Express 3 Minute Gold Loan

How is the loan amount calculated?

The loan amount is calculated based on the weight of gold. The upper ceilings are prescribed by the RBI.

Will the loan amount be given to me in cash immediately?

Yes, the loan amount will be paid in cash across the counter.

What is the percentage of interest charged and are there any service charges that I have to pay?

The current rate is 24% per annum on diminishing balance. Non-servicing of interest at agreed intervals will attract additional default interest.

	Service charges are:-
	Upto Rs 5000/-	Rs 5/-
	Rs 5001/ to Rs 10000/-	Rs 10/-
	Rs 10001/- to Rs 20000/-	Rs 20/-
	Rs 20001/- to Rs 50000/-	Rs 40/-
	Above Rs 50000/-	Rs 75/-

Is it a flat rate of interest that I have to pay?

The interest is charged on the outstanding balance of the loan

Do I get an account number?

Yes, we will be giving a loyalty number which you can produce each time you avail a loan. Thereby you are exempted from paying the service charge from the second transaction on.

What is the amount received if I pledge 1 gram of gold?

The minimum weight accepted for pledging is 2 grams and the minimum loan amount is Rs 500/-

I am a regular gold loan customer of Muthoot Fincorp Ltd. Can I shift to Smart + gold loan scheme?

Existing customers under regular gold loan scheme can shift to Smart gold loan scheme by transferring the balance payable to Smart + gold loan scheme.

Can I pledge ornaments studded with stones?

Yes, you can. The weight of the stone will be reduced while arriving at the amount of loan.

Is there any ceiling on the maximum amount that I can avail at a time?

There is no ceiling on the maximum amount that can be availed, subject to loan to value ratio.

How is the repayment of loan done? Is there an EMI calculated?

There is no fixed EMI and therefore you can remit any amount at any time to reduce your interest burden.

What are the documents to be submitted by me for availing the loan?

Customer has to bring a valid identity proof and address at the first time.

If I am unable to pay interest on time, what are the additional charges?

If interest is not remitted for 3 months, the interest rate applicable will be 27%. If interest is not remitted for 6 months, the interest rate applicable will be 30%. If interest is not remitted even after 6 months penal interest at the rate of 6% on the interest due will be charged from the 7th month. The additional interest rate will progress by 1% each above 6% in the coming months, if no interest is paid.

Will I be informed if my loan becomes overdue?

Yes, you will be informed of the same by notice on the address given.

Is part release of gold pledged possible?

Yes, part release of gold pledged is possible to the extent of amount paid with upto date interest.

What is the procedure if I misplace the receipt of the gold pledged?

For amount less than Rs 5000/- an indemnity assurance by customer on plain paper is to be submitted at the time of release of gold. For amount higher than Rs 5000/-an indemnity bond on stamp paper of adequate value has to be submitted by customer.

If I am unable to service the interest what is the time limit before which the gold will be auctioned?

Notices to the customers are sent after 3, 6 and 11 months. Gold is auctioned after 15 months after exhausting all means of recovery.

Can a third party remit the outstanding amount for closure of my loan?

Yes, the amount can be remitted by a person other than the borrower. However, in the event of closure of loan, the ornaments will be handed over only if the borrower comes in person to collect the same or else an authorization letter has to be produced