Factors influencing Gold Loans


Gold loan Companies, a friend in need, and their challenges. Gold is a universally accepted commodity and a liquid asset that has seen its value appreciated over the decades. In India, Gold prices have been showing an upward trend over the last five decades.

Due to the sentimental value associated with our gold jewelry, we rarely trade them to meet immediate financial needs. Alternatively, we pledge Gold for instant cash requirements. Banks and NBFCs specializing in gold loans like Muthoot FinCorp ONE are the best sources to monetize your gold jewelry. There are many factors influencing Gold Loans. Let us understand some of them which can be beneficial for you to acquire the maximum value out of your precious jewelry before you fill out the Gold loan application.

1. Demand for the Gold Loan in the Market Taking a loan using Gold as collateral is a wiser decision than selling it, as the value of Gold always appreciates. Before applying for a gold loan for your short-term cash needs, you should consider the accessibility and customer service offered by the lender. At Muthoot FinCorp ONE, you will enjoy dealing with our friendly team for a smooth loan application process.

Being part of a traditional player and having new-age financial technology Muthoot FinCorp ONE has started to offer innovative products such as doorstep gold loans. You can access Muthoot FinCorp ONE online gold loan calculator to choose the best suitable customized scheme for you. Our flexible repayment plans start from one week to 36 months. We offer a 0% processing fee as we don't charge our customers for gold evaluation or collection.

2. Regulation of Financial Institutions As a gold loan customer, this one piece of information is imperative for you. The regulation of the gold loan company is crucial as you entrust them to safeguard your valuables. At a broad level, gold loan lenders are classified into organized and unorganized gold loan sectors.

The organized gold loan market includes banks (public, private, small finance, and co-operative), Non-Banking Financial companies (NBFCs), and Nidhi companies. Muthoot FinCorp ONE, one of the country's leading and most trusted NBFCs, has a legacy of 135 years in serving gold loan customers.

Money lenders and pawn brokers influence the unorganized market. With their local market knowledge, unorganized players provide instant loans against jewelry with minimum documentation but at a very high-interest rate. You must be vigilant in dealing with this segment.

Muthoot FinCorp ONE is from the family of the renowned and most trusted financial services brand in the country. Your Gold is secured and Insured for an added layer of security at all times. You can collect your jewelry anytime at your doorstep or from the branch in the same pristine condition we received.

3. Global inflation and the Gold price volatility Global inflation and Volatility in gold prices significantly affect the overall performance of gold loan products. ONE Muthoot offers the maximum LTV ratio, which determines the liquidity potential of gold assets.

The gold loan interest rate is also correlated with Global inflation and market prices of Gold. At Muthoot FinCorp ONE, we provide the best gold loan interest rates in the market, starting from 9.95% per annum*.

Conclusion Global inflation, Gold price volatility and demand for gold loans in the market are major factors influencing gold loans. Primary beneficiaries of doorstep gold loan facilities are digitally and financially literate and those who want to enjoy the unparalleled convenience of gold loans from the comfort of their home. You can access the Muthoot FinCorp ONE online gold loan calculator to evaluate your gold loan eligibility and repayment schedule.

Now, you are ready to unlock the value of your Gold from the comfort of your home. Log on to our website www.muthootfincorpone.com today, and start your gold loan application process. *T&C Apply.

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