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Gold Loan Interest Rate
Gold as an asset class has been used by Indians for centuries for preparing for eventualities. However, selling gold jewellery to meet financial needs does not come easily to us. That said, gold loans are the perfect way to capitalise unused gold jewellery for immediate funding for a variety of needs.
The conventional loans offered by banks and other financial institutions are quite time- consuming and the process is long. Gold loans from Muthoot Finance can be availed with minimum documentation and assure quick disbursals It offers the best gold loan interest rates on its various gold loan schemes. Its interest rate on gold loans is among the lowest and this attractive gold loan interest rate helps customers to fulfil short-term financial obligations.
Gold Loan Interest Rates
Muthoot Finance offers its customers a wide portfolio of gold loans with different interest rates. Any kind of loan i composed of two components: principal and interest. Similarly, a gold loan is considered fully repaid only when both the components have been paid off, ie, the principal and the gold loan interest. Thus, while availing of a gold loan too, you must opt for a lender that offers gold loans with the lowest interest rate. This decision is important so that you don’t end up paying surplus money to service the gold loan interest. Gold loans offered by Muthoot Finance aren’t only quite convenient to avail but also offer the lowest interest rates on gold loans. When a comparison is made between the gold loan interest rate of all banks with Muthoot Finance, their interest rates on gold loans are the most attractive.
Interest Rates on Different Gold Loans
Once you have decided to take out a gold loan, you should be clear about your financia requirement, the tenure you are willing to serve, and the gold loan interest you are comfortable with. Depending upon all these factors, you can choose from the several gold loan schemes with different gold loan interest rates offered by Muthoot Finance. For more information on the loan schemes offered by Muthoot Finance and the applicable gold loan interest rates, please check the gold loan page on the website or visit the nearest branch.
In addition to a variety of gold loan options and low gold loan interest rates, Muthoot Finance also offers attractive rebates on Gold Loan schemes and repayments. For instance, rebates are offered on monthly and quarterly gold loan interest payments.
Calculation of Gold Loan Interest Rate
For the ease of its customers, Muthoot Finance has many tools to help navigate the process of availing a gold loan. One of them is the online Gold EMI Calculator. Customers interested in a gold loan from Muthoot Finance can simply go to their website and by using the online Gold Loan Calculator, they can get their loan eligibility. All you are required to do is enter details such as name, email-id, contact number, gold type, the amount you require, and few other details. It should be noted that the online loan eligibility is an approximate value and the exact loan eligibility is calculated after an in-house gold evaluation at the branch.
After a customer knows his/her loan eligibility, he/she can use the online Gold Loan EMI Calculator to calculate EMI as well. Again, the online EMI value is an approximate value that depends upon the interest rate of the gold loan scheme and the tenure you have chosen. Customers will be delighted to know that when compared to the gold loan interest rate offered by all banks, Muthoot Finance’s gold interest rate in India is among the lowest. The best gold loan interest rates and exceptional customer service have made Muthoot Finance’s loan against gold interest rate a deciding factor for its customers. To sum it up, the interest rate of the gold loan depends upon the type of loan scheme availed and its tenure. And this knowledge of gold loan interest is crucial because it directly affects the EMI of your loan. Thus, a low interest gold loan can reduce your repayment costs to a great extent.
Types of Gold Loan Interest Rates
You can choose the best gold loan interest rate at Muthoot Finance, based on the gold loan scheme you opt for. The interest rate on gold loan schemes can be broadly divided into two types – fixed and floating rates of interest.
- Fixed Rate of Interest: The loan against gold interest rate that is offered to the borrower remains constant throughout the loan tenure when they opt for the fixed rate of interest.
- Floating Rate of Interest: Fluctuations in the current market value of gold will have a direct impact on the loan against gold interest rate applicable. The interest rate may go lower or higher, depending on the market fluctuations. So, you may be able to get the lowest interest on your gold loan or you may end up paying a higher interest.
