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Muthoot Gold Loan

Loan Amount

Rs 1500 to no maximum limit

Interest Rate

14 % to 24%
 
Muthoot Gold Loan

Loan Amount

Rs 1500 to no maximum limit

Interest Rate

14 % to 24%
Bank
Loan Amount
Interest Rate
Loan Tenure
Processing Fee
Muthoot Gold Loan Muthoot Finance
Rs 1500 to no maximum limit
14 % to 24%
7 days to 36 months (Based on Diff. Schemes)
Applicable, Rates Vary (Depend on Region)

Bank Name

Muthoot Finance

Processing Fee Range

Applicable, Rates Vary (Depend on Region)

Tenure Range

7 days to 36 months (Based on Diff. Schemes)

Foreclosure charges

NIL

Renewal Fees

Interest Rate

14 % to 24%

Time Taken

Carat Requirement

18 ct to 24 ct

Age Required

18 years to 75 years

Document Charges

NA

Muthoot Gold Loan

Indians have a unique fascination with gold. Every family, irrespective of their financial situation, has some quantum of gold or gold jewelry in its possession. Gold loans offer immediate liquidity by mortgaging the gold or jewelry without having the sell the jewelry in a financial emergency. Muthoot Gold loan once started off as a popular loan option over the years.

About Muthoot Gold Loan / Finance

Muthoot Finance’s Gold Loan portfolio is the largest in India as well as around the globe. It is humbling to know that over
2 Lakh people avail our trusted services on a daily basis.

For the past 132 years, the company has been serving the interests of customers as its topmost priority. Our journey through centuries coupled with the fact that we are still a rapidly growing company, highlights the trust and commitment that our customers worldwide have shown in us.

With Muthoot Finance Ltd. Gold Loan services, it takes no more than a few minutes for your gold to generate cash. The simple procedure that we follow allows:

  • Quick loan disbursal
  • Minimum loan amount of Rs 1500 with no maximum limit
  • Pre-payment option-without any penalty
  • Minimal documentation
  • In-house gold evaluation
  • Best customer service with a shorter response time
  • Safe custody for gold ornaments

Check interest rates, eligibility & apply for Muthoot Gold Loan online. We guarantee Lower Interest Rates, Same day disbursal, 100% jewelry security, Minimal Paperwork, Low Processing Fee. Compare Fee structure of Muthoot Gold Loan with other banks here.

Depth study of Muthoot Gold Loan is here.

 

Advantages and disadvantages

Easy to avail: Gold loans are easy to avail, making them ideal for a financial emergency. Currently, most non-banking financial companies offer loan against gold. Almost an instant loan, processing time for a gold loan is quite less and you can get a gold loan approved in less than a couple of hours.

Availability of flexible schemes: Unlike other loans, gold loans offer various flexible schemes. For example, you can choose to pay only the interest component during your loan tenure and pay the borrowed amount at the end of the tenure, making the loan far more useful and pocket-friendly.

Limited repayment woes: In the worst case scenario, if you are not able to repay your gold loan, the bank will take possession of the pledged gold or jewelry to recover its dues. There is no unwanted recovery problem as in case of unsecured loans like personal loans or loan against property which is recovered through the sale of the property.

High-interest rates: Initially, gold loans were cheaper when compared to other loans like personal loans. While personal loans come with an interest rate of 15-26% per annum, gold loans were being offered at 12-16% rate of interest per annum. With falling gold prices and RBI seeking NBFCs to maintain a minimum LTV for the loan, interest rates have increased and are now more or less at par with personal loans thereby offsetting the interest rate advantage.

Low LTV and short tenure: The Reserve Bank of India has barred NBFCs from offering loans with a Loan-To-Value ratio exceeding 75%. So, if you are mortgaging a gold jewelry worth Rs. 1 Lakh, you can at best get a loan of only up to Rs. 75,000. Add to it the loan processing fee and other charges thereby reducing the final amount you can get in hand. Gold loans have a maximum tenure of 1 year. So you should be taking a gold loan only if you are sure that you can repay the amount in the short tenure.