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Gold Loan
A gold loan or a loan against gold is a secured loan that customers can avail from Muthoot Money in lieu of gold ornaments like gold jewellery. It is the easiest way to fulfill your financial needs and proves to be a sensible alternative to availing loans from banking channels.
When it comes to taking a gold loan by Muthoot Money, you are ensured of complete customer satisfaction. With quick loan disbursals and attractive rates of interests, Muthoot Money offers complete ease along with an exemplary experience. Numerous people on the lookout for gold loan providers put their faith in us as we have the largest gold loan portfolio in the country.
A gold loan or a loan against gold is a secured loan that customers can avail from Muthoot Money in lieu of gold ornaments like gold jewellery. It is the easiest way to fulfill your financial needs and proves to be a sensible alternative to availing loans from banking channels.
When it comes to taking a gold loan by Muthoot Money, you are ensured of complete customer satisfaction. With quick loan disbursals and attractive rates of interests, Muthoot Money offers complete ease along with an exemplary experience. Numerous people on the lookout for gold loan providers put their faith in us as we have the largest gold loan portfolio in the country.
We are offering gold loans starting from as low as Rs. 5,000 up to a maximum of Rs. 5 crores. So, when you search for ‘gold loan near me’, we want you to think of us. We provide the best gold loan at the lowest interest rates to help fulfil a diverse variety of needs.
Service Charges relating to Gold Loan
| SL No. | Type of Charges | Corporate | Rate of charges applicable | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 1 | Service charges -Fresh loan- Rate applicable on loan amount(IPL) | Southern Branches | IPL (1%) (For 12 months period only) | ||||||||||
| 2 | Service charges -Fresh loan- Rate applicable per account (ZIL/ZIP) | ALL | ZIL/ZIP-Rs.50/loan | ||||||||||
| 3 | Service charges on fresh loan under MEI scheme | ALL | 0.60% of loan amount | ||||||||||
| 4 | Top-up services charges - Rate applicable on enhnaced amount | All | 2% of enhanced amount (For GL schemes having 1st slab ROI <15% with rebate facility) | ||||||||||
| 5 | Security charges- Fresh loan | Rest of India | 0.15% of loan amount- Minimum Rs.100/- and Maximum Rs.1,000/- | ||||||||||
| 6 | Token charges- (For schemes except given in Sl no.1, 2, 10 & 11 | Southern Branches | Loan up to Rs.1,00,000/- --> Rs.20/- Above Rs.1,00,000/- --> Rs.100/- Where 1st slab interest rate is <13% after rebate, other cases Rs.50/- |
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| 7 | SMS charges | ALL | Rs.5/per quarter at the time of closure or renewal | ||||||||||
| 8 | Notice Charges (Applicable for loans under all schemes) | Southern Branches
Rest of India |
3 ordinary notice Rs.30/each and 4th notice-RegisteredRs.100/-
3 ordinary notice Rs.30/each and 4th notice-RegisteredRs.100/- Auction Notice charges Rs.120/- |
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| 9 | Token lost charges (Applicable for loans under all schemes) | ALL | Rs.25/-(in addition to cost of stamp paper applicable) | ||||||||||
| 10 | Safe Custody Charges | ALL | Rs.5/per gram per month, payable at the time of closure or renewal | ||||||||||
| 11 | Stamp duty levied by State Governments | States:- Karnataka , Andhra and Rajasthan | Actuals where ever applicable | ||||||||||
| 12 | GCS | Southern Branches | 1.Rs.999/- per 6 months (in case the limit is not used over a period of 6 months) 2.If the transaction is through branches then Rs.99/- per transaction |
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| 13 | GCL | Rest of India | 1.Rs.999/- per 6 months (in case the limit is not used over a period of 6 months) 2.Part release charges of Rs.499/- per transaction 3.If the transaction is through branches then Rs.99/- per transaction |
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| 14 | Penal charges | ALL | Rs.0.08 per Rs.1000/- per day over the base rate for the period exceeding the due date. | ||||||||||
| 15 | CAC (Credit Appraisal Charges) – If total exposure > Rs.3 L | Southern Branches |
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| 16 | Door to Door collection charges (Follow up for interest / loan recovery) | Southern Branches | Rs.150/- plus GST per customer for recovery made through customer follow up visit |
Gold Loan Info
What is a Gold Loan?