Additional Charges
Interest on the gold loan isn’t the only thing that has to be serviced by the customer. There are additional charges that have to be borne by the customer and are listed on their website. Apart from offering among the lowest gold loan interest rates among its contemporaries, Muthoot Finance’s service charges are also quite nominal. Thus, with the best gold loan interest rates coupled with a customer-centric focus, Muthoot Finance offers gold loan interest rates that are quite attractive.
The success and popularity of Muthoot Finance are built on a solid foundation of trust, transparency, and keeping customers first. We continuously come up with customer- friendly initiatives and tools for their patrons to make an informed decision. It is not only about offering the lowest gold loan interest rates but also being transparent in our dealings. All information regarding the interest rates on their gold loans, loan eligibility and EMI calculator tools, FAQs as well as the schedule of charges are available on our website.
GOLD LOAN SCHEMES
MUTHOOT
ONE PERCENT LOAN
- Small loans at low interest rates.
- Loan Amount: ₹1,500 to ₹50,000
- Online Gold Loan (OGL) facility available
- Loan Amount: ₹1,500 to ₹50,000
- Tenure: 12 months
- Free insurance for pledged gold ornaments
- Scheme with the lowest rate of interest (12% p.a.) if 100% interest is paid monthly
MUTHOOT
ULTIMATE LOAN (MUL)
- Maximum loan value and discounts on timely interest payments.
- Loan Amount: Starting at ₹1,500
- Online Gold Loan (OGL) facility available
- Loan starting from ₹1,500 and no maximum limit
- Tenure: 12 months
- Free insurance for pledged gold ornaments
- Rate of interest is 22% p.a. with 2% rebate if 100% interest is paid monthly
MUTHOOT
DELIGHT LOAN
- Loan Amount: ₹50,000 to ₹5 crores
- Tenure: 12 months
- Online Gold Loan (OGL) facility available
- Loan Amount: ₹50,000 to ₹5 crores
- Tenure: 12 months
- Free insurance for pledged gold ornaments
- Low rates of interest
MUTHOOT
MUDRA LOAN
- Special loan scheme for women that’s available at South India branches.
- Loan Amount: ₹1,500 to ₹1 lakhs
- Offered at South India branches only
- Loan Amount: ₹1,500 to ₹1 lakhs
- Highly discounted rate of 11.9% p.a.
MUTHOOT
ADVANTAGE LOAN
- Competitive per gram and interest rates.
- Loan Amount: ₹50,000 to ₹5 Crores
- Online Gold Loan (OGL) facility available
- Offered at branches in South India
- Loan Amount: ₹50,000 to ₹5 Crores
- Tenure: 12 months
- Free insurance for pledged ornaments
- Attractive interest rate of 18% p.a.
MUTHOOT HIGH VALUE
PLUS LOAN (MHP)
- Loans curated for the business community.
- Loan Amount: ₹1,90,000 to ₹5 crores
- Online Gold Loan (OGL) facility available
- Loan Amount: ₹1,90,000 to ₹5 crores
- Tenure: 12 months
- Free insurance for pledged gold ornaments
- Interest rates as low as 14% p.a.
- Maximum Loan Value offered
MUTHOOT
HIGH VALUE LOAN (MHL)
- Loans which are ideal for longer periods.
- Loan starting from ₹50,000 and no maximum limit
- Online Gold Loan (OGL) facility available
- Loan starting from ₹50,000 and no maximum limit
- Tenure: 12 months
- Free insurance for pledged ornaments
- Interest rate as on date as low as 15% p.a.
- Maximum Loan Value offered
- Offered at branches in South India
MUTHOOT BIG BUSINESS LOANS
- Low rates of interest with maximum LTV
- Tenure: 12 months
- Low rates of interest with maximum LTV
- Tenure: 12 months
- Free insurance for pledged gold ornaments
- Online Gold Loan (OGL) facility available
- Loan Amount: ₹5 Lakhs to ₹500 lakhs as per Schemes
- Muthoot Big Business Loan Silver @12.9% p.a.
