Gold Loans vs. Other Loan, Which is the Best Option for You?

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When it comes to borrowing money, there are many options in the market. From personal loans to credit cards, the choices can be overwhelming. However, if you have gold jewellery to pledge, a Gold Loan can be an excellent alternative.

Today, let’s compare Muthoot FinCorp ONE’s Gold Loans with other loan types in the market and help you decide which option is best for your financial needs.

Let’s look at the comparison chart below:

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  • Collateral: When it comes to collaterals, Muthoot FinCorp ONE Gold Loans (from home or at branch) requires gold jewellery as security whereas other personal loans and credit cards in the market do not require any collateral. So, if you have gold jeweller that is not being used and can be pledged, a Gold Loan can be an excellent option to put your asset to good use.

  • Interest Rate: One of the biggest advantages of Muthoot FinCorp ONE Gold Loans is the low-interest rate. Compared to the other personal loans and credit cards available in the market, the interest rates for Muthoot FinCorp ONE’s Gold Loans are significantly lower. Muthoot FinCorp ONE offers interest rates on Gold Loans starting as low as 0.83%* p.m.

  • Loan Amount: The loan amount for Muthoot FinCorp ONE Gold Loans is based on the value of the gold jewellery pledged. This means that the loan amount can be higher or lower based on the gold's current market value. However other personal loans and credit cards available in the market have fixed loan amounts, which can limit your borrowing ability. Muthoot FinCorp ONE offers a loan-to-value ratio of up to 70% for your gold jewellery.

  • Processing Time: The processing time for Muthoot FinCorp ONE Gold Loans is fast compared to the personal loans available in the market. You can get instant approval and disbursal for Gold Loans, in just 30 mins*. On the other hand, personal loans can take several days to get approved and disbursed. And other credit cards available in the market have the fastest processing time, but the interest rates are extremely high.

  • Repayment Term: The repayment term for Muthoot FinCorp ONE Gold Loans is flexible, meaning you can choose a repayment period that best suits your financial situation. The other personal loans and credit cards available in the market have fixed repayment terms, which can be challenging if you have irregular income.

  • Eligibility: To get Muthoot FinCorp ONE Gold Loans, you need to own gold jewellery. However, personal loans and credit cards available in the market require you to have a good credit score, which can be a challenge for some. Therefore, if you have bad credit or no credit history, Muthoot FinCorp ONE Gold Loans can be an excellent choice for you.

  • Risk: The risk involved with Muthoot FinCorp ONE Gold Loans is relatively low. Since the loan is secured by gold, the lender has an asset to fall back on in case of default. However, personal loans and credit cards available in the market are unsecured loans, which means that the lender has no collateral to fall back on in case of default.

Lastly, Muthoot FinCorp ONE Gold Loans from home or at branch, can be an excellent on if you have gold jewellery to pledge. Compared to personal loans and credit cards available in the market, Muthoot FinCorp ONE Gold Loans offer lower interest rates, flexible repayment terms, and higher loan amounts.

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 and book an appointment for a Gold Loan from your home or branch to unlock the value of your gold jewellery.

Alternatively, you can also follow us on Facebook, Instagram, Twitter or LinkedIn to stay tuned to our latest offerings.

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