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.