The gold market is estimated to be roughly 28,000 tonnes, with organised gold loan players such as NBFCs and banks owning less than 2,000 tonnes. The rest is still sitting around with folks, which may be a gold loan possibility.
An individual has several alternatives for dealing with a financial crunch. These options include taking out a personal loan or selling financial instruments such as provident funds and mutual funds.
Aside from taking out a personal loan, one can also take out a gold loan via a financial organisation.
Gold loans’ interest rates range from 7.35% to 29%, which is lower than other types of loans.
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Why Choose Muthoot FinCorp Gold Loan?
Taking a gold loan from Muthoot FinCorp has numerous benefits:
- Obtaining a gold loan with Muthoot FinCorp is seamless. The required gold loan is processed in a few minutes after submitting the relevant documents.
- Getting a gold loan with Muthoot FinCorp is quite straightforward, as the process is authorised swiftly at affordable interest rates, with minimal documents.
- For approval, Muthoot FinCorp just requires evidence of name and residence; no proof of income or credit score is necessary.
- Borrowers can acquire a gold loan from Muthoot FinCorp for as little as 11.99% p.a. Interest rate.
- Their vaults safely keep any jewellery that borrowers offer as collateral.
- Depending on the gold loan scheme borrowers select, they can get the maximum potential value for their gold.
- Each gold loan scheme is tailored to the borrower’s specific needs. Every Muthoot FinCorp gold loan candidate enjoys ease of application and repayment flexibility.
Muthoot Gold Loan Interest Rate
Getting a gold loan through Muthoot FinCorp is simple, gold loan eligibility is easy to meet, and the gold loan interest rate is affordable. The desired gold loan is executed within minutes after submitting the relevant documents.
Muthoot gold loan interest rates were designed to provide borrowers with a simple borrowing experience. Interest rates start at 11.99% p.a. and vary depending on the amount borrowed and the gold loan scheme selected.
Borrowers can choose from various gold loan options depending on their needs. Further, they need to keep in mind that they can borrow up to 75% of the value of the gold they are guaranteeing.
| Gold Loan Scheme | Amount of Loan | Rate of Interest | Tenure |
| Muthoot Easy Blue | upto Rs. 1 Lakh | 18% p.a | 9 Months |
| Muthoot Easy Pro | Rs.3 lakh to Rs.499999 | 18% p.a | 9 Months |
| Super Value Gold Loan | Applicable through all ticket sizes | 23% p.a | 9 Months |
| RestartIndia Pradhan Gold loan | Minimum Rs.5 lakh | 11.99% p.a | 6 Months |
| Muthoot Easy Max | Rs.1 lakh to Rs.299999 | 21% p.a | 9 Months |
Source: https://www.muthootfincorp.com/blog/muthoot-fincorp-mera-gold-loan-mera-interest-with-virat-kohli/
Factors Influencing the Muthoot Gold Loan Interest Rate
A few factors that affect the gold loan interest are:
- The quantity borrowed is one of the key variables influencing current gold loan interest rates. If applicants take out a larger loan, the interest rate will be higher, but if they take out a smaller loan, the interest rate will be lower, but the EMIs will be higher.
- Many factors influence the current interest rate on a gold loan, including the borrower’s location, such as metro towns, small villages, etc.
- The current interest rates on a gold loan might be affected by external factors such as inflation and global interest rates. If inflation rises, the RBI will raise interest rates, raising the present interest rate on gold loans. Further, if the world interest rate increases, the interest rate on gold loans will also rise.
Conclusion
One of the most important elements to consider when purchasing a gold loan is the interest rate. If the interest rate on the gold loan is significantly higher, borrowers will have to pay more equated monthly instalments and vice versa.
If borrowers fail to pay their EMIs on time, the lender will sell the gold held as collateral to recoup the loan amount.
As a result, before opting for a gold loan, meticulously consider the interest rate.
Individuals can also use the gold loan EMI calculator to determine their monthly payments on gold loans. This will help them make an informed decision.
Click here to learn more about Muthoot FinCorp’s gold loan, one of the most reputable financial services brands.
