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Muthoot Finance Gold Loan

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Muthoot Finance Gold Loan

Muthoot Finance gold loans could be the simplest and safest way to secure funds for your immediate needs at attractive interest rates. With minimal documentation and secure storage Muthoot Finance gold loan is a viable option to get funding quickly. The funds thus secured from a gold loan can be used for wedding, education, business expansion and other similar purposes.

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Introduction to Muthoot Finance Gold Loan

Muthoot Finance offers loan against gold at competitive interest rates. Being one of the major gold loan providers, Muthoot Finance understands the needs of the customers and disburses the loan amount in an hour. The gold pledged is safely locked in the bank locker and you do not have to worry about its safety. The gold rates and all other charges are intimated to you upfront in a transparent manner before sanctioning the loan amount. Hence you do not have to worry about the hidden charges and fees on the gold loan.

Muthoot Finance Gold Loan Key Features

Interest Rate Depends on the loan scheme
EligibilityAll creditworthy individuals
Loan AmountMinimum of INR 1500 and no ceiling on the upper limit
Loan tenureFrom 6 months to 36 months
Processing FeesINR 50 per loan account
Foreclosure ChargesNil

Advantages of Muthoot Finance Gold Loan

Following are some of the advantages that a customer can avail by pledging the gold with Muthoot Finance gold loan.

  • Hassle-free application
  • Minimal documentation
  • Attractive interest rates
  • Quick disbursal within an hour
  • Standard loan amount against the value of the gold
  • Secure storage

What is a gold loan?

Gold is a sign of wealth and prosperity. But when you are in need for money for some unexpected immediate expenses, pledging your gold could be a good option to get it quickly. In a gold loan, gold jewels and ornaments are pledged as collateral to secure a loan for all your needs. Usually, the loan amount sanctioned is a certain percentage of the value of the gold pledged. The banks use gold as the security against potential payment default by the customer.

The interest rates are slightly lower than the personal loans as the lenders have the advantage of the collateral in case of defaults. Unlike other loans, gold loan does not require salary proof or a very good credit score.

Benefits of Gold Loan

A gold loan lends immediate help in times of emergencies as it helps an individual get cash within a day. The loan can be used for any of the following purposes and more:

  • Gold loan can be taken to fund the education of children.
  • It can be useful for expanding business or working capital requirement.
  • To improve the agriculture by buying machineries for irrigation and other needs
  • When a medical emergency strikes, a gold loan can be a saviour.
  • To get urgent fund while going on a trip
  • Gives the sense of using an own asset to finance your needs

What types of gold can be used to secure a gold loan?

You can pledge any type of gold such as gold jewelleries and ornaments. Initially, the purity of the gold is checked by the lender and based on which the loan amount is approved. If customer pledges 15 grams of jewellery out of which only 5 grams are gold and the rest is the component of other metals, the loan amount is decided based on the purity of the 5 grams of gold.

Features of Muthoot Finance Gold Loan

Purpose: Muthoot Finance gold loan offers a convenient way to the customers to meet all types of personal needs such as wedding, education, business expansion etc.

Minimum Loan Amount: The minimum loan amount starts from INR 1500.

Maximum Loan Amount: As it is a secured loan, there is no ceiling on the upper limit on Muthoot Finance gold loan.

Processing Charges: The borrower will have to pay INR 50 per loan amount as processing fee on Muthoot Finance gold loan.

Prepayment Charges: There are no prepayment charges on Muthoot Finance gold loan.

Interest Rate: The interest rate on Muthoot Finance gold loan is fixed depending on the gold loan scheme.

Storage: The gold jewels provided to the bank as collateral is stored safely in the bank’s locker and you can get it back after the entire loan repayment.

Gold Loan Amount Per Gram: The gold loan per gram ranges between INR 1755 to 2145 and it subject to change based on the purity of the gold and market prices.

Eligibility Criteria for Muthoot Finance Gold Loan

  • The borrower must have gold in any form such as jewels, ornaments etc.

Documents Required for Muthoot Finance Gold Loan

The following documents are required while applying for Muthoot Finance gold loan.

