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| September 2, 2022

How does the Gold Loan Process Work?

A gold loan is the easiest form of loan that you can avail these days. It is simple and it doesn’t take much time to get a loan. Indians have a long history of buying gold and putting it to use in times of need. According to a study conducted by the World Gold Council, Indians have more than 23,000 tonnes of gold. It is estimated to be somewhere around Rs 54.51 Lakh Crore. This means that Indian households have the largest quantity of gold in the world. If you have certain questions like what is a gold loan, What is gold loan interest rate or what is gold loan process; then here’s all the information that you seek:

What are the Interest rates on gold loans?

Interest rates on gold loans are much better than on personal loans. At Muthoot, the gold jewel loan interest rates start from as low as 9% for big business loans and 12% for small value loans. This is one of the big reasons why most Indians prefer going for a gold loan in comparison to any other type of loan.

How much Loan Amount can I get for my Gold?

The loan amount you get will be based on the level of purity for the gold you are pledging and the rate of gold on that given day. The safe storage of gold is the responsibility of the lender who must ensure that your gold is safely returned to you once the loan amount is repaid in full.

When you avail a gold loan from Muthoot Finance, you need not worry about the safety of your gold since it is stored in specialized safe rooms in tamper-proof packaging and kept under 24x7 CCTV surveillance.

How to get a Gold Loan in India?

The gold loan procedure in India is quite simple. Simply walk into your nearest Muthoot Finance branch. Our experts will first check the purity of your gold. They will also check the weight of the gold to determine its value. Depending on the quality of your gold, you can get a loan. It is always a good idea to carry along some extra gold when you are asking for a gold loan. As mentioned earlier, sometimes there are issues related to the purity of the gold. In this case, you can use the additional gold to get a good bargain for your gold loan.

What is a Gold Loan Calculator?

A Gold Loan calculator is used to determine the loan amount depending on the purity of your pledged gold. This gold is kept as collateral by the lender until the loan is fully paid. Thereafter, it is returned safely to the borrower.

What is a Gold Loan Renewal?

You can ask the lender for a new loan against the same gold used as collateral for the first loan. However, you can only do so if you have paid the complete loan with interest on the previous loan. This process is referred to as the gold renewal process.

What are the Documents Required for a Gold Loan?

As mentioned earlier, the gold loan process is quite simple. However, you will need to carry certain documents when asking for a gold loan. This list includes:

  • Driver’s License
  • Voter ID Card
  • Aadhaar Card
  • PAN Card

If you are planning to take a home loan, then visit Muthoot Finance and check out our gold loan schemes. As India’s most trusted Financial Services company*, we offer a variety of gold loan schemes which means you can choose the most suitable gold loan scheme that meets your requirements.

*As per Power of Trust, TRA's Brand Trust Report

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