to 75%. It means if one pledges gold articles worth Rs. 5 lakh, lenders can extend up to Rs. 3,75,000. <\/p>\n\n\n\n Note that the gold price fluctuates almost every day and a lender disburses a loan as per the current market valuation. Lenders also decide a loan amount after checking the tenor and repayment capacity of applicants. <\/p>\n\n\n\n