Four Gold Loan Eligibilities That Serve As An Advantage

In the case of a gold loan, the unique thing is the low rate of interest. On the other side, all the other types of loans have a high rate of interest which acts as a matter of burden in most cases. There is a reason behind the low rate of interest also. There is the availability of the gold loan calculator, which gives better estimation when taking the decision to avail a loan. In most of the cases of the other types of loans, the rate of interest is low due to the dependents of many factors like that of competition among them Financial institutions and gold rate movements within the domestic territory of the country as well as the movement of the price of the gold in the international market.

Age Limits

First and foremost, according to the eligibility criteria for availing a gold loan, most of the banks, nbfc and The Financial institutions have separate legal formalities as per their suitability and the choices according to their business styles and patterns. On an average basis, there has been an age limit that generally ranges between the age of 18 years to 70 years. The age criteria have been made like that because at the younger age of less than 18 a person in the teenage years will be in the studies of the colleges or might be searching for any kind of job.

 Therefore, there is no stability or the independence of the financial situation at the very tender age, due to which the age has been kept with the upper limit of 18 years. If we talk about the upper limit of the age criteria, some patterns and factors have been considered. Near about 70 years of age has been kept as the upper limit. After the age of such an experience, there is no more availability of financial dependency as the age for most of the jobs gets over, and the life of the retirement starts over here. The life of financial independence also reduces or gets depleted along with the fasting days and Times.

Loan to value ratio

There has been the loan to value ratio implementation, which means how much of the money in the form of loan you will be getting as per the total value of the gold availing party. PNB gold loan offers a lower LTV ratio for the customers to benefit them. Previously the loan to value ratio went to less, but as time passed by and the different forms of loans have been implemented for the betterment of the customer. The loan to value ratio is lower than the loan amount that a customer wants to avail might not be possible if the percentage is unfavourable.

 Nowadays, the loan to value ratio has increased 75% to 90%, and even that of a hundred per cent is also available. There has been a range of between 75 - 100 % of the loan to value ratio in most banks as there is cutthroat competition among the institutions. Not a single company wants to give up their customer due to competition in the market.

Purity pattern of the gold

There has been a pattern of maintaining a purity limit so that the gold becomes acceptable for providing a loan. The purity limit starts from 18 carats and should be below the maximum limit of 24 carats. Anything above or below this limit is not treated as extractable gold for providing a loan. So one thing should be kept in mind after getting gold from other people as a helping hand during that particular time should be examined and evaluated from the goods made that should have a purity limit of between 18 to 24 carats.

Less Time Consuming

Gold loan is also preferred because of its less time-consuming documentation process. It is decided by only proof of address, proof of Identity, passport size photograph and a gold ownership document.

Also Read:- Why makes Gold an important asset in Gold Loan?