- Muthoot Big Business Loan Platinum @11.9% p.a.
- Muthoot Big Business Loan Diamond @10.9% p.a.
- Muthoot Big Business Loan Elite@ 10.5% p.a.
BEST VALUE SCHEME (BVS)
- Offered at South India branches only
- Loan Amount: ₹50,000 to ₹5 Crores
- Offered at South India branches only
- Loan Amount: ₹50,000 to ₹5 Crores
- Highly discounted rate of 14% p.a.
- Tenure: 12 months
- Free insurance for pledged ornaments
HIGH VALUE RETENTION (HVR)
- Offered at South India branches only
- Loan Amount: ₹10 Lakh to ₹5 crores
- Offered at South India branches only
- Loan Amount: ₹10 Lakh to ₹5 crores
- Lowest interest rate of 10.9% p.a.
- Tenure: 12 months
- Free insurance for pledged ornaments
MUTHOOT
ONE PERCENT LOAN
- Small loans at low interest rates.
- Loan Amount: ₹1,500 to ₹50,000
MUTHOOT
ULTIMATE LOAN (MUL)
- Maximum loan value and discounts on timely interest payments.
- Loan Amount: Starting at ₹1,500
MUTHOOT
MUDRA LOAN
- Special loan scheme for women that’s available at South India branches.
- Loan Amount: ₹1,500 to ₹1 lakhs
MUTHOOT
ADVANTAGE LOAN
- Competitive per gram and interest rates.
- Loan Amount: ₹50,000 to ₹5 Crores
MUTHOOT HIGH VALUE
PLUS LOAN (MHP)
- Loans curated for the business community.
- Loan Amount: ₹1,90,000 to ₹5 crores
MUTHOOT
HIGH VALUE LOAN (MHL)
- Loans which are ideal for longer periods.
- Loan starting from ₹50,000 and no maximum limit
BEST VALUE SCHEME (BVS)
- Offered at South India branches only
- Loan Amount: ₹50,000 to ₹5 Crores
HIGH VALUE RETENTION (HVR)
- Offered at South India branches only
- Loan Amount: ₹10 Lakh to ₹5 crores
-
GOLD LOAN SCHEMES
Avail the best interest rates and quick loan disbursals with Muthoot Finance.
Get More Details
Service Charges relating to Gold Loan
SL No. | Type of Charges | Corporate | Rate of charges applicable | ||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|
1 | Service charges -Fresh loan- Rate applicable on loan amount(IPL) |
Southern Branches |
IPL (1%) (For 12 months period only) | ||||||||||
2 | Service charges -Fresh loan- Rate applicable per account (ZIL/ZIP) |
ALL |
ZIL/ZIP-Rs.50/loan | ||||||||||
3 | Service charges on fresh loan under MEI scheme |
ALL |
0.60% of loan amount | ||||||||||
4 | Top-up services charges - Rate applicable on enhnaced amount |
All |
2% of enhanced amount (For GL schemes having 1st slab ROI <15% with rebate facility) | ||||||||||
5 | Security charges- Fresh loan |
Rest of India |
0.15% of loan amount- Minimum Rs.100/- and Maximum Rs.1,000/- | ||||||||||
6 | Token charges- (For schemes except given in Sl no.1, 2, 10 & 11 |
Southern Branches |
Loan up to Rs.1,00,000/- --> Rs.20/-
Above Rs.1,00,000/- --> Rs.100/- Where 1st slab interest rate is <13% after rebate, other cases Rs.50/- |
||||||||||
7 | SMS charges | ALL | Rs.5/per quarter at the time of closure or renewal | ||||||||||
8 | Notice Charges (Applicable for loans under all schemes) |
Southern Branches
Rest of India |
3 ordinary notice Rs.30/each and 4th notice-RegisteredRs.100/-
3 ordinary notice Rs.30/each and 4th notice-RegisteredRs.100/- Auction Notice charges Rs.120/- |
||||||||||
9 | Token lost charges (Applicable for loans under all schemes) |
ALL |
Rs.25/-(in addition to cost of stamp paper applicable) | ||||||||||
10 | Safe Custody Charges |
ALL |
Rs.5/per gram per month, payable at the time of closure or renewal |
||||||||||
11 | Stamp duty levied by State Governments |
States:- Karnataka , Andhra and Rajasthan |
Actuals where ever applicable |
