Muthoot Fincorp Ltd. Gold Loan Interest Rate

Muthoot Fincorp Ltd. gold loan can be availed by pledging your gold ornaments for meeting urgent personal expenses like children's education, marriage and other financial emergencies in family or business. 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 Fincorp Ltd. gold loan interest rate currently starts at 11.99% and goes up to 11.99%. The lowest interest was decreased by 0.01% on 21 Jun, 2021. You can avail jewellery loans for any purpose for a maximum tenure of 36 months. Muthoot Fincorp Ltd. offers a gold loan at the cheapest rates as it is a secured loan and has multiple repayment options like the gold loan EMI Scheme, Bullet Repayment Scheme.

• Purpose of Gold loan: To meet personal and business expense requirements
• Collateral: Loan against security of your gold jewellery
• Type of Gold Accepted: Gold jewellery of up to 50 grams with a purity of 18 to 22 carat
• Customer Segments: Muthoot Fincorp Ltd. offers jewel loans to all individuals above 18 years of age, including salaried, self-employed professionals, businessmen, students, pensioners and housewives
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• Gold Loan Features
  • Muthoot Fincorp Ltd. gold loan interest rates starts from 11.99%
  • Muthoot charges a processing fee of 0.25% to 1% of loan amount.
  • Loan Tenure of Gold Loan ranges from 7 days to 36 months
  • The lowest EMI per lakh on Gold Loan from Muthoot is offered at the lowest gold loan interest rate and at the longest loan tenure.
  • Muthoot Fincorp Ltd. allows prepayment of jewel loans with Nil charges

The documentation process of Muthoot is smooth. You need to submit one proof of identity and one proof of address to get a Muthoot 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

Gold loan interest rates in Muthoot are very affordable. 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%	7.00% - 7.50%	9.00% - 15.00%
Previous Lowest Interest Rate	12.00%	11.99%	11.99%
Lowest Rate Difference	-0.01%▼	-4.99%▼	-2.99%▼
Processing Fees	0.25% to 1% of loan amount.	0.50% of the loan amount, minimum-₹ 500	0.20% of 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 ₹ 10 Lakh
Foreclosure Charges	Nil	Nil	Zero prepayment charges post 6 months
Repayment Options	Y	Y	Y
Lowest EMI Per Lakh	₹ 3,321 per lakh	₹ 3,088 per lakh	₹ 4,568 per lakh

You can apply for a gold loan with Muthoot directly through branch walk-in or by filling an online application form.

• 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 the bank will instantly contact you to fix up an appointment for a branch visit.
• Further, you will also be assisted by a dedicated MyLoanCare loan executive who will ensure that the process of getting a loan is smooth, convenient and quick.

You can get a gold loan in a single branch visit, during which Muthoot will do an appraisal of your jewellery in terms of its purity and weight. If the jewellery meets the bank standards, the bank will sanction your loan and give you an instant loan against the security of your gold jewellery.

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

• Loan Amount: The amount of gold loan you avail from Muthoot depends on the weight of jewellery you can pledge with the bank. Muthoot offers a loan per gram of gold which differs by the purity of gold and loan to value ratio offered. The Bank offers loans between ₹ 1,500 and ₹ 50 Lakh. The gold loan interest rate Muthoot is lower for higher loan amounts.
• 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 benefit from a low gold loan interest rate from Muthoot.
• Loan tenure: Muthoot offers gold loans for a tenure of 7 days to 36 months. The interest rate is higher for short tenure gold loans.
• Loan to Value ratio: Maximum gold loan to value ratio on gold jewellery has been fixed at 75% by RBI. However, Muthoot also offers loans at lower LTVs. The interest rate on loans with lower LTV will be lower compared to loans with higher LTV. The maximum LTV offered by Muthoot is 75% calculated on the net weight of gold in your jewellery.
• Purpose of Loan: All banks, including Muthoot, also offer gold loans for agricultural purposes at low concessional rates, as the same is counted under priority sector lending targets of the bank. Muthoot Fincorp Ltd.'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 carries some other charges while offering gold loans which includes:

• Processing fees – Muthoot charges minimum processing fees of 0.25% to 1% of loan amount.. To get the lowest fee, gold loan interest rates comparison, offers and cashback apply online through MyLoanCare.
• Prepayment and foreclosure – Banks allow prepayment of gold loans and typically levy prepayment or foreclosure charges i.e. Nil.
• Stamping charges - Stamping charges are charged for the transference of ownership of tangible assets. The charges are as per the respective State's Stamp Act.

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

Yes, Muthoot has reduced the lowest interest on gold loans as effective from 21 Jun, 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 a gold loan from Muthoot. However, the maximum loan amount depends on the value of the gold you pledge. Muthoot funds upto 75% of the gold value as a loan.

✅How can I check my Muthoot gold loan status?

You can check the loan status of Muthoot gold loan by visiting the website and log in to the Muthoot net banking. Once logged in, go to the track loan application in the loans section. If you have applied for a gold loan through MyLoanCare website, log in to your MyLoanCare account, and the status of your loan will be shown on the homepage of your account. However, if you are concerned about the loan approval status, then in the 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 for a gold loan online in Muthoot to get a quick loan. Muthoot offers a gold loan online payment facility. For online payments, you can use the netbanking facility. Apart you can also prompt automated payments of EMI from your regular savings or current account.

✅Are there any prepayment charges on Muthoot gold loan?

Yes, you can prepay your jewel loan after paying prepayment charges. The applicable prepayment charges to foreclose loan from Muthoot are Nil. Before enclosing your gold loan in advance, ensure that foreclosure of Muthoot gold is beneficial in managing financial burden and does not hamper your debt to income ratio.

✅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.

✅What is the procedure for a gold loan in Muthoot?

To apply for a gold loan in Muthoot visit the nearest bank branch or log in to the official website. Also, you can apply with MyLoanCare to get the best offers. Before applying ensure you meet the Muthoot gold loan eligibility criteria and keep your documents handy. Most importantly, be informed of the purity check of your gold.

✅Does Muthoot offer an additional discount on gold loan interest rates for women?

No, Muthoot offers the same gold loan interest rate to all the borrowers, they do not offer lower interest to women borrowers. However, the interest rate is lower for people who take loans for agricultural purposes.

✅Can Muthoot gold loan interest rate be negotiated?

Yes, gold loan rate of Muthoot can be negotiated. There are chances that banks will lower the interest rate if you already have an account with the bank or you have a stable source of income. Further, a larger loan amount can help you grab a gold loan at lower interest rates.

✅How long does it take to process Muthoot Gold Loan?

The gold loan can be disbursed quickly within a few hours. It takes around 90 to 120 minutes to process a loan. Further, it depends upon your eligibility and the quality of the pledged gold.

✅What are the benefits for Muthoot account holders while getting a Gold loan?

Muthoot account can avail a gold loan for a maximum of 75% of the value of the gold at the lowest rate starting at 11.99%. The bank also provides gold without any income proof and CIBIL requirements.

✅What happens if Muthoot Bank gold loan is not paid?

If you do not repay your Muthoot Bank gold loan, you will have to pay a late payment penalty of 0.16%. Further, you may lose all your pledged gold if you skip your loan payment entirely. Also, even when CIBIL score is not a criteria to avail gold loan, yet, prepaying loan on time, can boost your credit score and vice versa.

✅Will Muthoot gold loan affect CIBIL score?

Yes, if you default on repaying your Muthoot gold loan EMI, it will affect your CIBIL negatively and similarly, paying the dues on time will improve your CIBIL.