Jewel Loan

Not only is gold considered auspicious by Indians but it also carries sentimental value. It is also considered a good investment option. However, in times of urgent financial need, we are hesitant of selling our gold jewellery to meet our needs. Thus, gold loans have become quite popular among customers. The reason customers are opting for gold jewellery loans is that not only does it generate funds for immediate financial needs but also the customer gets his/her ornaments back after the gold jewel loan has been repaid. And Muthoot Finance makes the process of availing a gold loan seamless and hassle-free.

Most Indian homes have gold jewellery that is either self-bought or passed through generations. And this is often kept in lockers for safekeeping. A gold jewel loan is one in which after assessing the gold jewellery loan eligibility of the customer and an in-house evaluation of the gold, jewel loan per gram is calculated. And a lender typically lends a percentage of the gold jewellery value as a loan. Muthoot Finance’s loan against jewellery is a great way to utilize your idle gold to meet short-term financial goals.

Unlike most other loans, a jewel loan can be used both for personal and business requirements. There’s no requirement of a credit history for availing of a jewellery loan. Also, there’s no restriction on the end-use of a loan against jewellery.

When compared to a jewel loan from a bank, customers prefer Muthoot Finance’s jewel loan because of the ease of application and processing of the jewellery loan. Firstly, after a customer has decided to avail of a loan against his gold jewellery, he/she needs to find out their jewel loan eligibility. This can easily be done on Muthoot Finance’s online Gold Loan Calculator by putting in some basic details. This online calculator only gives approximate jewellery loan eligibility. The final value of the jewel loan per gram is calculated by the team after a personal visit to the branch.

In addition to this, a customer can also calculate loan eligibility against jewellery on the online Gold Loan calculator. Even this is a directional value. The final loan eligibility for the gold jewel loan will be generated after assessing jewel loan per gram eligibility and including service charges etc.

Muthoot Finance’s loans against gold jewellery processes are quite seamless. Minimal documentation, low gold jewel loan interest rates, quick disbursal of jewellery loans, safe- keeping of pledged ornaments and good customer service make it quite attractive.

The loan against gold jewellery that would be finally disbursed to you depends upon twomain factors:

Gold Jewellery Loan Eligibility: The main criterion that decides your loan against jewellery eligibility is the weight of the gold and the purity of the pledged gold. Muthoot Finance’s online jewel loan calculator gives an approximate figure of jewel loan eligibility amount, basis a few basic details, type of gold and weight of the ornaments. For a specific calculation, a customer will have to visit a branch where the team shall assist him/her regarding this.

Value of gold per gram for jewel loan: A non-banking financial company (NBFC) lender or banks offering jewel loans will do an in-house gold valuation before arriving at the jewellery loan value. This value of gold per gram for a jewel loan will depend upon the purity of the gold (18, 20, 22, 24 carats) as well as the rate of gold on that particular day. Typically, a lender shall extend a percentage of this Value of gold per gram for a jewel\ loan. You can pledge any type of gold ornaments/gold jewellery for a jewel loan from Muthoot Finance. This includes most gold jewellery items, both with and without stones.

Once the customer has successfully repaid all his/her dues on the gold jewellery loan, he/she can take back the gold articles pledged for the jewel loan after completing a few formalities. The loan against jewellery payments can be made at any Muthoot Finance branch, owing to its CBS system. However, it is important to know that the customer shall receive his/her pledged gold articles only from the initial branch where it was pledged and stored.

Repaying your gold jewellery loan from Muthoot Finance is quite convenient. You may either do it at any of their branches, pay through debit cards, cheques, etc (credit cards and demand drafts are not accepted), or simply pay online through their mobile application- iMuthoot. Partial repayment options for some loans against gold jewellery schemes are also available.

The gold jewellery against which the loan has been sanctioned is carefully detailed and entered into the computerized system. The gold jewellery loan items are put in tamper- proof packets in specialized safe rooms, under round-the-clock CCTV camera surveillance. 

Once the loan against gold jewellery has been sanctioned and disbursed, a customer is expected to make full and timely repayment of dues or as per the payment schedule applicable to the loan applied for. Failure of paying the dues of the gold jewellery loan constitutes a default. If a customer pays the Interest past the due date, a nominal late fee might be applicable. However, if the dues for the Gold loan is not paid for an extended period, a notice is sent for payment. 3 such ordinary notices are sent for loan against jewellery and the 4th notice is sent via registered post.

The borrower will receive periodical reminders for payment of overdue interest and after the tenure of the loan, a Final Notice is sent. If no action is taken by the customer even after serving 4 notices, a final gold jewellery auction notice is sent. This means that Muthoot Finance is now free to auction the gold jewellery pledged with them as the customer has defaulted on its interest payments to recover the loan. It should be noted that the charges for the 4 notices for Gold loan Interest payments and final notice for the gold jewellery auction are borne by the customer.

Muthoot Finance is the pioneer when it comes to offering gold jewellery loans. We have several loan against jewellery schemes with attractive interest rates and repayment options to customers who wish to derive maximum value out from their gold jewellery.

For more information on all their products, schemes, and services, visit
https://www.muthootfinance.com/gold-loan