gold loan

Any major Indian citizen is eligible to avail a gold loan from us. All they are required to do is provide the required documents along with the gold ornaments.If you wish to apply for a gold loan with us, visit our nearest branch by searching for ‘Muthoot Finance gold loan near me’ on the web.

The only security that is needed from the end of the customer to avail our gold loan is the gold they pledge. There is no requirement for an external/third party guarantor for the same. The loan gets sanctioned against the gold pledged.

There is no minimum tenure of gold loan. However interest is charged for minimum period of 7/15 days depending upon the gold loan scheme chosen.

The maximum tenure is 12 months.

You can pledge any type of gold ornaments/gold jewellery with us. This includes items like rings, necklaces, watches, bracelets, 'Kardahs,' pendants, 'Polki' sets, and more. You can always consult our executives at your nearest Muthoot Finance branch for the exhaustive list.

You can repay your loan on gold at any of our branches by cheque, cash, or debit cards (please note that demand drafts and credit cards are not accepted). You can even repay your loan against gold online by using iMuthoot mobile application or Online Webpay facility. To visit our Online Webpay facility, click here.

The loan can be repaid at any Muthoot Finance branch, no matter the location. The CBS system of Muthoot Finance is implemented in every branch and lets customers repay their loan at any particular branch. But, it is important to note that the final collection of the gold needs to be done from the initial branch where it was pledged.

As for partial repayment, you can pay that along with interest at any of our branches or online on our website.

For instance, if a person has a gold loan of ₹1,00,000.00 for a period of 3 months. The person may come on the 20th day from the loan’s start and pay 20 days interest and an additional ₹10,000.00 (part payment). Then, this additional amount will be fully adjusted from the principal amount and from the 21st day the interest will be charged on ₹90,000.00.

You will receive back the gold which you pledge with Muthoot Finance after you repay the loan and the complete amount. If you fail to repay the loan, then Muthoot Finance Ltd will reluctantly auction off the same. The borrowers will receive periodical reminders for payment of overdue interest and after the tenure of the loan, a final Notice before the auction.

Another important thing to know about the gold loan offered by us is that the pledged gold is required to be collected from the branch where it was initially pledged as well as stored.

The minimum amount of the gold loan range by Muthoot Finance is ₹1500.

At Muthoot Finance, we are well aware of the customer’s sentiment attached to the ornaments. Thus, we have put in place specialized safe rooms as well as CCTV cameras for the purpose of round-the-clock surveillance in our every branch. We enter the gold items pledged with Muthoot Finance Ltd. into our systems and every submission is locked away in a packaging that is tamper-proof.

So, you can remain worry free and avail a gold loan in an easy process from Muthoot Finance.

There is no maximum limit on the Muthoot Finance gold loan.

If you wish to apply for a gold loan with us, you can visit any of our branches and talk to a customer care executive. The executive will assist you in filling out a KYC form for Gold Loan and provide you guidance for the process that follows.

This is dependent on the purity of gold in the ornaments and the rate of gold on that date. So, for this, please visit your nearest Muthoot Finance Branch. To locate a branch of Muthoot Finance near you, simply search ‘Muthoot Finance gold loan near me’ on the internet.

You can click here for contact us page or call at 1800 313 1212. You can also voice any concerns that you may have on our Twitter handle and Facebook page.

With us, you can rest assured that only excellent services will be offered. Muthoot Finance offers the best gold loans at lowest interest rates.

You can pay the loan amount before the completion of your loan tenure by paying the interest, without having to pay any foreclosure charges or prepayment penalties.

Muthoot Finance understands the emotional attachment that customers have to their jewellery. As a result, we have installed specialised safe rooms as well as CCTV cameras in each of our branches for round-the-clock surveillance. We enter the gold goods committed with Muthoot Finance Ltd. into our systems, and each submission is stored in tamper-proof packaging. Hence, you may relax and get a gold loan from Muthoot Finance in a simple method.

No, a co-applicant is not required in order to obtain the Muthoot Finance gold loan. In order to proceed with the registration, you must give all of the basic information for the gold loan as specified by the company's terms and conditions. This comprises declarations and commitments made by the borrower and confirmed by him, as well as any additional papers requested by the organisation.

If an individual fails to repay the loan on time, the lender typically initiates a grace period for repaying the loan. If the loan remains outstanding beyond this period, the lender may charge additional penalties or interest. In rare prolonged non-payment cases, the lender can auction the gold pledged to recover the outstanding balance. It is essential to communicate with the lender and discuss options, such as loan restructuring or extension, to avoid default or potential loss of the pledged gold.

The loan-to-value ratio for gold loans varies from lender to lender and depends on prevailing market conditions. It typically ranges from 70% to 90%. The LTV ratio indicates the percentage of the market value of the pledged gold that the lender is willing to loan. Most lenders may adjust this ratio based on specific factors, such as the purity of the gold, risk assessment, and the loan amount. Always check with the lender for their particular LTV policies.

Taking a gold loan directly does not instantly impact your credit score, as it is a secured loan where your gold serves as collateral. The lender does not report repayment behaviour to credit bureaus unless there is a default in the repayment of the loan amount. Paying the loan on time can severely affect your credit score as it reflects negatively on your credit history. Responsible repayment of gold loans can help you improve your credit score by demonstrating good financial management.

Yes. A borrower can renew their gold loan after the initial tenure ends under particular conditions. Renewal typically involves paying off the outstanding principal balance and accruing interest, after which you can extend the loan with the same pledged gold as collateral. Lenders may reassess the gold’s value and adjust terms and conditions based on the prevailing market conditions. It allows you to continue using the same collateral for liquidity without needing to pledge new assets.

Taking a gold loan does not have direct income tax implications since it is a loan against a physical asset, gold. Interest paid on the loan is not eligible for tax deductions under standard income tax protocols. However, if you sell the gold to repay the loan and generate a profit, you may be subject to capital gains tax depending on the holding period and applicable tax laws. Consult with a tax advisor as a necessary step for specific guidance tailored to your situation.

An overdraft gold loan functions like a regular credit line where you can withdraw funds up to a pre-approved amount against your pledged gold. Interest is charged only on the amount you withdraw and for its utilised duration. On the other hand, a regular gold loan provides a lump sum amount based on the value of the pledged gold, with fixed repayment periods and interest calculated on the entire loan amount.