Among the numerous forms of loans issued to individuals, gold loans are the fastest-growing. On February 26, 2021, the outstanding loan value against gold jewellery was Rs. 56,596 crores, and by February 25, 2022, it surged to Rs. 71,408 crores, a 26.2% jump.
Several factors can explain the desire for gold loans. First, there is a cultural desire to spend money on weddings, festivals, and other ceremonies. In addition to this, people use it as an emergency fund; if they are in trouble and do not want to borrow money from family or friends; they can turn to gold loans instead.
Features of a gold loan
Some of the features of the gold loan are:
1. Quick Processing
Gold loans are the ideal solution if people require immediate funds to meet their needs.
Since the loan payout process is short, individuals can obtain gold loans in a couple of hours. This is why gold loans are regarded as one of the simplest ways to raise finances in difficult situations.
Obtaining a gold loan is simple with Muthoot FinCorp. The needed gold loan is executed within minutes after submitting the documents.
2. Minimum Documentation
One of the most appealing aspects of a gold loan is that it requires minimal documentation to complete the transaction. Only the gold item and some documents are required of borrowers.
Further, people may not have the appropriate documentation, such as proof of income or a credit score during challenging times.
Securing a gold loan with Muthoot FinCorp is quite simple and uncomplicated, as the gold loan process is authorised swiftly at the fairest interest rates, with just a few documents. Muthoot gold loan plans similarly demand proof of name and residence; no proof of income or credit score is necessary for approval.
3. Attractive Interest Rates
Other features of gold loans are that it comes with lower interest rates because gold is given as security. In addition, a gold loan has lower or no processing fees than a personal loan.
Borrowers can acquire a gold loan from Muthoot FinCorp with attractive interest rates starting from 11.99% per year.
4. Flexible Repayment
Borrowers can also choose from various repayment alternatives with a gold loan.
Bullet payments, part payments, and EMIs are all options depending on one’s demands and budget. Returning their gold loan does not have to be a tough task.
Muthoot FinCorp offers a hassle-free gold loan if they choose the most appropriate mode of repayment.
Further, they can use the gold loan EMI calculator to compute the approximate EMI payments.
5. Loan to Value
The loan amount is calculated as a percentage of the gold pledged, based on the gold’s current market value and quality.
With Muthoot FinCorp, you can get up to 75% of the value of the gold that you pledge. Individuals can get a gold loan up to Rs. 50 lakhs.
6. Special Schemes
The gold loan comes with varying schemes based on different factors and which best suits one’s needs.
Documents required for a Gold Loan
Since the process is streamlined and minimal documentation is necessary, getting a Muthoot FinCorp Gold Loan is quite straightforward.
An applicant must furnish the following documentation to acquire a gold loan:
To establish one’s identification, present one of the given documents:
Any valid government-issued photo identification card, such as PAN card, driver’s licence, voter’s Id card, passport, or Aadhar card.
As proof of address, people can use any of the following documents:
Utility bills, such as water or electricity bills, voter’s cards, Aadhar cards, bank statements, or lease agreements, are examples of documents.
A gold loan is the best alternative when someone needs money fast because they can get cash in only a few hours. However, it has a few flaws.
If the borrower cannot repay the loan amount with interest within the agreed-upon timeframe, lenders are legally allowed to seize the pledged gold and auction it off.
Further, missing repayments on a gold loan will harm one’s credit score. Thus, it is advised that before opting for a gold loan, consider your needs and calculate the EMI on the gold loan EMI calculator to know the financial burden every month.
To know about gold loans, visit the nearest branch of Muthoot FinCorp today!