Muthoot Gold Loan Interest Rate

Gold Loans are loans availed by pledging your gold ornaments with a bank. Muthoot gold loan can be taken for meeting urgent personal expenses like children education, marriage and other financial emergencies in the family as well as for business purposes. The gold mortgaged acts as a security to the loan. Taking a loan from Muthoot has the following benefits:

• Muthoot group offers rebate on its interest payments, if EMI is paid regularly.
• You can get jewel loan of small amount starting from Rs. 1,500 with no maximum loan amount limit.
• Muthoot doesn’t charge any foreclosure fees from its gold loan customers.

Muthoot offers the lowest interest rate on loan against gold effective from 26 Mar, 2021. Muthoot has reduced gold loan rates, a drop of 0.01% from the earlier lowest rate of 12.00%. Currently, Muthoot offers the lowest gold loan starting at 11.99%.

If you are planning to take a Loan against Gold from Muthoot, you need to know the following details of its gold loan schemes:

• Purpose of Gold loan: To meet personal and business expense requirements
• Collateral: Loan against security of your gold jewelry
• Type of Gold Accepted: Gold jewelry of up to 50 grams with a purity of 18 to 22 carat
• Customer Segments: Muthoot offers jewel loans to all individuals above 18 years of age including salaried, self-employed professionals, businessmen, students, pensioners and housewives
  Gold Loan
• Gold Loan Features
  • Muthoot Gold Loan Interest Rate starts from 11.99%
  • Muthoot charges a processing fees of 0.25% to 1% of loan amount.
  • Loan Tenure of Gold Loan ranges from 7 days to 36 months
  • Lowest EMI per lakh on Gold Loan from Muthoot is offered at the lowest gold loan interest rate of 11.99% at the longest loan tenure of 36 months
  • Muthoot allows prepayment of jewel loans with Nil charges
• Documents Requirement: Only basic KYC documents for address proof and income proof required. The bank doesn’t require you to submit your income proof or doesn’t check your CIBIL score for approving a gold loan.
  Documents Required for Gold Loan
• Popular Gold Loan Schemes of Muthoot
  • EMI Scheme
  • Bullet Repayment Scheme

Muthoot offers gold loan at affordable interest rates. However, you must analyze multiple banks and their offers before applying for a jewellery loan.

Particulars	Muthoot	SBI	HDFC Bank
Current Interest Rate	11.99% - 11.99%	7.50% - 7.50%	9.50% - 9.50%
Previous Lowest Interest Rate	12.00%	11.99%	11.99%
Lowest Rate Difference	-0.01%▼	-4.49%▼	-2.49%▼
Processing Fees	0.25% to 1% of loan amount.	0.50% of the loan amount, minimum-₹ 500	1% of the loan amount
Loan Tenure	7 days to 36 months	3 months to 36 months	3 months to 24 months
Loan Amount	₹ 1,500 to ₹ 50 Lakh	₹ 20,000 to ₹ 50 Lakh	₹ 25,000 to ₹ 50 Lakh
Foreclosure Charges	Nil	Nil	1%
Repayment Options	Y	Y	Y
Lowest EMI Per Lakh	₹ 3,321 per lakh	₹ 3,111 per lakh	₹ 4,591 per lakh

You can apply for a gold loan with Muthoot directly through branch walk-in or by filling an online application form. However, to get the best gold loan rate offers and comparison of all banks, you can apply online through MyLoanCare. MyLoanCare will give you a detailed comparison of gold loan schemes of all banks, calculate your gold loan eligibility and connect you to the best bank for gold loan. Customer representatives of bank will get in touch with you instantly to fix up an appointment for branch visit. You will also be assisted by a dedicated MyLoanCare loan executive who will ensure that the process of getting loan is smooth, convenient and quick. You can get gold loan in a single branch visit during which Muthoot will do an appraisal of your jewellery in terms of its purity and weight. In case, the jewelry meets the bank standards, the bank will sanction your loan and give you an instant loan against the security of your gold jewelry.

Lowest Gold Loan Interest Rate in Muthoot is 11.99%.The factors that are used by Muthoot to calculate interest on gold loan are loan amount, loan tenure and loan required as a percent of value of gold jewelry. Muthoot’s existing account holders get gold loan at best rates compared to other customers.

• Loan Amount: The amount of gold loan you avail depends on the weight of jewelry you can pledge with the bank. Generally, banks offer a jewel loan per gram of gold which differs by the purity of gold and loan to value ratio offered. Banks offer lower interest rates for higher amount. Muthoot offers loan between ₹ 1,500 and ₹ 50 Lakh amount.
• Relationship with the Bank: Muthoot offers special rates, offers and charges to the existing account holders of the bank. Those who have made their payments on time in the past can get the benefit of low gold loan interest rate from Muthoot.
• Loan tenure: Many banks charge higher rate of interest for gold loans of lower tenure and lower interest rate for gold loans of higher tenure. Muthoot offers gold loan with a tenure of 7 days to 36 months.
• Loan to Value ratio: Maximum gold loan to value of gold jewelery ratio on gold jewelry has been fixed at 75% by RBI. However, Muthoot also offers loans at lower LTVs. Interest rate on loans with lower LTV will be lower compared to loans with higher LTV. Maximum LTV offered by Muthoot is 75% calculated on net weight of gold in your jewelry.
• Purpose of Loan: All banks, including Muthoot also offer gold loan for agricultural purposes at low concessional rates, as the same is counted under priority sector lending targets of the bank. Muthoot's gold loan interest rate for agricultural loans is generally lower by 1-2% compared to its gold loan rate for regular customers.

In addition to interest rates, Muthoot also carry some other charges while offering gold loan which include:

• Processing fees – Muthoot charges minimum processing fees 1% of the loan amount. To get lowest fee, gold loan interest rates comparison, offers and cashback apply online through MyLoanCare.
• Prepayment and foreclosure – Banks allows prepayment of gold loan and typically levy prepayment or foreclosure charges i.e. Nil.

The documentation process of Muthoot is smooth. You need to submit one proof of identity and one proof of address to get a gold loan. The list of identity and address proofs is as follows:

• Identity proof: PAN Card, Driving License, Passport, Voter’s ID Card, Aadhar Card
• Address proof: Voter’s ID Card, Aadhar Card, Rent Agreement, Utility Bills, Bank Statement

✅Has Muthoot reduced the interest rate on the gold loan?

Yes, Muthoot has reduced the lowest interest on gold loan as effective from 26 Mar, 2021. Presently, Muthoot offers gold loans starting at 11.99%, which is a decrease of 0.01% from the previous rates of 12.00%.

✅How much gold loan can I avail from Muthoot?

You can get upto ₹ 50 Lakh as gold loan from Muthoot.

✅How can I check my Muthoot gold loan status?

You can log in to your MyLoanCare account, the status of your loan will be shown on the home page of your account. Alternatively, you can also check your gold loan status by logging into the net banking account that received at the time of availing the loan. However, if you are concerned about the loan approval status, then in case of a gold loan, the process of acceptance to disbursal is done within 24 hours.

✅Is gold loan Muthoot available online? Is there a Muthoot gold loan online payment facility?

Yes, you can apply gold loan online in Muthoot to get a quick loan. Yes, Muthoot offers gold loan online payment facility.

✅Are there any prepayment charges on gold loan?

Yes, you can prepay your jewel loan. Applicable prepayment charges - Nil.

✅Does Muthoot offer Agricultural Gold Loan?

No, Muthoot does not offer any special gold loan scheme for agriculture. You will need to avail loan against gold against the bank’s regular gold loan scheme, even if you need it for agricultural purposes.