Why Are Muthoot Finance Gold Loan Interest Rates Best in Deal?

A loan against gold is one of the most affordable financing options today. Several banks and NBFCs offer this loan, out of which Muthoot Finance Limited, is one of the major providers. Both the existing customers and new borrowers can avail funds on their gold assets, at a low interest rate. The Muthoot Finance gold loan interest rate starts at 12% per annum. The rate can go up to 26%. The jewel loan rate will vary according to the loan amount, weight and purity of gold, along with the value ratio.

Gold Loan Muthoot Finance

Gold Loan

Loan Details

Interest Rate

Starts at 12:00%

Processing Fee

0.25% to 1% of the loan amount

Loan Tenure

Between 7 days and 36 months

Loan Amount

Rs. 1,500 to Rs. 1 crore

Prepayment Charges

No charges

Repayment Scheme

EMI scheme or Bullet repayment scheme

About Muthoot Loan against Gold Interest Rate

Loans on gold are requested by pledging gold ornaments with the financial institution. Muthoot Finance allows gold loan to be used for personal expenses such as marriage, medical treatment, education, home renovation, big-ticket purchase, etc, as well as for business. The asset which is mortgaged, serves as a security for the loan. Here are some of the features of loan against gold interest rates.

• The financial institution offers rebate to customers on interest payments, if they pay EMI regularly.
• Minimum and maximum loan amount is flexible, and rate of interest is adjusted as per the loan amount and other factors.
• Muthoot does not ask for any foreclosure fees from the borrowers.

How to Get Best Interest Rate for Gold Loan?

Unlike unsecured loans, a person’s credit score does not matter when it comes to deciding a rate of interest for gold loan. Muthoot Finance may take into consideration the type of gold and the gold content, weight, and its purity to finalize a rate of interest. If the applicant has had good relationship with the financial institution in the past, he/she may be able to get a better deal. Being regular about repayment can earn discounts on rates. If the applicant is a woman or an agriculturist (using the loan amount for farming purpose), then discounted interest rate maybe available.

Details of the Gold Loan Scheme by Muthoot

Below are pointers that will help you understand facts about Muthoot jewel loan.

• Purpose of Loan: The loan amount can be utilized for n-number of expenses except for illegal activities.
• Type of Gold: Purity of gold must not be less than 18 carat. It can be up to 24 carat. Gold coins must be up to 50 grams.
• EMI Amount: The lowest EMI calculated at 12 percent rate, per lakh, comes to Rs. 3,321 on tenure of 36 months.
• Collateral: A person needs to keep gold jewellery or bank-purchased coins as collateral for funds.
• Customer Segments: The gold loan by Muthoot is provided to individuals who are above 18 years of age. The borrower can be a businessperson, student, salaried, pensioner, self-employed professional, or a housewife.
• Documents Needed: The borrower has to provide only basic KYC documents such as PAN card and Aadhar card. Income proof such as salary slip, employee code, bank statement, etc is not required.

· Credit Score: The applicant’s credit score is not checked at the time of Muthoot gold loan application, until and unless the loan amount is huge.

Loanbaba is a direct lender of this product. Currently, Small Cash Loan/Instant Personal Loan is available in Mumbai, Pune, Delhi, Gurgaon, Noida, Bangalore, Chennai, Hyderabad, Kolkata, Jaipur, Indore amongst other major cities.