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How is the Interest Rate on a Gold Loan Determined?
The gold loan interest rate is driven by several factors such as Loan to Value (LTV) ratio, the purity and the weight of the pledged gold, the market conditions, and the repayment scheme. Since these loans are secured loans, the lenders’ risk is relatively lower. Fortunately, these loans have quicker approvals and minimal documentation. The interest rate of the gold loan is also...
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