Gold loans: What every first-time borrower should keep in mind?

Gold is a highly treasured commodity due to its great value and long history of being ingrained into cultures for thousands of years. A low-interest gold loan is a quick and simple option to satisfy sudden financial needs. Now, information about gold loans has been made accessible, simple, and hassle-free thanks to the development of fintech platforms.

A borrower must have all information about gold loans before taking out this credit line. A borrower should carefully evaluate the possibilities offered by various lenders and choose the one that best meets their requirements. Keep the following in mind before applying for a loan against gold:

Purity and loan-to-value ratio- The value of the gold, which is directly proportionate to both its purity and the loan-to-value ratio, determine the loan's amount. Gold has a maximum loan-to-value (LTV) ratio of 75%. You need to understand the concept of LTV first to get the full information about gold loans. 

Repayment options- One has a choice between standard EMIs and bullet payments to pay back gold loans. Clients can select repayment options according to their financial situation and cash flow.

Loan tenure- A person is advised to determine the loan term based on their anticipated future cash flows. How long it would take them to accumulate sufficient resources to repay the loan can be a consideration.