The gold financing sector has emerged as the quickly accessible source of credit for business communities as well as households. India is considered the largest consumer of gold, and there is enormous scope for gold loan lenders. The opportunity for gold loans will widen in the coming years with the emergence of lending against digital gold and gold secured credit cards. You may have a word for gold wallets also in the upcoming years.
Individuals under the low-income category and small businesses can be affected hugely by any disruption in earnings. A gold loan can save them from temporary financial turbulence. Indians are now more open to mortgaging jewellery for immediate cash. The gold loan market has been a booming segment where banks and non-banking finance companies (NBFCs) offer gold loans at easy terms.
How is it beneficial for the borrower to pledge gold?
Undoubtedly, there are numerous benefits of a gold loan. A few of those are listed below:
- No restriction to end use of credit
- Get funds even if there is no credit history
- A competitive and lower interest rate is charged
- Nominal or no processing fees at all
- Give a boost to your credit score with easily accessible gold loans
- High loan to value ratio
- Wary of foreclosure charges, unlike personal or other types of loans
Top 5 companies offering gold loans at the best terms
- Muthoot FinCorp Gold Loan
| Loan amount | Up to Rs 50.00 lakhs |
| Loan Tenure | 3-24 Months |
| Interest Rate | 6.90% p.a |
| Processing Fee | Minimal charge of Rs 20 to 0.25% of the loan value |
| Foreclosure Charges | Nil |
- SBI Gold Loan
| Loan amount | Maximum Rs 50.00 lakhs |
| Loan Tenure | Up to 36 months |
| Interest Rate | 7.30% p.a |
| Processing Fee | 0.50% of the Loan amount minimum Rs.500/- |
- HDFC Gold Loan
| Loan Amount | Minimum loan amount of ₹ 10,000/- available in rural markets |
| Loan Tenure | 3 months to 24 months |
| Interest Rate | 7.75% |
| Processing Fee | 1% of the disbursal amount |
| Foreclosure Charges | 1% |
- Canara Gold Loan
| Loan amount | Minimum Rs. 5,000/- Maximum Rs.35,00,000/- |
| Loan Tenure | Up to 12 months |
| Interest Rate | 7.25% p.a. |
| Processing Fee | 0.50% of the Loan amount minimum Rs.500/- |
| Income proof | Salary Certificate and Form No.16 / income proof |
- ICICI Gold Loan
| Loan amount | Rs 50,000, up to Rs 10,000,000 |
| Loan Tenure | 6 months – 12 months |
| Interest Rate | 10% |
| Processing Fee | 1% |
Features of Muthoot FinCorp Gold Loans
Among these, the top gold loan company is Muthoot FinCorp. Have a look at the following detailed features of Muthoot Fincorp Gold Loan that keep it on the top of the list:
- High Loan Amount: Your savings in gold form can help you to meet your financial obligations with a loan of up to Rs. 50 lakhs.
- Affordable Interest Rates: The interest rate depends on the fineness of the gold to be collateralised. With Muthoot FinCorp, it is as low as 6.90% p.a.
- ‘Pay Interest Only’ Option: Borrowers can pay the interest during the loan tenure, and the principal loan amount can be paid at the end of the loan tenure. There will be no burden on the borrower to pay a huge amount at once.
- Special Gold Loan Schemes: Muthoot FinCorp makes its client more comfortable with a gold loan. It offers various gold loan schemes. Borrowers can choose a suitable scheme as per their financial needs.
- Cashback Offers: A disciplined borrower can enjoy great cashback offers from the lender. Loan EMIs should be regular without any delay to get offers.
- Loan Disbursal within 10 minutes: When it’s an emergency, one can get funds in the account directly within ten minutes after successful gold loan application submission and gold evaluation.
- No Income Proof: Muthoot FinCorp helps people with easy gold loans without asking for income proof.
- Foreclosure Charges: There is no loan foreclosure fee. Whenever borrowers are comfortable repaying the gold loan, they can pay it.
- Minimal Documentation: The gold loan application process is online. Submit the online application and visit the nearest branch for gold evaluation and receive the loan credit directly in the account.
Thus, you need not sell your gold. Get out of financial trouble with easy Muthoot FinCorp gold loans. While searching for the Gold Loan company near me – you may find Muthoot FinCorp as the first option as it serves over 1,00,000 customers a day from 3500 branches in India.
Who Should Opt For Gold Loan?
- Individuals with short-term fund requirements can quickly get credit.
- Borrowers with low credit scores need not worry. Gold loans are easy to get, even for individuals with a low credit score or no credit history.
- Individuals who have gold in lockers but pay high interest on personal loans can apply for a gold loan to repay their existing loans and reduce the burden.
- Or anyone with available gold in their lockers and looking for financial aid quickly..
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