What are the core features of a Gold Loan?


How to get a loan by using gold as collateral? According to the World Gold Council (WGC), the demand for gold in India has increased to over 800 tons in 2022. With people pledging their gold jewelry for emergency cash, banks have reported a 45% jump in gold loans outstanding as of December 2021. As technology got advanced, it is now easy to get an instant loan against gold in India.

When you opt for a gold loan, you should definitely check the ease of availability and ample repayment options. Let us have a look into the core features of Gold Loan and how MuthootFincorp ONE, one of the leading NBFCs in India, offers unparalleled service to its customers.

  • An instant loan against jewelry with minimum documentation: You can avail a gold loan with minimum documentation like address proof and Government approved ID. Your credit score is not mandatory for a gold loan as it is secured against your gold as collateral.

  • Unparalleled Convenience: MuthootFincorp ONE offers loan approval and disbursal in less than 30 minutes*. You can enjoy liquidity anytime if you have gold lying idle in your possession.

  • The lowest interest rate: Gold loan interest rate is the lowest compared to other forms of loans. MuthootFincorp ONE offers gold loan interest rates as low as 9.95%.

  • Income proof is not mandatory: Gold loans are issued against the gold pledged as collateral. Even if you have unsatisfactory credit scores, you can apply for gold loans.

  • Flexible Repayments: MuthootFincorp ONE offers different repayment models like Equated Monthly Installments, Monthly Payment of Interest, Partial Payments, Bullet Payments and Foreclosure.

  • Maximum Loan-to-Value: Since it is a secured loan, you can get a maximum of 90% of the market value of gold, subject to the purity of your gold jewelry.

  • Always insured: Your precious jewelry will be safe at the nearest Muthoot FinCorp Branch. Gold that you pledge with us is insured for an added layer of security at all times. Once the loan is fully settled, you can collect your jewelry.

  • 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. You can utilize the fund for medical, educational or agricultural purposes.

In a nutshell, opting for a gold loan has tremendous benefits and can save you in dire situations. Core features of gold loans are their speedy disbursal, minimalistic documentation, and the safety of collateral that comes with the lowest interest rate.

MuthootFincorp ONE, the one-stop solution for all your financial needs, offers a customized loan scheme against your gold. A gold loan with MuthootFincorp ONE is stress-free as individuals can have a loan repayment schedule suitable to their budget. While the gold is safe in our locker, you can utilize the loan amount for any purpose. Head to our website www.muthootfincorpone.com to connect with us. *T&C apply.

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