Muthoot Finance Gold Loan Interest Rate | Muthoot Finance Gold Loan@Home

Indians have long used gold as a valuable asset for financial security, but parting with gold jewellery for cash can be difficult. Gold loans provide a solution by allowing individuals to leverage their unused gold jewellery for quick and easy funding for a variety of needs.

Muthoot Finance gold loans provide a hassle-free alternative to traditional loans from banks and other financial institutions. With minimal documentation requirements, our customers can receive quick disbursals for their financial needs. At Muthoot Finance, our gold loan schemes offer some of the best interest rates in the market, making it a compelling choice for those seeking short-term funding solutions. Our gold loans start from Rs 1500 up to Rs 5 Crores.

Interest Rates on Different Gold Loan Schemes

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What is Gold Loan Interest Rate?

It is important to note that a gold loan comprises two components: the principal and the interest. Thus, when availing of a gold loan, it is crucial to opt for a lender that offers the lowest interest rate, as paying surplus money to service the gold loan interest can be a burden. At Muthoot Finance, we offer a wide portfolio of gold loans with different interest rates, allowing customers to choose the most suitable option for their needs.

Our gold loans offer convenience and some of the lowest interest rates in the market. Compared to other financial institutions' gold loan interest rates, we stand out as offering the most attractive rates. So, if you're looking for a reliable and cost-effective way to meet your financial needs, consider a gold loan from Muthoot Finance at the best interest rates.

At Muthoot Finance, we offer a range of gold loan schemes with different interest rates to suit your individual requirements. You can explore our various options and compare the applicable interest rates to find the best fit for you. For further information on our gold loan schemes and current interest rates, please visit our website or the nearest branch. Moreover, we offer attractive rebates on schemes and repayments, making our gold loan options even more appealing. For instance, customers can avail of rebates on monthly and quarterly interest payments, reducing the overall cost of the loan. Our aim is to provide flexible and affordable gold loan options to help customers meet their short-term financial needs.

Factors determining interest rates on gold loans

Acquiring a gold loan entails careful consideration of the interest rate. At Muthoot Finance, we prioritize offering our clients competitive interest rates to aid them in managing their finances effectively. Nevertheless, several factors influence the interest rate of a gold loan.

The purity of gold is a significant determinant that affects the interest rate. Gold purity is measured in carats, and a higher carat indicates higher purity. At Muthoot Finance, we extend gold loans against ornaments of 22 carats to 24 carats purity.

The loan amount is another significant influencer of the interest rate. At Muthoot Finance, we offer competitive interest rates that vary based on the loan amount. Muthoot Finance offers loans from as low as Rs 1500 to Rs 5 Crores.

The loan-to-value (LTV) ratio is also a critical determinant that affects the interest rate of a gold loan. The LTV ratio represents the maximum percentage of the value of gold that can be sanctioned as a loan. Muthoot Finance offers gold loans with an LTV ratio of up to 75%, depending on the gold's purity.

Lastly, the repayment tenure of the gold loan also impacts the interest rate. A shorter repayment tenure may lead to a lower interest rate, while a longer tenure may result in a higher interest rate. At Muthoot Finance, we provide flexible repayment options that enable you to choose a tenure that aligns with your financial needs.

At Muthoot Finance, we prioritize providing our customers with the best interest rates, transparent loan services, and flexible repayment options to make the gold loan process hassle-free and convenient.

At Muthoot Finance, we make getting a gold loan a hassle-free experience. Our simple documentation process only requires basic KYC documents, and there's no need to submit income proof or CIBIL score reports.

Calculation of Muthoot Finance Gold Loan Interest Rates

Gold is a highly valued asset that can be easily bought and sold, making it a popular investment avenue among Indians. However, there may be situations where you require quick funds for emergencies or for special occasions like weddings, vacations, or higher education. In such cases, selling your gold may not be necessary. Instead, you can use your gold as collateral and obtain a gold loan to meet your immediate financial needs. Once the loan is repaid, along with the applicable interest, the lender returns the gold. As a secured loan, gold loans generally have low interest rates.

Muthoot Finance, the No.1 Most Trusted Financial Services Brand in India for 6 years since 2016 according to the Power of Trust Brand Trust Report, offers a wide range of gold loan schemes to meet diverse customer needs. Availing a gold loan from Muthoot Finance comes with several benefits, including minimal documentation, low-interest rates, and fast disbursals.

To obtain a loan against your gold jewelry from Muthoot Finance, you first need to determine your financial requirements. The next step is to determine your eligibility for a gold loan.

