Exploring the Different Types of Gold Loans: Which One Fits You Best?

Gold loans are gaining popularity due to their quick and easy process for obtaining funds to meet urgent financial requirements. A gold loan is a secured loan that involves pledging gold jewelry or ornaments as collateral. Financial institutions provide funding against gold tailored to accommodate the diverse needs of borrowers. 

With the rising demand for gold loans, Muthoot Finance has introduced several types of popular gold loan schemes tailored to customers' diverse needs. These schemes vary in tenures, interest rates, and loan amounts, providing borrowers with ample options to select the most suitable one. The gold loan ROI (Rate of Interest), determines the cost of borrowing against your gold collateral. These gold loan schemes have flexible repayment options and minimal documentation, making them an attractive option. Let's dive in.

Different types of Gold Loan Schemes

Muthoot Finance offers different types of gold loan schemes to customers. Each scheme has its own advantage and caters to different needs and types of customers.

Muthoot One Percent Loan

Introducing the Muthoot One Percent Loan, an innovative offering designed to meet your financial needs conveniently and efficiently. With the Online Gold Loan (OGL) facility available, you can access funds ranging from ₹1,500 to ₹50,000, making it suitable for various requirements. The loan comes with a flexible tenure of 12 months, providing ample time for repayment according to your convenience. 

What's more, customers benefit from complimentary insurance coverage for pledged gold ornaments, offering added security and peace of mind. Additionally, this scheme boasts the lowest interest rate in the market, set at 12% per annum, provided 100% interest is paid monthly, ensuring affordability and affordability for borrowers. 

Muthoot Ultimate Loan (MUL)

Muthoot Ultimate Loan (MUL) features an Online Gold Loan (OGL) facility for easy accessibility. With loans starting from ₹1,500 and no maximum limit, customers can avail themselves of flexible financing options. Enjoy a tenure of 12 months, complimentary insurance for pledged gold ornaments, and a competitive interest rate of 22% per annum, with a 2% rebate available for monthly interest payments.

Muthoot Mudra Loan

Another type of gold loan scheme is the Muthoot Mudra Loan, exclusively available at South India branches. Borrowers can avail loans ranging from ₹1,500 to ₹1 lakh, with the added benefit of a highly discounted interest rate of 11.9% per annum. The minimum amount of gold required for a gold loan varies depending on the lender's policies and may differ based on factors such as purity, weight, and the loan-to-value ratio.

Muthoot Advantage Loan

Muthoot Advantage Loan, accessible through the Online Gold Loan (OGL) facility at select branches across South India. Borrowers can secure loans ranging from ₹50,000 to ₹5 Crores, with a convenient tenure of 12 months. Enjoy added benefits such as free insurance for pledged ornaments and an attractive interest rate of 18% per annum.

Muthoot High Value Plus Loan (MHP)

Muthoot High Value Plus Loan (MHP) provides borrowers with access to the Online Gold Loan (OGL) facility, allowing them to secure loans ranging from ₹1,90,000 to ₹5 crores. With a flexible tenure of 12 months, borrowers can benefit from free insurance coverage for their pledged ornaments. Additionally, MHP offers competitive interest rates starting as low as 14% per annum, ensuring maximum value for borrowers.

Muthoot High Value Loan (MHL)

Muthoot High Value Loan (MHL) presents borrowers with the convenience of the Online Gold Loan (OGL) facility, offering loans starting from ₹50,000 with no maximum limit. With a flexible tenure of 12 months, borrowers enjoy the added benefit of free insurance coverage for their pledged gold ornaments. Furthermore, MHL boasts competitive interest rates as low as 15% per annum, ensuring maximum value for borrowers. This loan option is available at branches located across South India, providing accessibility and convenience to borrowers in the region.

Muthoot Big Business Loans

Benefit from low rates of interest and maximum Loan to Value (LTV) ratio with Muthoot's Big Business Loan. With a flexible tenure of 12 months, borrowers can enjoy peace of mind knowing their pledged gold ornaments are covered by free insurance. 

The Online Gold Loan (OGL) facility makes accessing funds convenient, with loan amounts ranging from ₹5 Lakhs to ₹500 lakhs based on various schemes. Choose from Muthoot's range of Big Business Loan options, including Silver, Platinum, Diamond, and Elite, each offering competitive interest rates starting from 12.9% p.a. for Silver and decreasing incrementally to 10.5% p.a. for Elite.

High value retention (HVR)

Exclusively available at branches in South India, Muthoot Finance offers a lucrative loan option with loan amounts ranging from ₹10 lakh to ₹5 crores. Enjoy the lowest interest rate of 10.9% p.a. and a flexible tenure of 12 months. Additionally, borrowers benefit from free insurance coverage for their pledged ornaments, providing added security and peace of mind throughout the loan term.

Browsing how much gold loan I can get? So, it depends on factors such as the purity and weight of your gold collateral, as well as the loan-to-value (LTV) ratio offered by the lender. When choosing the right type of gold loan scheme, follow these steps and considering your financial needs, gold assets, repayment preferences, and other relevant factors, you can determine the type of gold loan scheme that fits you best.