Gold loan as the name suggests is a financing option that allows you to obtain funds against your gold ornaments. In India, the concept of borrowing money by pledging gold is centuries old. But over the years, the process has become more streamlined, and traditional moneylenders/pawnbrokers have been replaced by authorised lending institutions.
In this type of loan, you can obtain a certain percentage of the total value of your gold ornaments. In return, You need to pay interest that is calculated based on a pre-decided rate. The loan amount you can avail is influenced by various factors, such as the purity of gold in karats and the gold rate today in the market.
This loan can also be repaid in small monthly instalments, and once the complete payment is done (principal amount + interest), you can claim your gold ornaments back. Unlike other popular loans, gold loans do not come with any kind of restriction in terms of fund usage. You can use the obtained funds for any purpose you want.
Muthoot Money has the reputation of being one of the renowned and most trusted gold loan providers in India. If you wish to avail a gold loan, check your gold loan eligibility and reach out to us to start the application process. Or, you can also visit your nearest Muthoot Money branch for more details.
Features of Gold Loan
Every individual has certain phases in life where the need for some financial aid arises. From educational expenses to business expansion, medical emergencies to unexpected travel, the reason could be anything. In such situations, obtaining a gold loan is the easiest and fastest way to arrange the required amount of money. One can pledge his/her gold ornaments to get access to funds and claim them back after repaying the loan.
Here are the key features offered by a gold loan:
- Gold Loan Lower Interest Rates
- Simplified Application Procedure
- Flexible Eligibility Criteria
- Quick Loan Disbursal
- No Restriction on Fund Usage
- Complete Ornament Safety
- Minimal Documentation
- Easy Repayment
Invest In Gold Loan
Why Choose a Gold Loan?
Here are a few reasons why gold loans are a preferred financing option:
- Gold loans are available at highly competitive interest rates, and the application procedure is also very simple.
- Since your pledged gold ornaments act as collateral, these loans do not require complex documentation.
- The loan approval is very quick, which makes gold loans a suitable choice for emergency situations.
- These loans not only allow you to choose a tenure as per your convenience but also come with flexible repayment options as well.
At Muthoot Money, you can avail the best interest rates when you avail a gold loan.
Gold Loan FAQs
Eligibility
Let’s take a close look at the advantages of availing a gold loan from Muthoot Money, the company that offers the best gold loans in the country:
- Fast loan disbursal
- Customer oriented Services
- Minimal documentation
- In-house gold evaluation
- Get minimum loan amount of ₹1500 and no maximum limit
- Pre-payment option-with no penalty
- Strong rooms put in place for providing safe custody of gold ornaments
- Prompt customer service within a shorter response time
Any major Indian citizen is eligible to avail a gold loan from us. All they are required to do is provide the required documents along with the gold ornaments.If you wish to apply for a gold loan with us, visit our nearest branch by searching for ‘Muthoot Money gold loan near me’ on the web.
The only security that is needed from the end of the customer to avail our gold loan is the gold they pledge. There is no requirement for an external/third party guarantor for the same. The loan gets sanctioned against the gold pledged.
There is no minimum tenure of gold loan. However interest is charged for minimum period of 7/15 days depending upon the gold loan scheme chosen.
The maximum tenure is 12 months.
You can pledge any type of gold ornaments/gold jewellery with us. This includes items like rings, necklaces, watches, bracelets, 'Kardahs,' pendants, 'Polki' sets, and more. You can always consult our executives at your nearest Muthoot Money branch for the exhaustive list.
You can repay your loan at any of our branches by cheque, cash, or debit cards (please note that demand drafts and credit cards are not accepted). You can even repay your loan against gold online by using iMuthoot mobile application. To visit our Online Webpay facility, click here.
The loan can be repaid at any Muthoot Money branch, no matter the location. The CBS system of Muthoot Money is implemented in every branch and lets customers repay their loan at any particular branch. But, it is important to note that the final collection of the gold needs to be done from the initial branch where it was pledged.
As for partial repayment, you can pay that along with interest at any of our branches or online on our website.
For instance, if a person has a gold loan of ₹1,00,000.00 for a period of 3 months. The person may come on the 20th day from the loan’s start and pay 20 days interest and an additional ₹10,000.00 (part payment). Then, this additional amount will be fully adjusted from the principal amount and from the 21st day the interest will be charged on ₹90,000.00.
You will receive back the gold which you pledge with Muthoot Money after you repay the loan and the complete amount. If you fail to repay the loan, then Muthoot Money Ltd will reluctantly auction off the same. The borrowers will receive periodical reminders for payment of overdue interest and after the tenure of the loan, a final Notice before the auction.
