Top-Up Gold Loans: Instant Loan Processing

The popularity of gold loans in India has led to tough competition for financial institutions. Its popularity could be due to lower interest rates, quick disbursal and more. Loans are a versatile financial tool which allows you to obtain funds for emergency purposes and long-term & short-term needs. We go through different phases of life and the need to address our plans change.

Table of Content

• Advantages of Top-up Gold Loans
• Features of Top-up gold loans

A top-up loan is a kind of loan one takes over and above an already existing loan. The existing loan could be a home loan, a personal loan or a gold loan. Lenders are not obliged to offer a top-up loan to their existing customers. This could be provided based on your repayment history and overall credit records.

Top-up loans are ideal in situations where you need additional funds while repaying your existing loan. It is a golden opportunity for individuals who want additional funds despite their existing gold loan. Like any other loan, the underlying purpose of a top-up loan is to secure financing. This blog gives you an overview of top-up gold loans and everything else you need to know.

Advantages of Top-up Gold Loans

Type of Lender

Unlike fresh loans, which are either borrowed from a new lender or taking a new type of loan from the same lender. You can avail of a top-up loan with gold either from a new or existing lender.

Documentation

Top-up loans are availed above an already existing loan, like a personal loan, a gold loan or a home loan. The need for documentation is the bare minimum due to the existing relationship with the lender for the gold loan verification.

Eligibility

A top-up loan is an add-on facility given to existing customers at the discretion of the lender. It is not offered to all existing customers and neither the lender is obliged to. Based on your repayment history and the worth of your gold, lenders may consider your request. You can also use the online gold loan calculator to know the amount you are eligible for.

Credibility

Good credit history and the solid repayment track record of the existing loan make you credible enough to avail of a top-up loan.

Turn Around Time of the Lender

The turn-around time is lesser compared to fresh loans owing to the existing relationship with the borrower.

Multiple Loans

This has to be one of the best advantages of top-up loans because it allows you to take multiple loans upon one active loan without the loan application.

Features of Top-up gold loans

Lower Interest Rate

Lenders compete with each other in terms of providing the lowest interest rate on gold loans so that they do not lose loyal customers. The competition is often high due to the popularity of gold loans in India.

Maximum value of Gold Loan

This is another feature that serves the customers at its best and distinguishes lenders from each other, in terms of who can provide the highest gold loan per gram.

Quick Processing

The processing time is quick because there is no need to verify documents or a thorough background check.

Pan India Presence

Due to the popularity of gold loans, most lenders offer top-up loans all across India.

Hassle-Free Documentation

There is no need for documentation due to the existing relationship with the lender.

Short Tenure

The tenure is often short as it is a type of loan that is over or above an already existing loan.

One of the best advantages of a top-up loan is that you can take multiple loans upon one active loan without the need for a new loan application. The features and advantages of top-up loans distinguish the lenders from each other. By all means, the borrowers are on the upper hand because the competition compels lenders to provide the best.

Muthoot Finance has the largest Gold Loan Portfolio in India among NBFCs, offering products like gold loans, personal loans, business loans, and more. Visit your nearest Muthoot Finance branch to get more details.