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 a 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 a rebate to customers on interest payments, if they pay EMI regularly.
- Minimum and the 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 a 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 relations 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 a farming purpose), then a discounted interest rate may be available.
Details of the Gold Loan Scheme by Muthoot
Below are the 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 carats. It can be up to 24 carats. Gold coins must be up to 50 grams.
- EMI Amount: The lowest EMI calculated at a 12 percent rate, per lakh, comes to Rs. 3,321 on the tenure of 36 months.
- Collateral: A person needs to keep gold jewelry 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.
How to Compare Muthoot Gold Loan Interest Rates?
One way to compare different interest rates is to directly drop a relevant query on the financial institution’s official website. The applicant can even reach customer care team by communicating via email or call. To get a better rate of interest, one must understand the purpose for which loan is being taken. For instance, a farmer wishes to take a loan against gold Muthoot for farming activity but takes the loan without citing the purpose. In such a case, the person may not get any discounted interest rate but may get so only when it is proven that the loan amount will be used for agricultural purpose.
Muthoot Gold Loan Interest Rate Calculator
Below given are factors which influence the interest rate of gold loan Muthoot Finance.
- Loan Tenure: Some banks may demand a higher rate of interest for loans on gold on a lower tenure than higher. But, the applicant can look for a bargain on the basis on loan amount and gold purity/weight.
- Loan Amount: Usually, banks offer a gold loan per gram of the gold content. This may differ in a loan to value ratio and purity of gold. Muthoot may charge lower rates for a higher amount. Maximum loan amount one can get is Rs. 1 crore.
- Loan to Value Ratio: The RBI has set the maximum loan to value ratio for gold jewelry at 75 percent. Muthoot may offer lower LTV for a gold asset, and up to 75 percent only. The loan to value ratio is based on the net weight of gold in the ornament.
The above-given are details of gold loan interest rate and scheme by Muthoot Finance Limited. If anyone wishes to apply for the said loan, he/she must go through the mentioned pointers beforehand.