Yes, for cash remittances above Rs 25000/- towards gold loan repayment, service charge at rate of 0.25% plus applicable service tax @ 12.36% will be levied.
Is it a flat rate of interest that I have to pay?
No, it is not flat rate but daily diminishing rate .The interest is charged on the outstanding balance of the loan.
Do I get an account number?
Yes. We will be giving a loyalty number which you can produce each time you avail a loan; thereby you are exempted from paying the service charges every time.
What is the amount received if I pledge 1 gram of gold?
The minimum weight accepted for pledging is 2 grams and the rate applicable as per the LTV norms for the day will be disbursed. The minimum loan amount is Rs 500/-
Can I pledge ornaments studded with stones?
Yes you can. The weight of the stone will be reduced while arriving at the amount of loan.
Is there any ceiling on the maximum amount that I can avail at a time?
There is no ceiling on the maximum amount that can be availed.
Can I pledge more than once in a day?
Yes you can pledge any number of times in a day.
What is the loan amount if I pledge 24 carat gold bar/coin?
You are not eligible to avail loan by pledging 24 carat gold bar as per latest RBI regulations.
How is the repayment of loan done? Is there an EMI calculated?
There is no fixed EMI and therefore you can remit any amount at any time to reduce your interest burden.
If I wish to release gold pledged by me in the morning today itself will I be charged interest?
Yes. The minimum interest payable is for 7 days irrespective of how soon it is released by you.
What are the documents to be submitted by me for availing the loan?
Customer has to bring a valid identity proof and address proof at the first time.
Can the amount be remitted daily?
Yes. Repayments can be made in any mode i.edaily, weekly or monthly as per customer convenience, however it should be ensured than interest needs to be remitted within 3 months
If I am unable to pay interest on time, what are the penal charges?
If interest is not remitted for 3 months, the interest rate applicable will be 27%. If interest is not remitted for 6 months, the interest rate applicable will be 30%. If no interest is received even after 6 months penal interest at the rate of 6% on the interest due will be charged from the 7th month. The penal interest rate will progress by 1% in the coming months, if no interest is paid.
Will I be informed if my loan becomes overdue?
Yes .You will be informed of the same by notice sent by post to the address given.
Is part release of Gold pledged possible?
Yes. Part release of gold pledged is possible to the extent of amount paid with upto date interest.
What procedure if I misplace the receipt of the gold pledged?
For amount less than Rs 5000/- an indemnity bond by customer on plain paper is to be submitted at the time of release of gold. For amount higher than Rs 5000/-an indemnity bond on an Rs 50 stamp paper has to be submitted by customer.
If I am unable to service the interest what is the time limit before which the gold will be auctioned?
Notices to the customers are sent after 3, 6 and 11 months. Gold is auctioned after 13 months after exhausting all means of recovery.
Can a third party remit the outstanding amount for closure of my loan?
Yes. The amount can be remitted by a person other than the borrower. However, in the event of closure of loan, the ornaments will be handed over only if the borrower comes in person to collect the same or else an authorization letter has to be produced
WHY GOLD LOAN?
Gold is one of the most liquid precious metals and Gold loans have emerged as one of the best means of raising quick, short-term capital or to meet emergency requirement of retail customers.
Gold loan is now being preferred by customers due to variety of reasons, primarily:
- Quick loan approvals and disbursals, with minimal documentation and formalities ( esp. offered by NBFCs)
- Most convenient loan to be availed in case of emergency
- Easily available asset with most of the households
- Multitude of loan options with higher LTVs.
- Greater accessibility due to better penetration.
- Lesser formalities allow large section of customers to be served.
- Convenient hours of operation.
- Flexibility: Provision of very small and very large loan amounts.
In the branches of Muthoot Fincorp Ltd a customer has wide variety of gold loan options to meet their requirements. The different types of gold loans available in the MFL branches are as given below. Depending on the market conditions the gold loan products available in the branches may differ from zone to zone. The key Gold loan products available at our branches are:
- Express Gold Loan
- Muthoot Multi Interest Product
- EMI Gold Loan
- Vyapar Mitra
- Muthoot Special Gold Loan
- Special 16
Each of these products caters to different customer segment OR different requirements within the same segment.
Quick and Easy Gold Loans
The yellow glimmer of gold has had Indians scrambling for it since the time of the Vedas (1500 BC) and the trend remains unchanged even today. The value of gold has always gone up over the years and makes one of the best forms of physical investments. And the best part is that when times are hard or when you are in sudden need of money for funding your kid’s education or wedding or are facing some emergency, this same gold can come again to your rescue and help you secure money in the form of a gold loan.
Gold, also known as ‘Aurum’ in Latin, literally means ‘shining dawn’. In ancient times, it was this metal that the royalty used to deck themselves in, in the form of ornaments, personal weaponry, as well as interwoven into their garments. As a show of wealth in some cultures, gold dust is fed to new-born babies in minute doses. Apart from jewelry and as a store of wealth, this precious metal is used in a variety of medical and industrial processes too. It’s used in modern medicine as radio isotopes in cancer treatment and as dental fillings by the well-to-do. It’s also used in computers and mobile phones with almost all hi-tech appliances having some gold content in them. Even space satellites are known to use gold in kilos! And just to get an idea of the big picture, only 45% of the gold is used in jewelry, with another 10% in medical and industrial use and the remaining 45% in finance and investments.
Gold is increasingly being used for availing gold loans from banks and financial institutions and with increasing gold rates, the number of finance houses offering this service has gone up substantially. Muthoot Fincorp, one of the leading finance houses and the flagship company of the Muthoot Pappachan Group has a wide portfolio of gold loan products targeted at different sectors of society.
Aside from the special ‘Vanitha Gold Loan’ scheme to help woman, Muthoot Fincorp offers the ‘Express Gold Loan’ for when there is an emergency and you need money at your fingertips ASAP, the ‘Multi-Interest Gold Loan’ which is suitable for the interest-sensitive retail customers, the ‘EMI Gold Loan’ that’s suitable for the salaried population, the ‘Vyapar Mitra’ meant for the traders, the ‘Muthoot Special Gold Loan’ for those people who need loans greater than 2lac rupees as well as the ‘Special 16’ gold loan meant to help out traders in need of loans between 1-2lac rupees. The main reason for availing gold loans is the interest rate which is significantly lower than the interest offered for most personal loans. Aside from that, there is no need to show any bank statements or credit card history, with even housewives being eligible for this loan.
Walk into any of the over 3,600 branches and avail of easy gold loans with minimal, hassle-free documentation, resting assured that your gold is secure as you avail of an instant loan against it.