Gold is a substantial investment that serves multiple purposes and is especially helpful in emergencies. With minimum documentation and hassle-free application, taking a gold loan. The upcoming year may bring another financial crisis, but with your gold investments, you can easily take gold loan with Muthoot FinCorp without credit checks and income requirements.
Continue with the blog to know the upcoming trends in the gold rate and understand how they can impact your gold loans.
How Much Amount Can You Get?
The present value of the collateral in the market decides how much amount you can avail yourself of. With Muthoot FinCorp, you can avail of a loan of up to 1 crore to meet your necessity. The gold rate trends can fluctuate, but the borrower of the loan can take up to 75% of the market value of the gold ornament. The gold kept as collateral is stored under the vaults under high surveillance.
You can avail of loans at the lowest gold loan interest rate without much documentation. The borrower can use the calculator to plan a manageable repayment schedule. The repayment tenure is flexible, and Muthoot FinCorp does not charge any processing fee on the loan amount.
Gold Rate Future Trends and Impact on Gold Loan
The future trends of the gold rate seem to increase as the demand in the market increases. The pandemic has recorded the maximum number of gold loan borrowers. The reason behind this is the easy documentation and fast loan processing. The impact of rising or falling in the trends of gold rate in the future has the following effects on the gold loan:
If the gold rate increases, the borrowers can avail of larger amounts as loan top up using our 24X7 Gold Loan From Home service. The gold loan interest rate drops, and the amount one can take on a fixed equity increases.
Factors Affecting Gold Rate
Various factors are responsible for fluctuations in the gold rate. Some noteworthy factors that influence the rate are-
Inflation is the reason behind the steep trajectory rise in the gold rates at both international and national levels. Inflation increases the demand for metal which consequently hikes the gold rates too. Inflation is why investors keep their gold safe to sell it when the right time comes.
2. Global Movement
Any global movement or crisis is responsible for the fluctuations in the gold rate. The increase or decrease in the value of one US dollar also impacts the rate of gold. The change in currency, pandemic or any modifications in the political or ruling party can change the gold rate in the country and at international levels.
3. Interest Rate Trends
Interest rate trends on the services and financial products highly affect the rate of gold in the market. The growth in the interest rate leads to the selling of gold, which leads to a reduction in rates. The downfall in the interest rate consequently leads to an improvement in the gold rates.
4. Government Reserves
Central governments play a vital role in fluctuating the gold rate in international markets. The RBI and the US federal hold both currency and gold reserves. The gold reserved by these federations brings cash flow to the market, but the metal’s availability declines.
5. Gold Market
The golden metal is required to meet several essentials in the country. Gold is needed by the industrial sector as well as Indian households in weddings and ceremonies. The consumer demand for the metal directs to an increment in the gold rate, and with more than a hundred uses of the metal, the rate is expected to rise odds.
Also, Read – Why Is A Gold Loan Better Than A Credit Card Loan
The gold rate in the forthcoming future is expected to increase, and the holders of the yellow metal can take gold loans to achieve future goals. Muthoot FinCorp provides loans that amount up to 75% of your gold market value, as per the chosen scheme, so that you reap the best from your gold investment. You can use the gold loan calculator before you borrow a loan against gold to check your repayment ability and the burden to come across in your pocket. The online calculator helps you find the right interest and EMI on your loan amount. Muthoot FinCorp offers many schemes to choose the best as per your demands.