Gold is among those precious metals that act as a store of value and is commonly used as an investment tool. People in India are highly fond of gold ornaments, and each household has a significant amount of gold reserves. The high demand for gold jewellery and other products paves the way for a highly liquid market. Reliable financial institutions like Muthoot Fincorp have bridged the gap for people who want to take a loan by pledging their gold possessions. A gold loan is the easiest way to borrow funds at a lower interest rate. The lender imposes no restrictions on how these funds will be used. Read on to learn more about different types of gold loans.
Gold loans and its types
A gold loan is a secured loan offered by financial institutions against gold articles provided by the borrower. The amount of loan issued is highly contingent on the value of the gold object pledged and its purity. Most lenders have a purity range that your gold objects need to match. Typically, it is between 18K to 24K, depending on the internal policies. This is done to reduce the risk associated with low-quality gold items. To compute the value of an object, the weight of non-gold elements is deducted from the gross weight of the gold object.
Types of gold loans
Reliable gold loan institutions like Muthoot Fincorp offer a diverse range of gold loans to serve a broader audience. Some of the most popular gold loan schemes from Muthoot Fincorp include the following.
Restart India Pradhan
The restart Indian Pradhan Gold Loan scheme offers a minimum gold loan amount of INR 5,00,000, based on the value of gold pledged. The total loan tenure is six months. This scheme’s gold loan interest rate is one of the lowest and stands at 11.99% per annum. The processing fee charged is 0.10% of the total loan amount (maximum INR 1000).
The Easy Pro Gold Loan scheme offers a loan amount between INR 3,00,000 to INR 4,99,999, contingent on the value of the gold articles provided. The total loan tenure is nine months, and the interest rate charged is 18% per annum. In addition, a nominal processing fee of INR 20 is charged to borrowers. The availability of this scheme is for borrowers across all zones.
The Easy Blue Gold Loan scheme by Muthoot is ideal for those looking to borrow a loan amount up to INR 1,00,000. The gold loan interest rate charged is 18% per annum, and the total loan tenure is up to 9 months. It is available across all zones in India. The processing fee is the same as for the Easy Pro scheme.
Muthoot’s Easy Max Gold Loan Scheme allows borrowers to take a loan between INR 1,00,000 to INR 2,99,999. The total loan duration is nine months, and the interest rate applicable is 21% per annum. The processing charge for this loan is INR 20, and it is available across all zones.
Blue Super Value
The Muthoot Blue Super Value Gold Loan doesn’t restrict the loan amount. Instead, borrowers can get the desired loan amount based on the value of the gold object pledged and the permissible LTV ratio. The interest rate applicable in this case is 23% per annum.
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