Muthoot Finance's Gold Loan Calculator, available online and on our iMuthoot app, is a fast and easy way to calculate your Gold loan interest rate. Simply enter details such as your name, email ID, contact number, state, pin code, type of gold articles, the amount required, and the approximate weight of your gold. Our online calculator will provide you with an approximate value of your gold loan eligibility. However, it's important to note that the final gold loan eligibility value is determined only after a thorough in-house evaluation of the gold by Muthoot Finance's experienced team. The purity and rate of gold on a particular day are also taken into account to calculate eligibility, in addition to the weight of the gold.

Once the gold loan eligibility and eligibility per gram have been calculated, an amortization schedule is prepared. This schedule provides the monthly payments that need to be serviced, which is a combination of the principal amount and the applicable rate of interest. Muthoot Finance's online Gold Loan calculator provides an estimated amount of gold loan, but the final value is calculated by our team at the branch.

Documents Required To Avail Gold Loans:

At Muthoot Finance, we make getting a gold loan a hassle-free experience. Our simple documentation process only requires basic KYC documents, and there's no need to submit income proof or CIBIL score reports.

Here are the necessary documents for a Muthoot Finance gold loan:-

Loan Application

Accurately filled out with details about the reason and need for the loan.

Terms and Conditions Letter

Declarations, undertakings, acknowledgements, and any other specified documents.

Proof of Identity

Any government-issued identity card containing the customer's photograph.

Proof of Address

Any government-issued document containing the customer's address.

Please note UID (Aadhaar Card) is only accepted if it shows the local address as combined (ID + Address Document). In the case where a combined Photo ID cum local address proof is not available, one set of two documents separately (one with photo and the other with Local Address Proof) can be accepted from the list provided below.

Document with a photo but without an address

  • A)PAN Card + ID card issued by an employer

Document with address proof but without photo ID

  • A)Telephone / Electricity Bill (latest)
  • B)Ration Card
  • C)Bank Passbook / Statement of A/c with the seal and signature of the Bank Official
  • D)Letter of identification issued by a competent authority (Gazetted Officer /Village Officer / Ward Member, etc.) With seal and signature of the issuing Authority preferably containing the signature of the beneficiary

If the identity proof contains the local address, then no separate proof of address is required.

Irrespective of whether ID proof with a photo is available or not, the photo of the person should compulsorily be taken using the Web Camera at the Branch and Stored in the Computer. The ornaments pledged should also be photographed and saved in the system. In all cases, the telephone numbers (especially mobile numbers) of the person should also be obtained.

Repayment Options for Gold Loans

Gold loan repayment is a crucial process and here are four ways to repay your gold loan:

Gold Loan FAQ's

How is the interest rate calculated for gold loans?

Interest rates on gold loans vary depending on the lender. Financial Institutions rates are usually variable rates of interest that are directly linked to changes in the RBI’s repo rate. Then, lenders determine the interest rate on gold loan schemes using the marginal cost of funds based lending rate (MCLR).

How to get gold loans at competitive interest rates?

You can get competitive interest rates on gold loans from Muthoot Finance, along with a doorstep gold evaluation. In all the doorstep gold loan schemes at Muthoot Finance, you will get maximum loan value, quick loan disbursal after verification, gold storage in vaults, 24*7 assistance and a lot more in the comfort of your homes.

How does the repo rate affect the Gold Loan@Home interest rates of gold loans?

A borrower’s gold loan and EMI is dependent on the repo rate. When the RBI changes its repo rate, the gold loan interest rates will also change. A rise in the repo rate will lead to a hike in gold loan EMIs as financial institutions will increase their interest rate. And if the Reserve Bank of India decides to cut the repo rate, the lending rate will also have to be reduced.

Can I only pay interest on Gold Loan@Home gold loan?

We offer our customers multiple payment options to pay off the loan amount. However, Muthoot Finance does provide a Monthly Interest Payment Option where customers can pay the monthly interest amount and the principal amount at the end of the tenure. Apart from that, customers also have the option to pay the interest upfront or after paying the principal loan amount.

Do Gold loans charge interest monthly?

Yes, Interest is compounded monthly at the applicable rate for each slab. Also, the interest rate of the gold loan depends upon the type of loan scheme availed and its tenure.

Does Gold loan interest change?

Interest is applicable to the amount you choose against the Gold Loan. The interest rate is determined after the evaluation of the gold and the payments need to be made.

Do Gold loans have a limit?

The starting range of our gold loan is ₹ 1500 and there is no maximum limit set, giving customers the ease of availing the loan according to their needs.

Can I get a gold loan at a competitive rate of interest despite having a low credit/CIBIL score?

Yes, you can. Since gold is kept as a collateral you don’t need a healthy cibil score to avail gold loan at competitive interest rate.

What is the penalty/charge for late payment of interest?

If the borrower fails to repay the loan, including interest and other charges, by the due date or within the grace period allowed, the Company will charge a penal interest rate, which will be communicated in advance. This is in addition to the regular interest charged for the period that the loan remains unpaid beyond the due date.

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