For a loan against gold, you have to options to apply. Either you can apply online or offline. Visiting the branch office of a bank/NBFC with documents and photographs could be tedious, and you can always apply for the loan on the provider’s official website. However, at the time of gold evaluation, you may have to visit the bank branch. In some cases, doorstep service could be available. One of the gold loan providers that add to the convenience and gives maximum value on jewellery is Muthoot Finance. It can offer loan anywhere between Rs. 1,500 and Rs. 1 crore.
The interest rate can vary between 10.50% and 12% per annum. Several factors are considered to calculate the Muthoot gold loan interest rate, such as the loan tenure, amount, percent of value of gold ornaments, etc. The financial institution accepts gold of 18 carat to 24 carat. Gold plated jewellery or fake gold are unacceptable. No guarantor are needed, this is a loan to meet any expense you have, other than that for speculative reasons.
Below given are reasons why taking a Muthoot gold loan will benefit you.
Purpose of the Loan
You can take a loan against gold not only for personal and business purpose, but for agriculture as well. Women customers may even get concessional rates. To support farming activities, agriculturists can get 1 to 2 percent discount on interest rate of gold loan, compared to that for the regular customers. This loan is usually chosen for emergencies or expenses, due to high loan amount and quick disbursal.
Relationship with the Financial Institution
Special interest rates could be offered to existing customers of Muthoot Finance. There could be exemptions granted on charges as fees as well. However, the cost of the loan primarily depends on the type of gold, its weight, purity, loan amount you need, and other factors. However, existing customers may derive better benefits than new customers. If you have had bad relationship with the financial institution in past, it may affect your chances of getting a loan from Muthoot.
Simple Eligibility Criteria
If you are over 18 years of age, then you can apply for gold loan Muthoot. Even if you are not employed at the moment, the loan can be approved. Professionals, salaried, self-employed individuals, everyone can apply for a loan against gold, as long as they have acceptable form of gold asset, documents needed, and meet the age criteria. Women can take gold loan for business and personal purposes, for which, they receive discounted rate of interest.
Flexible Loan Tenure
Some banks charge higher rate of interest for loans of lower tenure and vice-versa. However, Muthoot gold loan comes with tenure of 7 days to 36 months and charges a nominal rate of interest for any length of loan tenure. With flexibility in tenure, you can reduce the interest payout and utilize the funds to the maximum. The loan being inexpensive does not bear down on your pocket and you can close the loan early without paying any fees.
Maximum Loan to Value Ratio
The RBI has fixed the maximum gold loan to value of gold jewellery to 75 percent. However, Muthoot may offer loans at lower LTVs as well. The LTV is calculated on net weight of gold content in the ornament. Interest rate on loans carrying lower LTV will be lower as against loans with greater LTVs. Thus, you can get maximum finance on your gold asset. The asset will be kept in a safe vault of the branch’s premises. The gold will be returned once the loan is successfully closed.
Low Fees and Charges
Muthoot charges low fees for its services. The processing fee for the loan is minimum 0.25% to 1% of the loan amount. There are no prepayment charges applicable. Thus, you can close the loan anytime you want without attracting any hefty penalties. Delaying EMI or payment may however call for additional penalties. Make sure you make timely payments. Missed or delayed gold loan repayment can affect your credit score.
You need to submit only one proof of residence and identity. PAN card and Aadhar card are mandatory. If any other documents are needed, you will be informed about it. Provide recent passport-sized photographs along with the duly filled and signed gold loan application form. Apart from these, you do not have to submit proof of income, employment, income tax, or credit report.
Only the amount of loan you wish to borrow is very high, a credit check will be performed. If you apply for Muthoot gold loan online, you can upload the documents while making the loan application. If applying offline, carry the Xerox and original copy of the documents for submission and verification, at a branch office.
The above-given information gives a deep insight into the features of Muthoot Finance gold loan. Go through these before you apply for the loan with this financial institution.