  • Application form duly filled by the applicant
  • Photographs of the applicant
  • Proof of Identity: Voter’s ID card/ Passport/ Driving license/ Aadhaar card provided by UIDAI etc.
  • Proof of Address: Voter’s ID card/ Passport/ Driving license/ Aadhaar card provided by UIDAI etc.

Gold Loan Calculator

It is simple and easy to use a gold loan calculator which gives the loan amount you will be getting based on the details provided by you.

You will have to provide the details of tenure, carat of gold and gold weight in grams. The gold loan calculator will compute the information you have provided and produce the loan amount and other details. You can add more than 1 ornaments and check the loan value for your gold.

How to Apply for Muthoot Finance Gold Loan?

You can walk in to the nearest Muthoot Finance branch with your gold, apply for the loan and get the loan amount after the verification process within an hour. If you want to get it from the comfort of your home, you can apply online and executives from the bank will visit your house and after valuation, the loan will be processed and disbursed to your account immediately after approval.

Gold Loan Process

The following steps are involved in a gold loan process.

Step 1: Purity of the gold is checked based on which the loan amount is decided.

Step 2: The market rate of gold per gram is checked and the rate of previous day is taken into consideration.

Step 3: Loan to Value (LTV) is decided at this stage. The maximum LTV value set by the RBI is 75%.

Step 4: Once you have acknowledged the loan amount and terms, the lender processes the application. The processing fees and other charges are deducted from the loan amount.

Step 5: After signing the final agreement, the gold loan amount is disbursed to your account.

How to Pay Your Muthoot Finance Gold Loan EMI?

Your Muthoot Finance gold loan can be repaid in following three ways.

Standing Instruction (SI): If you are an existing account holder with Muthoot Finance, Standing Instruction is the best mode of repayment. Your EMI amount will be debited automatically at the end of the monthly cycle from the Muthoot Finance account you specify.

Electronic Clearing Service (ECS): This mode can be used if you have a non-Muthoot Finance account and would like your EMIs to be debited automatically at the end of the monthly cycle from this account.

Post-Dated Cheques (PDCs): You can submit post-dated EMI cheques from a non-Muthoot Finance account at your nearest Muthoot Finance Loan Centre. A fresh set of PDCs will have to be submitted in a timely manner. Please note Post Dated Cheques will be collected non-ECS locations only.

It is recommended that you opt for either the SI or ECS mode of payment for faster and less prone to error than the use of PDCs.

Muthoot Finance Gold Loan FAQs

1.What is the tenure of Muthoot Finance loan on gold?

The tenure of Muthoot Finance gold loan is determined depending on the repaying capacity of the borrower.

2.What happens if the loan amount is not repaid on due date?

If the loan amount is not repaid on or before the due date, a penal interest will be charged. In case there are continuous defaults, the lender will secure the loan amount by auctioning the gold.

3. Can I prepay the gold loan and are there any charges levied on prepayment?

Yes, you can prepay your gold loan, and there are no prepayment charges on Muthoot Finance gold loan.

4. Is the pledged gold safe with Muthoot Finance?

The bank safely stores your gold in the locker well-maintained and you do not have to worry about the safety.

5. How long does it take to get Muthoot Finance gold loan?

You can get the loan against gold jewellery within an hour with proper documents.

6. What is the quality range accepted by Muthoot Finance for jewellery loan?

Only gold of 18 karat and above are accepted by the bank.

7. Do I require a guarantor to get Muthoot Finance gold loan?

No, you do not require a guarantor to obtain Muthoot Finance gold loan.

About Muthoot Finance

Muthoot Finance Ltd is an Indian financial corporation which is one of the largest gold loan financing companies in the world. In addition to gold loans, the company offers foreign exchange services, money transfers, wealth management services, travel and tourism services and sells gold coins at their branches.

Applying through CreditMantri

You can also apply through CreditMantri to get the best gold loan offers. CreditMantri matches the borrower’s credit and demographic profile to the lender's lending criteria and presents a shortlist of only those lenders willing to lend based the credit profile. You can also get the most recent updated market gold rates and compare cheapest gold loans offered by various lenders.

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