||||||||||
12 | GCS |
Southern Branches |
1.Rs.999/- per 6 months (in case the limit is not used over a period of 6 months) 2.If the transaction is through branches then Rs.99/- per transaction |
||||||||||
13 | GCL |
Rest of India |
1.Rs.999/- per 6 months (in case the limit is not used over a period of 6 months) 2.Part release charges of Rs.499/- per transaction 3.If the transaction is through branches then Rs.99/- per transaction |
||||||||||
14 | Loan @ Home charges |
ALL |
Upto Rs.500/- for loan @ home services |
||||||||||
15 | CAC (Credit Appraisal Charges) – If total exposure > Rs.3 L |
Southern Branches |
|
||||||||||
16 | Door to Door collection charges (Follow up for interest / loan recovery) |
Southern Branches |
Rs.150/- plus GST per customer for recovery made through customer follow up visit |
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NORTH, EAST & WEST INDIA TOLL-FREE NO.:
1800 313 1212
SOUTH INDIA CALL CENTER NO.:
99469 01212
WRITE TO US:
mails@muthootgroup.com
BRANCH TIMINGS:
Mon-Sat, 9:30 AM to 6 PM
Refer a Friend*
Refer a friend & get a Chance to
Win Exciting Muthoot Finance Merchandise
Ask an Expert
NORTH, EAST & WEST INDIA TOLL-FREE NO.:
1800 313 1212
SOUTH INDIA CALL CENTER NO.:
99469 01212
WRITE TO US:
mails@muthootgroup.com
BRANCH TIMINGS:
Mon-Sat, 9:30 AM to 6 PM
Gold Loan Interest Rate FAQs
At Muthoot Finance, you can get the lowest interest rate on gold loans and the minimum loan amount that can be availed is INR 1,500. Simply choose from the several gold loan schemes available on the website depending on the loan amount and tenure of the loan.
The repo rate is directly proportional to the floating rate of the gold loans. If there is a cut in the repo rate, the Muthoot Finance gold loan interest rate also gets lower down. If the gold loan amount is offered at a fixed rate, the repo rate does not affect the gold loan rate of interest at Muthoot Finance.
Muthoot Finance offers the gold loan at the best interest rates. The applicant does not only have to pay the interest on the gold loan but there are additional service charges that have to be paid by the customer.
Apart from the best gold loan interest rates, the additional charges are very nominal and are listed on the Muthoot Finance website.
At Muthoot Finance, all gold loan repayments are inclusive of interest rates. The minimum gold loan amount that an applicant can get from Muthoot finance is INR 1,500 without any maximum limit.
Muthoot Finance offers the Rural Gold Loan for farmers to provide financial assistance to people in the rural areas. The interest rate for this gold loan depends on the value and purity of the gold pledged with the bank. Applicants can avail attractive interest rates by visiting the Muthoot Finance website or going to the nearest Muthoot Finance branch.
Muthoot Finance has many tools to navigate its customers in the process of availing of a gold loan. An applicant can use the online gold loan rate calculator on the Muthoot Finance website to give an approximate value of the interest rate. The online EMI value depends upon the interest rate and the tenure of the gold loan the applicant has chosen.
The gold loan interest rate at Muthoot Finance is dictated by several factors, such as the loan amount, loan tenure, loan required, and the value of the gold you can pledge with the bank. To check the current gold loan interest rate visit the Muthoot Finance website or rush to the nearest branch.
