As the world is recovering from the economic and emotional breakdowns of the coronavirus pandemic, people are looking for multiple debt generation options to sustain themselves financially.
Among the various ways in which one can arrange funds, taking a loan against gold stands out with its unique repayment flexibility, ease of loan process, and low-interest rates.
You can get a lump-sum loan amount by pledging your gold valuables as collateral for a low-interest rate where the loan amount is a percentage of the value of the gold you pledge.
With a reliable lender like Muthoot FinCorp, customers can get a high loan to value of up to 75% of their gold’s value.
What’s more, is that the gold loan interest rates at Muthoot FinCorp start at as low as only 11.99%, which is much lower than other debt options like personal loans and credit card loans.
Here is everything you should know about gold loans including their eligibility criteria and lists of documents required.
Gold Loan Eligibility Muthoot FinCorp
The eligibility criteria of a gold loan are relatively relaxed, compared to other loans. Since gold loans are secured loans, the lenders are more flexible and confident while offering a loan to a customer, hence the eligibility requirements are also limited. Muthoot Fincorp provides gold loans for easy eligibility criteria which are as follows:
- Age: The minimum to maximum age to apply for a Muthoot FinCorp gold loan is 18 – 65 years.
- Loan amount: The maximum loan amount a customer can get from Muthoot FinCorp against his gold is Rs. 50 lakhs.
- Purity of gold: The gold a customer pledges as collateral for a gold loan should have a purity level of 18 to 24 karat. The higher the purity, the higher its value, and the higher the loan amount it can fetch.
- Loan to Value ratio: The loan to value (LTV) is the amount of money a borrower can get against his gold valuables. With Muthoot FinCorp, customers can get up to 75% of the value of the pledged gold as a loan.
The gold loan eligibility from Muthoot FinCorp is customer-friendly. Muthoot FinCorp offers gold loans under various schemes to customers and the eligibility criteria may slightly vary for different schemes.
Gold Loan Document List Muthoot FinCorp
The gold loan documentation requirement from Muthoot FinCorp is much simpler than other kinds of loans from various lenders. The borrower is not required to present income proof, ITR return copies, and bank statements which are mandatory documents to get other loans. Hence, customers can easily furnish the required documents quickly and conveniently to fasten the loan process. The documents required for a gold loan from Muthoot FinCorp are as follows:
- Proof of Identity: The loan applicant needs to submit a proof of identity to the lender which may be a PAN card, passport, driving license, Aadhar Card, or Voter’s ID card of the loan applicant.
- Proof of Address: The loan applicant has to submit an address proof, which may be a rent agreement, bank statement, utility bill, Aadhar Card, or Voter’s ID card of the loan applicant.
Benefits of a Gold Loan:
- Muthoot FinCorp does not ask for the CIBIL score or the credit history of the loan applicant. Thus, an individual who does not have a high credit score or a good credit history can avail of a gold loan easily.
- Gold loan interest rates are very low, compared to other loans. With Muthoot FinCorp, gold loan interest rates start at only 11.99% under different gold loan schemes.
- Gold loans have a quick approval process and require less paperwork. It can be extremely useful for customers who need urgent funds and cannot afford to waste time on lengthy approval processes.
- Usually, lenders charge a hefty processing fee on a loan which adds to the loan’s cost for the customer. Muthoot FinCorp charges a nominal processing fee on gold loans which starts at only Rs. 20, including GST, under some gold loan schemes.
Gold loans have several unique features that attract customers. Muthoot FinCorp customers do not need to pay any foreclosure charges after three months if they want to repay their loan before its due date. Muthoot FinCorp gold loans have transparent processing, and the customer’s gold valuables are kept safely until the loan is repaid.