Today the gold loan is considered as the fastest emerging trend for getting a quick financial fix. But to get an easy gold loan approval, it is a must to check your gold loan eligibility. It helps you in finding out how much you must pay each month in the form of EMIs to service your gold loan.
To be eligible for a gold loan, you need to fall within the below-mentioned criteria
Nature of employment: Either a Salaried, Self-Employed Professional, Businessman, Farmer, or Trader.
Age limit: To get a gold loan, your age limit should be in between 21 and 60 years.
Before applying for gold, it is essential to check the value of gold per gram, it should be the current rate of 22 Carat gold in the market on the day you file a gold loan application. Once you get to know about the current price of gold per gram, then you can easily calculate the loan to value ratio.
LTV is the maximum loan amount given to a gold loan applicant based on the underlying value of the gold. The standard maximum LTV which can be availed on gold in India is 75% which is set by the Reserve Bank of India. It is best to look at higher LTV and lower interest rates to get the best tradeoff in availing gold loans.
IndiaLends offers LTV between 75 to 77% of the value of the Gold loan
The gold loan rate per gram calculation is done by multiplying the net weight of gold with the per gram rate in the market and the purity factor of the gold. The net weight itself is calculated as the total weight of jewelry minus the weight of any other element aside from gold in it, i.e., the net weight calculated on a diamond ring is the total weight of the ring minus the weight of the diamond. Once this is calculated, the formula goes so:
Gold Loan Amount = Net Weight x Per Gram Rate x Purity
The thing to remember is, that the decision regarding getting a gold loan at the highest rate per gram is not only limited to the LTV offers nor is it based on the simple question of how gold loan is calculated.
Ideally, to avail the most advantageous Gold Loan offer, apart from LTV, gold loan tenure, an interest rate, pre-closure, or processing fee should also be considered.
So if you take Gold Loan from us, there will be 0% pre-closure charges and processing fees.