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Fin Shorts| May 21, 2025

What Is The Reappraisal of A Gold Loan?

A reappraisal of a gold loan is a periodic reassessment of the pledged gold’s value to ensure your loan-to-value (LTV) ratio remains accurate.

Key Points:

  • Purpose: Adjusts loan amount or interest based on current gold rate.
  • Process: Lender weighs and tests purity, then applies the latest market price.
  • Frequency: Typically every 3–6 months or upon borrower’s request.

Impact:

  • If gold value rises → you can borrow more or lower your interest.
  • If gold value falls → lender may ask for additional collateral or adjust EMIs.
  • Borrower Action: Monitor gold rates and request reappraisal when favorable.

Suggested Read: Gold Loan - Know about Eligibility, Interest Rates and Tenure

A timely reappraisal safeguards both you and the lender, keeping your gold loan aligned with real-time market conditions.

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