Need funds to submit your child’s college fees before the due date or for a medical procedure for a family member?
Such crucial times ask for immediate cash. Selling off the house or other assets, or getting a personal loan can be a difficult and expensive deal at such times.
A smart alternative to them is using the gold lying idle in the house or a bank locker, to arrange for immediate funds at a low-interest rate.
In India, using gold to arrange for money is not a new concept. Indians have always seen their gold as a mark of security for the grey days.
According to RBI, the overall loan segment in India grew due to faster growth in the loan against the gold jewellery segment in the country. The outstanding gold loans stood at Rs. 62,221.07 crores in June 2021.
These are top five banks offering gold loans are:
Axis bank gold loan
|13.50% per annum to 16.95% per annum
|Rs. 25,001 to Rs. 25 lakhs
Kotak Mahindra gold loan
|10.00% per annum to 17.00% per annum
|Rs. 20,000 to Rs. 1 crore
HDFC gold loan
|11.00% per annum to 16.00% per annum
|Rs. 10,000 onwards
Bank of Baroda gold loan
|9.00% to 9.15% per annum
|Up to Rs. 25 lakhs
Punjab National Bank gold loan
|7.70% to 8.75% per annum
|Rs. 25,000 to Rs. 10 lakhs
The interest rates may vary for different borrowers. Customers can use the online gold loan calculator to check their eligibility and expected interest rate on a gold loan.
Banks have always been known for the lengthy paperwork and documentation they require to sanction a loan. Some banks charge high foreclosure fees if the borrower wants to pay back the loan early. Additionally, they may charge a high percentage as a processing fee, adding to the loan’s cost for the borrower.
Due to several such reasons, borrowers often look for an alternative to bank loans that meets their urgent cash requirements without wasting time or effort.
Muthoot FinCorp offers gold loans with minimum paperwork and attractive interest rates.
Muthoot FinCorp Gold Loan is available to borrowers under different gold loan schemes that meet the financial needs of customers.
- The processing fee for Muthoot FinCorp Gold Loan starts at only Rs. 20 on certain gold loan schemes.
- The documentation process is simple, and the borrower needs to submit only his ID proof, Address proof, and Income proof.
- Flexible repayment options to minimise the repayment burden on the borrower.
- High Loan to Value with up to 75% loan amount on the pledged gold.
Quick and convenient loan processing.
- Zero foreclosure charges after three months if the customer wants to pay back the loan early.
- Continuous monitoring of the customer’s pledged gold to keep it 100 percent secure.
- Free online gold loan calculator for customers to check the expected interest rates, EMI, and loan tenure.
Process of getting a gold loan
Get a gold loan in a few easy steps:
- Visit the lender’s website and enter your basic details and a few details about the gold you want to give as collateral.
- Determine your gold loan eligibility using the gold loan calculator. The calculator will use the weight and purity of the gold and determine the eligibility based on the current gold prices in the market.
- Get a detailed understanding of the EMI to be paid under different gold loan schemes and the suitable repayment terms.
- Click submit, and a company executive will get in touch with you.
- Visit the nearest branch of the lender and get the gold evaluated. Complete the documentation process, and the lender will sanction the loan soon.
Customers can repay the loan amount and the interest applicable in comfortable monthly instalments to get back their pledged gold. This way, they can meet their financial requirements without having to give away the benefits of the increasing value of their gold ornaments and coins.