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| February 21, 2024

Reasons Gold Loans Are Popular Among Borrowers in India

The demand for gold loans in India has surged in recent years. Deeply embedded within the country’s cultural traditions, this precious metal holds great historical & religious significance while also representing wealth and success. The value of gold does not depreciate over the course of time. Rather, it sees appreciation. In times of prosperity, Indians always shop for gold as an investment towards a secure future. Moreover, gold can also be used as collateral while seeking finances for businesses and personal needs. All this is driving the gold loan market in India where attractive interest rates on gold loans are now commonplace.

However, it is important to find a trustworthy and credible lender, one who will guide you through the entire process transparently. This is where we come into the picture. Muthoot Finance has been accoladed as India’s No. 1 Most Trusted Financial Services Brand* since 2016. Individuals with low credit score who are in possession of gold can avail loans easily now. Easy access to credit that provides financial assistance to emerging entrepreneurs could be a reason for the popularity of gold loans in India. Further, evaluation of terms & conditions and seeking assistance from a financial expert are essential before availing gold loan.

Reasons for the Popularity of Gold Loans in India

Quick Processing Time

Availing loans through a formal credit line often takes longer to process. However, when you pledge your gold in order to avail a loan, the processing time is comparatively much quicker. With the help of our gold loan calculator, you can calculate the gold loan amount you want. That way, you’ll have the clarity you need and spend less time on processing. A hassle-free option for those who need funds immediately, gold loans allow you to address your financial emergencies on time.

Ease of Accessibility

With the easy availability of gold loans, individuals can now avail loans with minimum documentation and low credit score. This also includes those who cannot obtain a loan through a formal credit line. You can consider a wide range of gold loans that we have on offer. Those who seek an additional level of convenience can go for our Loan@Home service which allows you to avail a gold loan in the comfort of your home. With the help of our resources, you can also calculate the gold loan per gram for any loan amount you desire. The whole process is seamless and transparent, right from getting the gold valued to receiving money in your account.

Multiple Repayment Options

Both Banking and Non-Banking Finance Companies offer flexible repayment options so that customers can manage their finances better. In such repayment schedules, you pay the gold loan interest first and then later pay the principal amount. You can also make partial payments or opt for pre-closure before the due date. Moreover, you can pay both the interest and principal amount through EMI on a monthly basis. You also have the choice to pay the entire amount at the end of your loan payment plan.


Lower Interest Rates & Processing Fees

Interest rates for gold loans are typically low when compared to other loan products like personal loans or credit cards. Further, most lenders offer gold loans at zero processing fees, thus making it an attractive option among borrowers who want to avoid extra charges while managing their finances. In this thriving gold loan market, the competition is very high and that, in turn, translates to more choices along with better loan products and services for the customers. You can also get a rough estimation of the EMI cost using a gold loan calculator and the loan amount you are eligible for.

Minimum Documentation & Maximum Trust

Since the borrower is pledging their gold against the loan, the lender has no need for extensive documentation. That being said, different lenders have a plethora of schemes and the documents required may vary. Either way, the processing time is often quicker which makes it easier to obtain loans (inclusive of free insurance of your gold).

At Muthoot Finance, there are several gold loan schemes to choose from with easy repayment options, no pre-closure charges, and insurance coverage, among others. Please visit your nearest Muthoot Finance branch to know more about gold loans.

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