Introduction
The gold loan market has been growing rapidly as low-income individuals, and small enterprises continue to be impacted by decreasing revenues.
Compared to the previous year, lenders reported a 45% increase in gold loan outstanding as of December 2021 as customers pledged their gold jewellery for emergency cash.
People do not know when they will bump into something unplanned that would eat up every penny. A gold loan is one of the best options to fulfill their financial needs without burdening the significant interest rates of credit cards and personal loans.
Nowadays, almost everyone buys gold. This precious metal has always been considered a better investment than stocks and bonds, especially if one is afraid of risk.
What are the eligibility criteria for getting a gold loan?
The eligibility conditions for gold loans will differ depending on the lender.
A person needs to meet the following requirements to be considered for a Muthoot FinCorp Gold Loan:
- A gold loan can be applied for by any resident Indian citizen, whether they are salaried, self-employed, business owners, traders, or farmers.
- Gold loans can be applied for by any Indian citizen aged 18 and 65.
- Individuals seeking a gold loan must provide gold with a purity of 18-24 karat.
- Individuals can borrow up to 75% of the value of their gold with a Muthoot FinCorp gold loan.
- Lenders will assess the gold items before determining the loan amount. An individual can take out a maximum loan of Rs. 50 lakhs.
Obtaining a Muthoot FinCorp Gold Loan is relatively simple and painless, as the process is streamlined and minimal documentation is required.
To obtain a gold loan, an applicant must provide the following documentation:
Submit any of the following papers to prove identity:
Any legitimate government-issued Photo ID proof, such as a driver’s licence, a PAN card, passport, Aadhar card, or voter’s ID card.
Submit any of the following documents as evidence of address:
Utility bills such as electricity or water bills, Aadhar cards, voter’s cards, bank statements, or rent agreements.
How can one obtain a gold loan?
Getting a gold loan through Muthoot FinCorp is simple, and the gold loan interest rate is affordable. The desired gold loan is executed within 30 minutes after submitting the relevant documents.
Until the loan is returned in full, the gold offered as security is stored in secure and safe vaults. The gold will be transferred once borrowers have paid the debt.
The procedure for obtaining a gold loan is as follows:
- Applicants need to download the Muthoot Blue app or visit their website and then input the basic information and details of the gold they wish to pledge.
- The weight and purity of the gold will be used by their gold loan calculator to calculate loan eligibility based on market gold prices.
- Applicants may use the calculator to determine how much their EMIs will be under various schemes for various tenures. It also allows them to choose whether they want to pay in full or in installments to get their pledged gold back.
- After applicants have found a plan that suits their needs, they can submit their information, and one of the lender’s representatives will contact them.
- To conclude the Muthoot gold loan process, walk to one of Muthoot FinCorp’s 3600+ branches across India and choose the closest one. Their executives will guide the applicants to complete the paperwork and evaluate the gold they plan to pledge. The applicant’s gold loan will be executed in a matter of minutes after that.
Conclusion
The Indian financial sector is booming, and the number of people who own gold jewellery has increased. Marriage, schooling, vacations, family requirements, and other financial obligations must all be met.
These restrictions may force a person to seek out a loan to meet their financial obligations. Gold loans are one of the fastest-growing types of loan funding because they come with less interest and better repayment periods.
A gold loan is a loan backed by gold jewellery. In such instances, one can quickly meet their financial obligations without worrying about payback.
Gold loans frequently offer lower interest rates than other loans, making them more appealing to people.
However, before taking out a gold loan, people need to consider their needs and examine the lender to make an informed selection.