If we speak
in a rational way, money attracts money, and accumulation of the same becomes wealth
to an individual. We all purchase gold at some point of time in life, which may
be in the form of bars, biscuits, coins or ornaments etc. as the same is been
considered the most trusted asset to an individual.
Here I will
discuss about what gold loan is, how to get it and why to take it?
What is Gold Loan:
Loan in
terms of money against gold is termed as Gold loan. All you need is to place
your gold to any bank or NBFCs for a pre-specified period and the loan is right
in your pocket. Of course, this loan just like any other loan comes with an
interest cost. Just like in the case of personal loan, Home loan, Term Loan or may also be an overdrawn
loan like Cash Credit account.
Any individual having in possession of gold can pledge it with the authority and get a loan, and the loan amount “Loan to Value Ratio (LTV)” is calculated on the basis of value of gold on that particular day along with its purity.
