Trends and Factors Affecting Muthoot Finance Gold Loan Interest Rates

Gold loans by Muthoot Finance are popular throughout India. People from rural and urban areas, both prefer this NBFC, because it has a great repute in the lending sector. Muthoot is one of the first providers of loans against gold in the country, and have improved over time. It now allows the borrowers to access gold loan service online and even make the payments via the internet application. The interest rates have also changed over the years, given change in demand, RBI guidelines, gold’s value, and other factors. To understand more about Muthoot Finance gold loan interest rates, one has to go through the following details.


Muthoot Finance Gold Loan

Gold Loan Loan against Gold Details
Interest Rate 12 percent onwards
Processing Fee Fee is 0.25% to 1% of the total loan amount
Loan Tenure Period ranges from 7 days to 36 months
Loan Amount Amount ranges from Rs. 1,500 to Rs. 1 crore
Prepayment Charges There are no charges
Repayment Scheme Bullet repayment and EMI scheme

Muthoot Interest Rate for Gold Loan

Loan against gold is obtained by pledging gold jewellery with Muthoot Finance, which allows customers to use the amount for n-number of expenses. The asset submitted to the NBFC acts as security. Below mentioned are some of the facts about gold loan interest rate.

  • The NBFC offers flexible loan amount and the interest rate is adjusted as per the gold weight, purity, customer profile, and other factors. Usually, Muthoot applies a fixed rate on loan.
  • It provides a rebate on interest payments to people if they are regular about EMI payments.
  • The financial institution does not demand prepayment and foreclosure charges from customers.

How to Get Best Muthoot Gold Loan Rate?

For a gold loan, a person’s credit history is not the necessary eligibility factor, unlike in unsecured loans. Muthoot Finance checks the gold weight, type, and purity, to decide the loan amount and interest rate. In case the applicant shares a good relationship with the NBFC, then he has greater chances of securing a lower interest rate. A past record of consistent and timely repayment can help one earn discounts on the interest rate.

Information about Muthoot Loan against Gold

Below provided are factors that will help you know more about jewel loan by Muthoot.

  • Purpose of Loan: The funds can be used for any purpose one may want apart from illegal and speculative purposes. People use it for travel, wedding, medical care, education, home repair etc.
  • Eligible Candidates: Muthoot can provide gold loan to those who are 18 years and above in age. The applicants can be student, pensioner, self-employed or salaried individual, professional, or even a housewife.
  • Type of Gold: The asset should be between 18 carat and 24 carat. Only gold jewellery and coins (purchased from reputed bank) are acceptable. The ornaments must be at least 15 grams and gold coins not more than 50 grams.
  • EMI Calculation: At 12 percent rate, the lowest EMI per lakh is Rs. 3,321 on term of 36 months.
  • Security: The applicant must submit the gold pledged with Muthoot and that shall serve as collateral for the funds. The asset will be returned on completion of repayments.
  • Documents to Submit: The applicant must submit basic KYC documents. Aadhar card and PAN card are mandatory. No need to submit employee code, salary slip, bank statement, etc.
  • Credit Score: Credit history or score of the person is not usually checked when sanctioning the loan. But the loan amount may differ as per the gold and the financial profile of the customer.

How to Compare Gold Loan Interest Rates Muthoot?

There are various gold loan schemes offered by Muthoot and each has different interest rates. A person can enquire about the rates by submitting query on the official website of the NBFC. The person can even call up the customer care team or drop an email regarding the scheme. For availing better interest rate, one can enquire about the discounts for specific purpose. For instance, agriculturists are eligible for discount up to 1 to 2 percent on the loan, so as women. Agriculturists have to also submit the proof of the farming work to the NBFC.

Muthoot Loan against Gold Interest Rate Calculator

Here is a list of factors that influence the rate of interest of gold loan Muthoot.

  • Loan Tenure: Banks and NBFCs ask for a higher rate of interest on loans with a shorter tenure than longer. Thus, a longer tenure loan will cost more than shorter tenure one at same interest rate, and vice versa. However, sometimes people prefer a longer tenure, thus, selection of a loan scheme based on tenure, is purely subjective.
  • Loan Amount:Muthoot Finance is one of the NBFCs that offers loan of both low and high amount. Rs. 1,500 is the minimum loan amount and maximum is Rs. 1 core. It offers loan per gram. A high loan amount may entail a lower rate of interest than low loan amount, but the credit profile of the customer, along with other factors will influence the rate.
  • Loan to Value Ratio: As per RBI, the financial institutions can fund up to 75 percent of the loan amount. Muthoot Finance too observes these norms, but it may offer LTV or lower value as well. The LTV also depends on gold weight and purity.

The details provided above will help people understand about Muthoot Finance gold loan interest rate and loan scheme. If someone wants to apply for Muthoot gold loan, they should consider the given information and take decision accordingly.