Your jewellery could be your cash cow. If there is any emergency situation rises and you need money urgently, your jewellery can come handy.Till few years ago, it was catered to by unorganised players mainly jewellers who use to mortgage jewellery at higher rate of interest and lower loan to value ratio. There were no such investment avenues like we have today but need was there. So that people could get good value proposition for mortgaging their jewellery. Historically we see that Gold has been perennial favourite of Indians be it any occasion gold was bought and gifted. Owing to the easy liquidity, easier availability, it was considered to be the safest investment haven. If we see the returns in Gold, they have always been able to beat inflation, thus providing hedge against price rise and fall.
Gold loans are provided on the basis of the value of the ornaments. The lenders charge the interest on gold loans on the basis of the ratio of the loan to the value of the gold ornaments which is popularly known as LTV Ratio. Higher the LTV, higher the rate of interest charged by the lender as he is left with lower margin. Now it was time for Sukhi Lalas to move into oblivion
If you are a gold loan aspirant, visit the branch office of the lender along with your gold jewelry. The lender will evaluate your jewellery and will provide the loan based on their valuation rather than the cost mentioned in your purchase bill.