Know the pros and cons of a Gold Loan
Opting for a gold loan has numerous advantages and relief during financial challenges.
Let us look into the advantages and disadvantages of the gold loan.
Gold loan advantages:
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An instant loan against jewellery with minimum documentation: You can avail a gold loan with minimum documentation like a PAN card and Government approved ID. Muthoot FinCorp ONE, one of the leading NBFCs in India, offers unparalleled convenience of gold loans from the comfort of your home. Click here to book an appointment.
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Quick approval and disbursal of gold loans: Muthoot FinCorp ONE offers gold loans within 30 minutes* from the comfort of your home. Once you book an appointment with us, one of our loan managers will visit you to walk you through the entire process. After gold evaluation and approval, the loan amount will be quickly transferred to your account with 0% processing fee and no hidden charges.
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The lowest interest rate: Gold loan interest rate is the lowest compared to other types of loans. Muthoot FinCorp ONE provides best-in-industry interest rates as low as 9.95%* per annum without foreclosure penalty and we do not charge for our gold evaluation and collection services.
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No CIBIL Score is needed: Gold loans are secured loans as it is issued against the gold pledged as collateral. Your salary certificate or credit score is not mandatory for Muthoot FinCorp ONE gold loan.
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Flexible repayment options: Muthoot FinCorp ONE offers different repayment models like partial payment, upfront interest, interest plus components of the principal, or bullet payment. Access the Muthoot FinCorp ONE online gold loan calculator to learn more about customized loan schemes. With our easy and flexible repayment options, you can repay your loans before the tenure period.
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Maximum Loan-to-Value of the gold: Since it is a secured loan, you can monetize the best value for your gold in the market with no hidden charges. We offer the maximum rate for the pledged gold on verification of the purity and the current market price of gold.
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Secured and insured always: Since it is a secured loan, you can monetize the best value for your gold in the market with no hidden charges. We offer the maximum rate for the pledged gold on verification of the purity and the current market price of gold.
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No restrictions on the end use of cash: Unlike auto or home loans, the end use of the gold loan amount is not limited to a specific purpose.
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Tax exemption on gold loan: You can avail tax benefits on gold loans based on the utilization of the loan amount. Funds spent on home improvement, residential property purchase or construction, asset purchase, or utilized for business purposes are eligible for tax benefits, subject to the provisions put forth under the Income Tax Act, 1961.
A gold loan can be a wise investment if you consider a few things
Limited loan amount: The gold loan amount is limited to the purity and weight of the collateral ornaments. Lenders do not consider the value of any precious stones attached to the ornaments. The loan to Value ratio (LTV) determines the loan amount. Banks and NBFCs are allowed to advance a maximum of 75% of the market value of gold, which means the borrower always receives less than the market value of gold.
Banks will accept only gold ornaments as collateral, not any other form of gold.
May lose gold if defaulted: If the loan amount is not repaid in time, the lender will send reminders and charge penalties. The lender is entitled to auction the gold and cover the total outstanding if the repayment is not made despite follow-up reminders. Non-payment could result in a negative influence on your credit history.
How does Muthoot FinCorp ONE gold loan from home can be beneficial to you? When you opt for Muthoot FinCorp ONE’s gold loan from home, you can access your gold anytime, at your doorstep or from our branch. With our easy and flexible repayment options, you can repay your loans before the tenure period. Explore the customized schemes using Muthoot FinCorp ONE online gold loan calculator.
You should always choose a reputed organization like Muthoot FinCorp ONE for gold loans and enjoy quick loan disbursal and the best-in-industry interest rates. The flexible repayment options will help you to settle the loan at your convenience and help resolve your financial challenges.
Head to our website www.muthootfincorpone.com to book an appointment now. *T&C applies.
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