A gold loan is a secured loan with the borrower’s collateralised gold. During a financial crunch, a gold loan can rescue an individual. Various lending institutions, like banks and non-banking financial companies (NBFCs), accept gold items as collateral to sanction a loan. One can pledge gold jewellery, including bangles, necklaces, earrings, bracelets, pendants, gold coins, and other gold valuables verified by the banks for collateral. The gold loan market in the organised sector is valued at Rs 4,149 billion. Easy accessibility of such loans is the primary reason behind such increasing demand for gold loans.
Among numerous gold loan companies, it may be confusing to choose the best lending institution. Here are the top three banks offering gold loans:
|Bank Name||Interest Rate||Processing Fee||Loan Tenure|
|Fincare Small Finance||10.99%||Up to 0.5% of the loan amount||3-9 Months|
|ICICI Bank||11% p.a. onwards||1% of the loan amount||3-24 Months|
|Axis Bank||12.50% p.a. onwards||1% of the loan amount||3-24 Months|
The Best Gold Loan Company
Alternatively, like many individuals, if you are looking to get the best gold loan at more favourable terms than many banks, you can consider one of the trusted lending institutions, Muthoot FinCorp. They have taken their 134+ years legacy forward to empower millions of Indians with required funds against gold loans.
It endeavours to serve over one lakh customers a day with over 3600+ branches across India. Their customers can avail of the following benefits of gold loans:
1. Low Processing Fee
The lender charges are as low as 0.25% as the processing fee, which is negligible for the loan cost and low as compared to banks offering gold loans.
2. Best Value of Your Gold
The lender offers the best value for your gold via advanced machinery and methods to maximise the gold loan value. You can get up to 75% of the total market value of gold. The loan amount will be finalised based on gold fineness. You can utilise your gold with a purity of 18-24 karats to get a high loan value.
3. High Standard Safety Protocols
The RBI (Reserve bank of India) has specified the minimum level of the physical infrastructure to be managed by the lenders to finance against gold. There must be a safe deposit vault and appropriate security measures to operate the vault that can assure the borrower about their pledged gold’s highest safety. With trusted institutions like Muthoot FinCorp, professional teams manage the gold loans and their safety measures. They have strong vaults inside the strong rooms built as per the specifications set by the RBI that are monitored under CCTV cameras 24×7 to ensure the maximum safety of your gold.
4. Affordable Interest Rates
Borrowers can choose from various gold schemes, depending on the quality and quantity of gold valuables to be pledged. You can opt for the best gold loan scheme using the gold loan calculator as per your eligibility. It will let you get funds against the best scheme at an affordable interest rate.
5. Meet Your Small or Big Ticket Expenses
Gold finance is an instant financing option predominantly for small ticket expenses. The loan amount starts at INR 1500. Also, borrowers can pay the big ticket expenses with gold loans as these loans can go in lakhs with Muthoot FinCorp. Meet any sudden or planned financial commitments with gold loans.
6. Minimal Paperwork and Eligibility Criteria
One can avail of gold loans quickly with minimum paperwork. The lender doesn’t check the applicant’s credit score or demand income proof to evaluate their repayment capacity before sanctioning a gold loan. The company has expanded its gold loan service network digitally to make the process of gold loans more convenient.
7. Quick Loan Approval and Express Speed of Disbursal
Once the loan is evaluated, you can get credited with your loan amount directly to your bank account. It is a swift process that takes a few minutes after gold evaluation.
8. Top up Facility
If borrowers have not taken the entire loan amount as per their eligibility, they can easily top up their loan whenever they need it using the official website of the lender or through their mobile app.
Thus, utilise the gold calculator to make an informed decision. Know your eligibility for the loan amount. Choose a comfortable EMI option available under different gold loan schemes of Muthoot FinCorp. Visit your nearest branch today!