Which Lender Gives You the Maximum Gold Loan?

Last Updated : April 30, 2020, 2:49 p.m.

There is no doubt about the fact that a gold loan can help an individual to face financial stress in his/her life. A gold loan can be easily availed by pledging your gold ornaments to get any required sum of amount. There are many banks and financial institutions that provide this gold loan facility to the needy customers at an affordable rate of interest.

But there is one question that people often tend to ask — which lender gives the maximum gold loan amount? The loan amount is one thing that tends to change from one lender to another according to various factors. There cannot be a definite answer to this question as the requirements of different individuals cannot be the same.

In this article, we will tell you about how various lenders decide the loan amount and also what are the maximum loan amounts given by them. So if you are someone who is looking to get a gold loan and want to get an answer to this, this post can shed some lights. Keep reading!

How Does a Lender Decide the Gold Loan Amount?

The most important factor that decides your gold loan amount is the overall value of your pledged gold. Any lender will assess the gold submitted by you before giving the loan amount, and based on this evaluation, the gold loan amount will be decided.

Every lender has a fixed Loan to Value (LTV) ratio according to which they give the loan amount. In the case of gold loans, generally, this LTV ratio ranges from 65% to 90%. No lender gives 100% of your gold value as the loan amount. If you are having some trouble understanding this, we can help you understand through an example. Take a look.

For example, a lender assesses your gold value as INR 4 lakh and the LTV ratio of the lender’s gold loan scheme is fixed at a maximum of 75%. Then you can only get the maximum loan amount of INR 3 lakh.

So, to know the answer to which lender gives you the maximum loan amount, it is important to first know about the LTV ratio fixed by the lender. We are providing some of the Loan to Value Ratio of top lenders. Take a look!

Maximum Gold Loan Amount Criteria of Top Lenders

Above you saw the LTV ratio of different lenders, and according to that, the figure can be very low to very high depending on the quantity and value of gold at the prevailing market rates. But lenders do keep a cap on the eventual loan disbursal amount. What’s that? Let’s read further to know the same.

So, these are the maximum loan amounts provided by the top lenders in our country. Based on this and the LTV ratio of lenders, you can make a better decision regarding which lender can give you the maximum gold loan amount to fulfill your needs.