Another important thing to know about the gold loan offered by us is that the pledged gold is required to be collected from the branch where it was initially pledged as well as stored.
The minimum amount of the gold loan range by Muthoot Money is ₹1500.
At Muthoot Money, we are well aware of the customer’s sentiment attached to the ornaments. Thus, we have put in place specialized safe rooms as well as CCTV cameras for the purpose of round-the-clock surveillance in our every branch. We enter the gold items pledged with Muthoot Money Ltd. into our systems and every submission is locked away in a packaging that is tamper-proof.
So, you can remain worry free and avail a gold loan in an easy process from Muthoot Money Limited.
There is no maximum limit on the Muthoot Money gold loan.
If you wish to apply for a gold loan with us, you can visit any of our branches and talk to a customer care executive. The executive will assist you in filling out a KYC form for Gold Loan and provide you guidance for the process that follows.
This is dependent on the purity of gold in the ornaments and the rate of gold on that date. So, for this, please visit your nearest Muthoot Money Branch. To locate a branch of Muthoot Money near you, simply search ‘Muthoot Money gold loan near me’ on the internet.
You can click here for contact us page or call at 1800 313 1212. You can also voice any concerns that you may have on our Facebook page.
With us, you can rest assured that only excellent services will be offered. Muthoot Money offers the best gold loans at lowest interest rates.
You can pay the loan amount before the completion of your loan tenure by paying the interest, without having to pay any foreclosure charges or prepayment penalties.
Muthoot Money understands the emotional attachment that customers have to their jewellery. As a result, we have installed specialised safe rooms as well as CCTV cameras in each of our branches for round-the-clock surveillance. We enter the gold goods committed with Muthoot Money Ltd. into our systems, and each submission is stored in tamper-proof packaging. Hence, you may relax and get a gold loan from Muthoot Money in a simple method.
No, a co-applicant is not required in order to obtain the Muthoot Money gold loan. In order to proceed with the registration, you must give all of the basic information for the gold loan as specified by the company's terms and conditions. This comprises declarations and commitments made by the borrower and confirmed by him, as well as any additional papers requested by the organisation.
If an individual fails to repay the loan on time, the lender typically initiates a grace period for repaying the loan. If the loan remains outstanding beyond this period, the lender may charge additional penalties or interest. In rare prolonged non-payment cases, the lender can auction the gold pledged to recover the outstanding balance. It is essential to communicate with the lender and discuss options, such as loan restructuring or extension, to avoid default or potential loss of the pledged gold.
The loan-to-value ratio for gold loans varies from lender to lender and depends on prevailing market conditions. It typically ranges from 70% to 90%. The LTV ratio indicates the percentage of the market value of the pledged gold that the lender is willing to loan. Most lenders may adjust this ratio based on specific factors, such as the purity of the gold, risk assessment, and the loan amount. Always check with the lender for their particular LTV policies.
Taking a gold loan directly does not instantly impact your credit score, as it is a secured loan where your gold serves as collateral. The lender does not report repayment behaviour to credit bureaus unless there is a default in the repayment of the loan amount. Paying the loan on time can severely affect your credit score as it reflects negatively on your credit history. Responsible repayment of gold loans can help you improve your credit score by demonstrating good financial management.
Yes. A borrower can renew their gold loan after the initial tenure ends under particular conditions. Renewal typically involves paying off the outstanding principal balance and accruing interest, after which you can extend the loan with the same pledged gold as collateral. Lenders may reassess the gold’s value and adjust terms and conditions based on the prevailing market conditions. It allows you to continue using the same collateral for liquidity without needing to pledge new assets.
Taking a gold loan does not have direct income tax implications since it is a loan against a physical asset, gold. Interest paid on the loan is not eligible for tax deductions under standard income tax protocols. However, if you sell the gold to repay the loan and generate a profit, you may be subject to capital gains tax depending on the holding period and applicable tax laws. Consult with a tax advisor as a necessary step for specific guidance tailored to your situation.
An overdraft gold loan functions like a regular credit line where you can withdraw funds up to a pre-approved amount against your pledged gold. Interest is charged only on the amount you withdraw and for its utilised duration. On the other hand, a regular gold loan provides a lump sum amount based on the value of the pledged gold, with fixed repayment periods and interest calculated on the entire loan amount.