The interest rate of the gold loan depends upon the type of loan scheme availed and its tenure.
Interest is compounded monthly at the applicable rate for each slab. Loan tenure is 12 months for a normal Gold Loan scheme. Minimum Interest Rate starting from 9% p.a. if interest is serviced monthly.
The interest rate on gold loans on a lot of factors like Repo Rate. If there is a cut in the repo rate, the Muthoot Finance gold loan interest rate also gets lower down. If the gold loan amount is offered at a fixed rate, the repo rate does not affect the gold loan rate at Muthoot Finance.
Minimum loan amount of Rs 1,500/- and Maximum loan amount upto Rs.5 Crore.
A gold loan does not have a minimum CIBIL score requirement. The security of your collateral and its quality are significantly more important in achieving quick approval because this is a secured loan. Those who need money but have bad credit can get help from a gold loan.
The bank or lender can charge penalties for late payment of EMIs depending on the amount from the due date of the loan repayment.
Interest rates charged on gold loans are determined based on prevailing market conditions, LTV ratio, loan tenure, and the lender’s risk assessment. Due to the collateral involved, interest rates on gold loans are generally lower than those of other unsecured loans. When determining interest rates, lenders may also consider the borrower’s credit history and loan amount. Hence, it is advisable to compare the interest rates of different lenders before applying for a gold loan.
Gold loan interest rates are typically fixed rather than variable. This means that the interest rate remains constant throughout the loan tenure, providing borrowers with predictability in their repayments. The lenders determine fixed interest rates at the time of loan approval and remain unchanged unless explicitly modified by the lender according to their policies. This stability simplifies financial planning for borrowers, as they can anticipate and budget for consistent repayments without worrying about fluctuations in interest rates.
The interest on gold loan is influenced by several factors, such as the LTV ratio, the purity and quality of the pledged gold, market conditions, and the borrower’s creditworthiness. These key factors collectively determine the interest rate a borrower may be offered for a gold loan, varying between lenders and over time.
Yes. Gold loan interest rates can vary depending on the amount borrowed. Lenders may offer tiered interest rates where more significant loan amounts could qualify for lower interest rates due to economies of scale or preferential pricing. This practice encourages borrowers to consider higher loan amounts and allows lenders to manage risk more effectively. However, the specific amount and rate tiers can vary between lenders. Hence, it is essential to inquire about rate structures when exploring gold loan options.
Yes. Gold loan interest rates often come with additional charges, such as processing fees, documentation charges, appraisal fees, etc. Late payment fees may also apply if you fail to pay the repayment on time. It is crucial to review the terms and conditions of your lender, as these additional charges may vary from lender to lender. Understanding all associated charges can help you ensure transparency and avoid unexpected expenses.
The repayment options you get with gold loans are flexible, catering to different financial needs. One repayment option is regular EMI, where you pay both the principal and interest in regular monthly instalments. Another option is interest-only payments, where you spend the interest amount periodically. Bullet repayment is another option where you pay principal and interest in a single lump sum at the end of the tenure. When applying for a gold loan, choose the best repayment option for your financial situation.
Yes. A borrower’s credit score impacts the offered interest rate on a gold loan. The lowest interest on gold loan schemes will be offered to borrowers with high credit scores, as a high credit score shows that one is a responsible borrower. This not only allows borrowers to get the best gold loan interest rate but also better loan terms.
There are several ways for you to avail yourself of the lowest interest rate on gold loan schemes. Check your credit score and improve it, if required. Explore different gold loan schemes as the loan against gold interest rate varies from one scheme to another. You can also consider opting for a shorter loan tenure for a lower interest rate on your gold loan.
Yes. Farmers are eligible for some of the lowest interest rates on gold loan schemes, especially if they plan to use the borrowed funds for agriculture-related requirements. The loan amount can be used to fund farming-related activities, like agriculture infrastructure. Farmers can get rebates of 1-2%, resulting in some of the lowest interest rates on gold loan schemes.
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