Gold loan (also known as a loan against gold) is a secured loan for many Indian borrowers as they can get an easy loan against the gold articles (ranging from 18 carats to 24 carats) with the bank as collateral security. Gold carries a sentimental value for Indians. They buy gold not only as jewellery but a future investment that can serve their needs in desperate times. Whenever there is an urgent cash requirement for covering medical expenses, business expansions, paying higher education fees or debts in normal, Indians often resort to overcome such financial needs by taking a loan against their gold as it is the easiest option for acquiring a loan to even those who do not have great credit or CIBIL score because the gold loan is secured by the gold collateral that one pledges with the bank.
Established in 1939, Muthoot Finance Gold Loan provides hassle-free gold loans with minimal documentation required. What makes the gold loan a prudent choice for the borrowers is the fact that even those with not so great credit or CIBIL score can also apply for the gold loan as Muthoot Finance can always legally retain the overdue loan amount from the deposited gold in case of non-payment of charges.
Muthoot Finance Gold Loan Interest Rate and other Charges
The Muthoot Finance Gold Loan Interest Rate stands at 11.70% per annum. Muthoot Finance Gold Loan Rate per Gram is directly proportional to the purity of the gold being kept as collateral security. Since gold prices change daily, the Muthoot Finance Gold Loan Rate per Gram also varies daily. After calculating the value of your gold using the Muthoot Finance Gold Loan Calculator, the bank gives you 70% of the gold value as sanctioned loan amount and keeps 30% of the amount as a security margin.
Other applicable charges are as follows:
. Processing Fees: 1% + GST
. Prepayment Charges: Nil
. Security Charges: 0.15% of the loan amount (Min Rs. 50 and Max Rs. 600)
. Gold Valuation Charges: As applicable
. Documentation Charges: As applicable
Muthoot Finance Gold Loan Rate Per Gram
The gold loan provided by Muthoot Finance ranges from Rs. 1500 to no maximum limit. The loan amount sanctioned per 10 grams of gold, as well as Muthoot Gold Loan Rate per gram, are discussed below
18 Carat Gold Articles
Gold Loan Processed: Rs. 16,000.
Muthoot Finance Gold Loan Rate Per Gram: Rs. 1,600
19 Carat Gold Articles
Gold Loan Processed: Rs.17,000.
Muthoot Finance Gold Loan Rate Per Gram: Rs.1,700.
20 Carat Gold Articles
Gold Loan Processed: Rs 18,000.
Muthoot Finance Gold Loan Rate Per Gram: Rs 1,800.
21 Carat Gold Articles
Gold Loan Processed: Rs 19,000.
Muthoot Finance Gold Loan Rate Per Gram: Rs 1,900.
22 Carat Gold Articles
Gold Loan Processed: Rs 20,800.
Muthoot Finance Gold Loan Rate Per Gram: Rs 2,800.
Bottom Line
Muthoot Finance Gold Loan service is a hassle-free way to attain cash urgently with minimal formalities such as covering weddings expenses, travel expenses or payments of education fees, bills and debts. Muthoot Finance also offers loans for business purposes such as business expansions or purchasing raw materials. The bank is a boon for farmers as it provides low-interest rate loans for agricultural purposes and other similar activities.
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