How Gold Loans Can Serve as Multi-Purpose Loans?
The Indian economy has come a long way in terms of its perception of loans. People have started opting for loans not just to cover emergency expenses or large ticket purchases but to plan their finances and balance their earnings, expenses, and investments. With various loan options in the market ranging from unsecured personal loans to secured home and automobile loans, there is no shortage of choices for fulfilling your financial needs.
However, in terms of convenience and flexibility, nothing can beat a gold loan. One of the primary reasons is the widespread availability of precious yellow metal in Indian households, which is required to be pledged as collateral for procuring the loan. The high Loan to Value (LTV) ratio for gold loans (up to 75%) is another reason for their growing popularity. Besides, the absence of any end usage restrictions and the availability of online gold loans by Muthoot FinCorp have added to the overall convenience of leveraging your gold deposits for multi-purpose financing.
Leverage Your Gold For Multiple Uses With Muthoot FinCorp’s Gold Loan
Since the RBI and other regulatory authorities impose no restrictions on the utility of gold loans, you can use them for various purposes. Some of the ways you can leverage Muthoot FinCorp’s gold loans online are mentioned below:
As a Business, SME, or Startup Loans
- Gold finance has the potential to cover working capital requirements for an enterprise of any scale. With the high LTV and competitive interest rates, a loan against gold is ideal for raising funds to start a new business or cover day-to-day operational costs. For women and young entrepreneurs from rural areas, gold loans offer an excellent opportunity to transform their ideas and plans into successful business ventures.
As Educational Loans
- There is no dearth of financial institutions that offer educational loans for college admissions in India and abroad. However, one crucial catch is the educational institution’s eligibility for a student loan, as banks usually grant loans for admission to top-tier institutions only. Gold loans offer a viable alternative to student loans with no end-usage restrictions and minimum eligibility criteria due to their secured nature.
As Loan for Medical Emergencies
- Most medical emergencies come unannounced. However, instead of exhausting your hard-earned savings, putting the gold sitting idle in your home to use is a sound financial decision. The straightforward loan application process, swift processing, and quick loan disbursal make instant gold loans a perfect choice for covering a wide range of medical contingencies.
As Loan to Cover Miscellaneous Purposes
- The low gold loan interest rates and the freedom to utilize the loan amount for any purpose make gold finance an automatic choice to cover a wide range of expenses such as home renovation, big-ticket purchases, exotic vacations, and many more.
Understanding Gold Valuation & Gold Loan Interest Rates
The purity of gold pledged as collateral and existing gold rates in the market are the most critical factors for determining the sanctioned amount for gold loans offered by Muthoot FinCorp. At Muthoot FinCorp, you can pledge your 22-carat gold jewellery and ornaments like chains, rings, bracelets, etc.
The gold loan per gram rate plays a crucial role in the valuation of your gold deposits. Some of the factors contributing to gold rate fluctuations include global supply and demand for gold, international economic circumstances, and currency fluctuations.
For gold jewellery, most lenders compute value after subtracting the weight of diamonds, stones, and gems. The higher the weight of gold in the jewellery, the larger the amount that can be disbursed as a loan.
The two factors considered for calculating the Muthoot FinCorp gold loan interest rate are the loan amount requested by the borrower and the region where they are located. You can use the gold loan EMI calculator to determine tenure and interest rate options for a loan against gold offered by Muthoot FinCorp.
Also Read: How Do NBFCs Determine Gold Loan Interest Rates In India?
How Can Anyone Apply For Gold Loan To Fulfill Their Need In India?
Applying for gold loans in India is a hassle-free and quick-free process. You can visit the nearest branch of Muthoot FinCorp with your gold deposits to apply for an instant gold loan. To make it simpler, with Muthoot FinCorp, you don’t even need to step out. You can apply for an online gold loan by providing a few personal and other details. A designated representative will directly contact you to walk you through the remaining process.
Before applying for the loan, use the gold loan calculator to determine your preferred loan tenure and the corresponding interest rate. It will further expedite the loan application approval and processing. After a thorough valuation of your precious gold jewellery and successful verification, the amount will be directly disbursed into your bank account.
Get Gold Loan at Lowest Interest Rate – Apply Now
Gold loans are the most favorable financial instrument to cover various planned and unplanned expenses. You don’t need a strong credit score to apply for a gold loan as you do for personal loans. Neither is there any end-usage restriction as in the case of home loans and other secured loans? Therefore, you can raise funds for any purpose at reasonable lower interest rates with minimum hassle and minimal gold loan documents required. Compared to local pawn shops and lenders, Muthoot FinCorp offers a more transparent process for the valuation of your gold and a more sophisticated and secure storage mechanism for preserving your precious deposits.
So, call us at 1800 102 1616 to get started on your gold loan application right away!