Loan approval is not an issue as long as your credit history supports you and your CIBIL score is high enough. If your CIBIL score is low or you do not have any credit history, a financing company may hesitate to propose a loan. If it offers you a loan, it may carry a high-interest rate and low LTV (Loan-to-value) ratio. In such cases, households can rely on their gold jewellery or coins.
What is a Gold Loan?
A gold loan is a secured loan that you can get against your gold ornaments or coins as pledged articles. Depending on the gold loan company, they accept gold items with 18-24 karats fineness. The loan disbursed is at a certain percentage of the market value of the pledged gold, which can go as high as 75%. The higher the gold quality, the higher the LTV.
Your gold loan EMIs get affected by the gold loan scheme you select, gold purity, loan amount, and repayment term you choose.
Here is the list of Top 5 gold loan companies in India
Individuals look for the best gold loan companies for easy processing and quick disbursals. Here are five companies that you can consider for your gold loan:
1. Muthoot FinCorp
|@ 6.90% per annum or 0.57 paisa per month (scheme as on 5th March, 2022)
|up to 1 Crore
2. Federal Bank
|@ 8.5% p.a. onwards
|Rs. 1,000 to Rs. 1.5 Cr
|6 Months minimum
3. Punjab National Bank
|@ 7.95% to 9.00%
|Rs.20,000 to Rs. 10 lakhs
|12 to 18 Months
4. ICICI Bank
|@ 10% to 19.73%
|Rs.50,000 to Rs 1 crore
|6 months or 12 months
5. Axis Bank
|@ 12.50% to 17.50%
|25,000 upto Rs. 25,00,000
|3 – 36 Months
Let us talk about the top gold loan company on the list – Muthoot FinCorp. Here are the details and features of Muthoot Gold Loan that make it the preference of individuals facing financial crunch:
High Loan Amount
The company helps you meet your sudden financial obligations with an easy and high gold loan. It can provide you with a loan of up to Rs. 1 crore can be used for numerous purposes as there is no restriction to use the loan disbursal.
Disbursal within 10 minutes
Muthoot Gold Loan can disburse your funds against a gold loan within ten minutes*. It follows an online loan application process, and after successful application submission and gold evaluation, your funds will be transferred to your account directly.
Affordable Interest Rates
Gold loans are secured loans; therefore, you can get loan credit comparatively at a lower interest rate. The interest rate depends on the fineness of the gold you pledge. Muthoot Gold Loan is available at the lowest interest rate of 6.90% p.a., scheme as on 5th March, 2022
Minimal Documentation; No Income Proof
Before making a gold loan application, you should check your eligibility for gold loans. The lender requires primary KYC documents to approve your loan against gold. You need not provide your income proof.
Many lending institutions charge zero or a minimal loan prepayment fee. Look at the charges levied by the lender before proposing the loan application.
No Issue of Low Credit Score or No Credit History
You need not worry about the credit score as it is not the base for approval or rejection of a gold loan application. Since you are collateralising your gold, lenders do not worry about loan repayment if a borrower defaults.
Flexible Loan Repayment with ‘Pay Interest Only’ Option
It is a unique feature of gold loans that allows you to pay only the interest on the loan during the tenor. You are allowed to repay the principal at the end of the loan tenure.
Cashback Offers on Gold Loan
You can enjoy cashback offers from the lender if you repay your EMIs regularly and timely.
With Muthoot FinCorp, you can choose from various gold loan schemes as per your financial needs. You can top-up the loan if needed with specific gold loan schemes.
A person aged between 21-65 years can apply for such an easy loan against gold.
Easy Procedure of Availing Gold Loan
You can submit a gold loan application by following these steps:
You can refer to the official website or download the lender’s mobile application. Enter the borrower’s basic information and details about the gold to be collateralised.
It is recommended to use the gold loan calculator to check your gold loan eligibility and calculate EMIs under different gold loan schemes for varied loan repayment tenures.
After finding a relevant gold loan scheme that fits your requirements, you can submit the details. Soon, an executive of the lender will connect with you.
Visit the nearest branch of the gold loan company and complete the quick gold evaluation process to get a direct transfer of loan credit in your bank account.
Pick your KYC documents and proceed with the loan application digitally or personally to quickly access the required funds. Find the best gold loan scheme with Muthoot FinCorp available at the lowest interest rates.