Busting 9 Common Gold Loan Myths
Gold loans have always been a convenient financial tool, offering flexibility in documentation, low interest rates, flexible eligibility criteria, and affordability. However, despite its popularity, there are several myths that surround Gold Loans. Let us look at some of these myths and their reality.
Some common Gold Loan myths:
- Myth: Gold Loans Are Only Available At Traditional Jewellers
- Myth: Gold Loan Processing Time is Complex And Time-consuming
- Myth: Your Gold Jewellery Is At Risk
- Myth: Gold Loan Interest Rates are Exorbitant
- Myth: Antique Jewellery is Not Accepted for Gold Loans
- Myth: Gold Loans Are Only for Desperate Situations
- Myth: Gold Loans Require A Good Credit Score
- Myth: Gold Loans Require Extensive Documentation
- Myth: Gold Loans are Only for Rural Areas or Small-Scale Borrowers
Now let’s bust these Gold Loan myths:
Myth 1: Gold Loans Are Only Available At Traditional Jewellers
Reality: Many believe that gold loans are exclusively offered by traditional jewellers, but that is not the case. Prominent banks and NBFCs offer Gold Loans with many benefits. At Muthoot FinCorp ONE you can get Gold Loans From Home or you can also visit one of Muthoot FinCorp Ltd.’s 3600 plus branches across India and apply for it in person.
Myth 2: Gold Loan Processing Time is Complex And Time-consuming
Reality: Contrary to popular belief, obtaining a Gold Loan is a simple and quick process. With Muthoot FinCorp ONE’s Gold Loan from Home, you can get your loan processed in 30 minutes* with minimal documentation.
Myth 3: Your Gold Jewellery Is At Risk
Reality: At Muthoot FinCorp Ltd., we ensure the safety of your gold jewellery by transporting it in GPS-tracked lockers to our branches equipped under strict surveillance. Additionally, we provide automatic insurance for your pledged gold jewellery.
Also, contrary to belief, Gold Loans let you to reclaim you pledged gold upon successful repayment of the loan amount and interest.
Myth 4: Gold Loan Interest Rates are Exorbitant
Reality: At Muthoot FinCorp ONE we offer competitive rates with as low as 0.83%* p.m. depending on your city. We also try to give the maximum loan-to-value for your gold, to ensure affordability. You can access our online Gold Loan calculator on the website and app to explore customised loan schemes and the interest rates.
Myth 5: Antique Jewellery is Not Accepted for Gold Loans
Reality: We accept gold jewellery in any form with a purity of 18 karat and above. Even jewellery with precious stones is considered, with eligibility estimated by deducting the stone weight from the gold weight.
Myth 6: Gold Loans Are Only for Desperate Situations
Reality: Gold loans are not just for emergencies but can be utilised for various financial needs, including home loan downpayment, to purchase a new car, for business expansion, education, or home renovation.
Myth 7: Gold Loans Require A Good Credit Score
Reality: Gold loans are secured by collateral i.e. your gold jewellery. Therefore, making your credit scores less relevant. Even individuals with low credit score can get Gold Loans.
Myth 8: Gold Loans Require Extensive Documentation
Reality: At Muthoot FinCorp ONE you get Gold Loans with minimal documentation, making it a hassle-free and seamless financing option compared to other loans.
Myth 9: Gold Loans are Only for Rural Areas or Small-Scale Borrowers
Reality: Gold loans are for everyone, whether you are in a city or a village, a businessman or a small-scale borrower. At Muthoot FinCorp ONE we provide Gold Loans to all.
Our Gold Loan from Home offers versatile usage with no restrictions. Whether it's a family wedding, home purchase or renovation, education expenses, or a dream vacation, with our low interest rates and flexible repayment options, our only aim is to support your financial goals.
So, what are you waiting for? Book an appointment for Gold Loan From Home through the Muthoot FinCorp ONE app or visit the nearest Muthoot FinCorp Ltd. branch to apply now.
About Muthoot FinCorp ONE
Muthoot FinCorp ONE is an all-in-one digital financial platform that makes getting an MSME & a Gold Loan, investing in Digital gold & NCDs, making payments & remittances, buying insurance & exchanging forex, simple and convenient.
As an SBU of Muthoot FinCorp Limited, Muthoot FinCorp ONE is backed by a legacy stretching back over 135 years, and the trust of more than 1 crore customers and is building a holistic financial ecosystem using the latest digital products for lending, investing, protection and payments.
Muthoot FinCorp ONE continues to uphold the values of the parent, the Muthoot Pappachan Group (Muthoot Blue) by providing its customers with easily accessible services, replete with unmistakable quality. The Muthoot Pappachan Group is among India’s most reputed names in the financial services industry, with customers in diverse segments like Automotive industry, Financial Services, Hospitality, Alternate Energy, Real Estate, and Precious Metals.
So what are you waiting for? Head to the Play Store and download the Muthoot FinCorp ONE app. You can also visit the website today to know more. Alternatively, you can also follow us on Facebook, Instagram, Twitter or LinkedIn to stay tuned to our latest offerings.
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