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Product Catalogue


Frequently Asked Questions



GOLD SECURED LOAN

A GOLD SECURED LOAN is the loan service of Loyal Bank based where the bank will lend money to its clients secured by physical gold, physical silver, physical platinum or physical palladium collateral owned by the client and stored by Loyal Bank in its secure depository facility in Switzerland.

Loyal Bank will lend up to 60 % of the market sales value of its customer's precious metal stocks.

This loan can be used to help our clients cover their possible liquidity issues, and it can be used for further increase of client’s investments in physical gold / silver / platinum / palladium at Loyal Gold. *

Loyal Gold and Loyal Bank gives you

  • Sole commitment, no guarantor or co-debtor needed.
  • Simple loan application process.
  • Prompt loan disbursement in a maximum of 2 days after approval
  • Prepayment allowed with no fees or charges.
  • Loans are available to any client, personal or corporate, that already holds physical gold, physical silver, physical platinum or physical palladium collateral which is stored by Loyal Bank in its secure depository in Switzerland.
  • Minimum loan amount USD 30,000 or EUR 30,000 and can be disbursed in USD and in EUR.

Requirements for a Gold Secured Loan

  • A current account is required to be held with Loyal Bank.
  • Physical gold / silver / platinum / palladium purchased from Loyal Bank and stored in the bank’s secure depository in Switzerland with a minimum current market value of USD 50,000 or EUR 50,000.
  • Loans are granted for a maximum of 12 months but are renewable annually for another 12 months provided interest has been paid in full for each prior year.
  • Interest is 8% per year in both EUR and USD and is due monthly.
  • A onetime loan arrangement fee of 1% deducted from the loan disbursement.
  • The amount of interest due has to be available on the clients account held with Loyal Bank and the bank will directly debit the interest due.

Example: Diamond Invest Ltd has a current account with Loyal Bank and has purchased physical gold for USD 50,000. The physical gold is stored in the secure depository in Switzerland.

Diamond Invest would like to apply for Gold Secured Loan with their gold holding as collateral. The available amount of loan for the company is USD 50,000 * 0.60= USD 30,000.

Diamond Investment receives the Gold Secured loan of USD 30,000 with a gold collateral of 50 000 USD on the 01 February 2011. Payment is made into their current account at Loyal Bank.

Diamond investment has to repay the USD 30,000 loan one year later, on the 1st of February 2012 or can ask for lengthening the Gold Secured loan contract for another year in either the full or a reduced amount, if it wishes to partially repay.

The interest is payable monthly which will be 200 USD/month and the interest for the entire year will be 8% i.e. USD 2,400).

The bank debits the interest monthly to the client's account.

*Multiple loans are not provided: once a client received the actual loan and purchased further physical metal from the amount, it is not possible to receive a second Gold Secured Loan on the newly purchased stock.

*Gold Secured loans are only issued subject to the borrower having a current account at Loyal Bank and the physical gold / silver / platinum / palladium being already purchased and stored in the secure facility in Switzerland – no other form of collateral will be considered.

Loyal Gold is the physical precious metals service of Loyal Bank Ltd., an international private bank with a Head Office at Cedar Hill Crest Villa, Kingstown, St. Vincent and the Grenadines, West Indies. Loyal Bank is regulated by the International Financial Services Authority in St. Vincent and the Grenadines.

To learn more, please contact us at myloyalgold@loyalbank.com