Posted on Monday March 25th, 2019

India is the country which is known for its craziness towards the gold. India is also one of the largest importers of gold and in India it is kept in the form of jewelry. Apart from buying the loans, it is seen that people too put this jewelry in the form of investment. When you are going for the Instant Gold loan then you can see that there are some of the factors that are needed to address. If this is not, then you may fall for a bad jewelry mortgage. The factors that needed to check are mentioned below.

1. Compare The Option
When you are going to take it, you must go for various options. The jewelry market keeps on changing so before fixing your eyes on a particular bank for the loan; you need to go through the various offers that various banks are offering for their customers. After that, you can go for the best offers and get it from that only.

2. Check The Creditor’s Credibility
When you are going for the loan, you always search for a secured loan. This means that you go for the collateral in which the creditor needs to have the gold until the amount is fully paid off. But if you fail to give money that you have borrowed, then the lender can sell the gold that you have kept for recovering the amount. So in place of going for the private persons for jewelry loans, you need to take it from nationalized banks.

3. Research About The Repayment Structure
If you have gone for the offer, then the customers need to talks about the repayment structure which comes with the creditors. You need to understand about the advance repayment in terms of helping with the finances in advance as also to avoid the defaults.

4. Check The Quality Of The Ornaments
Before proceeding for it, you need to check the quality of the ornaments. You need to ensure that the ornaments should have got the purity of about 18-22 carat or above. Apart from this, the banks don’t accept the bars as well as they don’t consider any type of precious metals that are present in the gold ornaments.

5. Don’t Do LTV Calculation
LTV is said to be advance to Value Ratio, and the creditors use it to express the ratio of the loan to a net worth of the asset. It is seen that creditors use the ratio for the risk assessment. Higher the LTV and then it involves the risk involved. Creditors needed to calculate the value of ornaments and they based on the fund on finance which amounts to about 74 percent of total value.

So if you are thinking to get it, then you need to check the above things properly. If you are in search of a best jewelry mortgage, then you can go for a Gold Loan with ShubhBank.