Millions of Indians lost their jobs during the Covid-19 pandemic. People were turning to gold loans for urgent financial needs, such as paying their medical bills, fueling urgent requirements, etc. Pandemic or not, using gold as collateral against loans is a long-standing tradition among Indians. Muthoot FinCorp helps such individuals by offering loans against gold with reasonable interest rates, minimum processing fees, fewer documentation requirements, etc. If you are in need of immediate funds, gold loans are undoubtedly one of the best methods to meet financial needs. However, before proceeding, it’s essential you get to know the eligibility requirements which are some things that you should factor in before applying for a gold loan. This post throws light on all these aspects.
Who is Eligible to Receive Loans Against Gold?
Gold loans have flexible eligibility criteria due to the collateral’s value reducing the risk of lending. Therefore, Muthoot FinCorp offers the easiest eligibility requirements for gold loan applicants
The most important requirements for a loan against gold are the following:
Collateral: An individual must have enough gold to borrow the funds required. Be aware that gold-related items eligible for credit comprise gold between 18k to 22k purity.
Age: The gold loan applicant must be above the age of 18.
Citizenship: The applicant should be a resident citizen of India.
These flexible eligibility requirements make gold loans the perfect option for getting quick credit advances without any credit checks. This means that even those with a poor credit history can get these loans if they fulfil the above requirements.
In addition, Muthoot FinCorp requires minimum documentation to disburse gold loans. The short documentation process also allows for speedier loan approval and disbursal and makes these loans suitable for emergencies.
Points to Consider While Seeking a Loan Against Gold
Let us look at the most important points to remember when applying for a loan against gold:
- The purity determines the amount of loan against gold
The loan amount will be determined depending on the purity of the gold. This means that the amount of loan against gold will be higher if the gold purity is higher. To be eligible for a loan, the pledged gold must be between 18k to 24k. The evaluation will exclude the stones, gems, and other metals that the jewellery might contain.
Muthoot FinCorp offers gold loans for up to 36 months, with multiple payment methods such as bullet payments, EMIs, and part payments. Before taking a gold loan, ensure that you know your repayment ability. Missing a payment will incur an additional fee and will increase the total cost of the loan. This is something to keep in mind when deciding the term of your gold loan or the repayment method.
Customers who borrow gold loans have multiple repayment options. Muthoot FinCorp offers the option of paying the principal and interest upfront or you can pay the principal and interest at the end of the term. You also have the option of converting the loan into EMIs or monthly, quarterly or semi-annual part payments.
A gold loan can save you when you are in dire need of money. Muthoot FinCorp offers easy, hassle-free loans across its over 3600 branches all over India. Simply walk to your nearest Muthoot Blue branch and speak to a representative to understand our gold loan schemes and choose the best one as per your requirement. You can even raise an enquiry from our website or call us at 1800 102 1616 and let us take your gold loan application process forward.