How Do Lenders Conduct Home Valuation for Gold Loans?

When you apply for a gold loan from home, here is how financial institutions conduct the valuation of the ornaments at your place:

1. Preliminary Assessment: If the loan provider has an online gold valuation facility, you can upload clear images of your gold jewellery from different angles. Experts will then digitally perform an initial purity and cartage assessment to provide a tentative loan amount.
2. Home Visit: For the final valuation, a representative of the loan provider will visit your residence. They will carry the required equipment, such as weighing scales, magnifying glasses, acid testing tools, etc.
3. Ornament Examination: The representative will closely examine the design, stone setting, markings, etc., of each ornament to estimate the purity level. They may also do acid tests if required.
4. Weighing: Each piece of gold will be weighed properly to determine the gross weight and net gold content based on purity level assessed.
5. Valuation: Based on current gold rates, a final valuation of your ornaments will be done, and the maximum permissible loan amount will be calculated.
6. Documentation: The representative will collect Know Your Customer (KYC) documents from you, take scans, and complete all paperwork.
7. Approval: If the lending institution is satisfied with your application and documentation, they will approve the loan, and the proceeds will be credited to your bank account.

Thus, home visits enable detailed due diligence and accurate valuation for gold loan disbursal.