The Role of LTV in GL Approval Process

Gold loan has been a  Saviour. It has helped so many people in financially difficult times. Gold Loan per gram ranges between ₹ 2,741 to ₹ 3,350. One can easily get a gold loan at a very reasonable interest rate. For applying for a gold loan visit the online website of the preferred bank or you can also visit the nearest bank branch.  

PNB gold loan requires easy application with minimal documentation. The documents required are Aadhar Card, Valid Driving License, Valid Passport, Voter’s ID Card, Salary slip, income tax return documents, employment proof, bank statements, income proof and other documents as demanded by the bank. The bank also offers amazing schemes on gold loans. One can get a gold loan at an affordable interest rate at the bank. PNB bank is recommended for getting a gold loan. For more information one can check the online website or app of the bank. 

Loan to value is used by the lenders to define the ratio of the loan to the market value of the asset. The term is commonly used by the banks and non-banking financing companies(NBFCs). There has been a recent rise on the loan to value on the gold loan. The loan to value of gold loan has increased to 90%. Due to the covid-19 lockdown so many people were affected,  so the government decided to increase the loan to value on gold loans. Now people can avail higher loans against gold. LTV is a very important aspect of loan; it refers to the amount of the loan a borrower can avail against the gold as a collateral. The LTV for gold loans is quite high. Banks and non-banking financing companies can lend more money against the gold as per the new rule. This is one of the biggest advantages of getting a gold loan as the LTV offered is quite high and can help dealing with financial difficulties. 

There are various features of a gold loan. Some of the key features of the gold loan are listed below:- 

1. The processing time of the gold loan is faster in comparison to other secured loans. The application processing is faster. The loan is processed within 72 hours of the application.
   
   
2. Minimal documentation is required for getting a gold loan. Documents such as identity proof, residence proof and age proof are required. Anyone can get a gold loan providing these minimal documents.
   
   
3. Fast approval is one of the key features of the gold loan. In gold loan the banks and non-banking financing companies(NBFCs) provide fast approval. The loan is sanctioned into the account of the borrower after the verification of the documents.
    
4. The LTV value for gold loan is high up to 90%. One of the biggest advantages of the gold loan is that it has quite a high LTV value which makes it ideal in the financial emergencies.
    
5. An applicant does not need to provide salary proof. The only thing important for a gold loan is the purity of the gold. Without salary proof getting a gold loan is possible. 

Conclusion -

Gold loan has various features but one of the most significant features is its high loan to value(LTV). An applicant can get a higher amount of loan by submitting gold as a collateral to the bank or non-banking financing companies(NBFCs). There are also various schemes which can be availed during a gold loan. Gold loans are very advantageous for the people. Many people around the country are investing in gold. Investing in gold is a smart choice as they are very precious assets in today's modern times.

Read More:- The Role of LTV in GL Approval Process