Basic questions related to you and the gold that you need to acquire the loan

Gold has always been held in high regard by Indians and for good reason. A gold investment or physical gold is considered auspicious, a symbol of prosperity and security for uncertain times. Gold articles such as coins and jewelry are often passed down through generations and are considered heirlooms. However, these gold items are often locked away in safety lockers. People have now come to realize the power of gold as a means to generate funds. Gold loans provided by gold loan companies have become quite popular. All you have to do is visit a reputable gold loan company such as Muthoot Finance’s website. You can check the gold loan interest rate, calculate your estimated EMI via the gold loan EMI calculator and select the most suitable scheme.

Things to Know Before Availing of a Gold loan

Gold loans are one of the easiest ways to finance short-term needs, primarily because of the ease of the application process. If you wish to take out a loan against your gold, you should ask the following question to better understand the entire process:

What is a Gold Loan?

A gold loan or loan against gold means getting a loan by pledging gold articles as collateral to the lender and the loan amount is usually based on the current market value and quality of gold that you have pledged.

Suggested Read: A Beginner’s Guide To Gold Loans In India

Who is eligible for a gold loan?

A resident Indian above the age of 18 who is the rightful owner of the to-be-pledged gold items is eligible for a gold loan. He/she can be a salaried person, a housewife, or any self-employed person.

How can I check my loan eligibility?

You can check the gold loan eligibility online via the Gold Loan Calculator or visit the nearest gold loan company branch.

Suggested Read: How Are Gold Loan Eligibility And Amount Calculated?

What is the interest rate for a gold loan?

It is a secured loan and thus the interest rates are lower than unsecured ones. The gold loan interest rate could vary for different lenders. You can easily check the same on the lender’s website on the gold loan interest rate calculator.

Suggested Read: 6 Key Points To Understand About Gold Loan Interest Rates

What are the basic documents required for a Gold Loan?

While the detailed documentation requirements are lender-specific, the basic documents that are required are:

• Passport-sized photographs.
• Identity proof - Aadhaar card, PAN card, etc.
• Address proof - The electricity bill, telephone bill, etc.

Suggested Read: What Kyc Documents Are Required For A Gold Loan?

How Is The EMI Calculated On A Gold Loan?

You can find various online gold loan EMI calculators to calculate the estimated EMI. However, the significant factors determining the EMI amount are based on the following.

• The gold loan interest rate
• Loan amount
• Loan tenure

What kind of gold articles can I pledge for a gold loan?

Most lenders consider only gold jewelry of purity range between 18k to 24k as collateral. Some lenders consider gold coins, bars, and bullion too. However, only the weight and purity of gold in the jewelry are considered and not the weight of embedded stones, if any.

What Is The Maximum Gold Loan You Can Avail Yourself Of?

Most banks and NBFCs lend up to 75% of the gold value. However, some lenders do lend up to 90%. Muthoot Finance gives you the best value of gold per gram on Muthoot Finance gold loans.

What is the tenure of a gold loan?

Generally, the tenure ranges from 3-12 months. However, the term for repaying does not exceed 20 months.

How can I make the loan repayments?

There are multiple ways such as online bank transfer, cash/cheque deposit, direct bank debit via a standing instruction, net banking, UPI, debit cards, demand drafts, etc.

For what purposes can I use the gold loan amount?

There’s no end-use restriction for a gold loan. It can be used for both personal and business purposes.

I have a bad credit score. Can I get a gold loan?

Your credit history has no bearing on a gold loan. Even a person with a low credit score can apply for a gold loan.

Will my credit score get affected if I don’t repay the gold loan on time?

Your credit history generates a CIBIL score. Therefore, defaulting on your gold loan EMIs or full repayment may negatively impact your CIBIL score.

Conclusion

Muthoot Finance has a wide array of gold loan schemes to suit every need. Ease of documentation, quick approvals, and disbursals have made applying for a gold loan so much easier and more convenient. Their efficient tools such as gold loan calculator, gold loan EMI calculator, etc have made it the most trusted gold loan company. And what’s better is that you can get a gold loan from the comfort of your home.