About Gold Loan

Gold Loan is a way to put the gold lying in your safety locker to the best use when in need of funds. It is better to avail a loan by pledging gold ornaments and gold coins which are otherwise lying idle instead of availing a Personal Loan at a higher rate. Gold Loan is a secured loan granted by banks and other financial institutions against the security of gold ornaments and gold coins.

What is Manappuram Gold Loan?

Manappuram Gold Loan is a loan offered by Manappuram Finance Limited against the security of gold ornaments and jewellery. They offer loan against both hallmarked and non-hallmarked gold. The interest rate on Gold Loan starts from 12% p.a. You can get a higher loan amount if the gold pledged is of 24-carat purity.

The loan availed can be used for any purpose. It can be used to expand businesses or for meeting medical expenses, wedding expenses, education expenses and just about anything. The end use of the loan is not defined.

Key Features of Manappuram Gold Loan

The key features of the loan are:

  • Nature of facility: Term Loan and overdraft facility
  • Purpose of the loan: The loan can be used for any purpose. There is no specific purpose defined for the utilisation of the loan.
  • Quantum of loan: There minimum Gold Loan amount that can be availed from Manappuram is 1,000 and the maximum is up to 1.5 Crores, depending on various factors like weight and purity of gold, applicant's incomes, type of loan scheme, and so on. The main factor is the purity of the gold and the weight of the gold that is pledged. The rate per gram is based on the average rate for 30 days as quoted by the Indian Bullion and Jewellers Association (IBJA) as per the guidelines of the Reserve Bank of India (RBI). 18-carat to 24-carat gold is accepted as security for the loan.
  • Security: The loan is sanctioned against gold ornaments, jeweller, and coins
  • Interest: The interest rate ranges from 12% to 28% p.a. The interest rate will be quoted on annualised basis only. The interest will be calculated on the daily outstanding balance in the loan account at the contracted rate on the basis of 365 days. The compounding, if any, will be provided for specific loan schemes. The rate of interest on all schemes will be at fixed rate till the closure of the loan. There will be no resetting of the interest provided.
  • Repayment: The repayment period for the loan is up to 3 months.

Benefits of Availing the Gold Loan from Manappuram

The benefits of availing the loan from Manappuram are:

  • Once your application form and supporting documents are submitted, Manappuram will give approval within a few minutes provided everything is in order.
  • There are several loan schemes to suit the requirement of all category of customers
  • The rate of interest starts at as low as 12%. Interest is calculated on the daily outstanding balance in the loan account.
  • You can get up to 1.5 Crores as loan amount depending on the purity and weight of the gold to be pledged.
  • Documentation and loan processing procedures are very simple and hassle-free
  • Processing fee collected is as low as 10
  • The interest rate varies according to the loan per gram of gold stipulated

Types of Manappuram Gold Loan Schemes

There are various types of Manappuram Gold Loan Schemes. Key features of each scheme are detailed below. The common features for all the loans are:

  • Purpose of the loan: The loan can be used for any purpose. The end use is not restricted.
  • Nature of facility: Term Loan and overdraft facility available
  • Security: The loan is granted against the collateral security of gold ornaments and gold coins sold by banks.

Here are various types of Gold Loan schemes offered by Manappuram:

GL-DS Scheme

Key features of the loan are:

  • Quantum of loan: The minimum quantum provided is 5,000 and the maximum quantum provided is 50,000.
  • Interest: The interest varies from 12% to 28% depending on the tenure of the loan. The Annualised Rate in Kerala State is 22.03% and in other States, it is 28.03%
  • Repayment: The maximum repayment period is 90 days

GL-SY Scheme:

Key features of the loan are:

  • Quantum of loan: The maximum quantum of the loan under this scheme is 2 Lakhs
  • Interest: The interest varies from 18.50% to 28% depending on the tenure of the loan. The Annualised Rate is 24.30% throughout the country.
  • Repayment: The maximum repayment period is 90 days

Privilege Loan (GL-PL)

  • Quantum of loan: Quantum is based on the individual exposure limit fixed
  • Interest: Interest rate varies from 20.50% to 29% depending on the tenure of the loan. The Annualised Rate is 26.21% across the country.
  • Repayment: The maximum repayment period is 90 days

Express Gold Loan Plus (GL-XG+)

Key features of the loan are:

  • Quantum of Loan: Quantum of the loan is based on the individual exposure limit fixed
  • Interest: Interest varies from 21.50% to 28.50% in Kerala State and from 25.50% to 28.50% in all other States depending on the tenure of the loan. The Annualised Rate is 28.73 in Kerala State 29.47% in all other states.
  • Repayment: The maximum repayment period is 180 days

Super Gold Plus (GL-SG+)

Key features of the loan are:

  • Quantum of Loan: The quantum of the loan is based on the individual exposure limit fixed
  • Interest: The interest varies between 21.50% to 28% in Kerala State and between 25.50% to 28% in all other States depending on the tenure of the loan. The Annualised Rate is 29.72% in Kerala State and 30.25% in other States.
  • Repayment: The maximum repayment period is 270 days

Swarna Shakthi (GL-SX)

This scheme is applicable only in Tier 1 branches in the Northern States and only in Northern branches other than Tier 1 branches.

Key features of the loan are:

  • Quantum of the loan: The quantum of the loan is based on the individual exposure limit fixed
  • Interest: The interest varies between 25.50% to 29% with an Annualised Rate at 27.95% only in Tier 1 branches in the Northern States depending on the tenure of the loan. The interest varies between 26.50% to 29% depending on the tenure of the loan with an Annualised Rate at 28.30% only in Northern branches other than Tier I branches.
  • Repayment: The maximum repayment period is 90 days

Samadhan Plus (GL-SA+)

Key features of the loan are:

  • Quantum of loan: the quantum of the loan is based on the individual exposure limit fixed
  • Interest: Interest varies from 21.50% to 28% depending on the tenure of the loan. The Annualised Rate in Kerala State is 31.09% and 31.52% in all other States.
  • Repayment: The maximum repayment period is 365 days.

GL B1+N

Key features of the loan are:

  • Quantum of loan: The quantum of the loan is based on the individual exposure limit fixed with a minimum of 2 Lakhs.
  • Interest: The interest rate varies from 20% to 28% with Annualised Rate at 25.17% in Kerala State and between 23% to 28% with an Annualised Rate at 26.21% in all other States depending on the tenure of the loan.
  • Repayment: The maximum repayment period is 90 days

GL B1-N

Key features of the loan are:

  • Quantum of loan: The quantum of the loan is based on the individual exposure limit fixed with a minimum of 5 Lakhs.
  • Interest: The interest varies from 19% to 26% depending on the tenure of the loan. The Annualised Rate in Kerala State is 23.43% and 23.78% in all other States.
  • Repayment: The maximum repayment period is 90 days.

GL B2

Key features of the loan are:

  • Quantum of loan: The quantum of the loan is base on the individual exposure limit fixed with a minimum of 10 Lakhs.
  • Interest: The interest varies between 17% to 24% with an Annualised Rate at 21.36% in Kerala State and between 18% to 24% with an Annualised Rate at 21.71% in all other States depending on the tenure of the loan.
  • Repayment: Maximum repayment period is 90 days

GL H3

Key features of the loan are:

  • Quantum of loan: The quantum of the loan is based on the individual exposure fixed with a minimum of 25 Lakhs.
  • Interest: The interest rate varies between 15% to 24% with an Annualised Rate of 19.29% depending on the tenure of the loan.
  • Repayment: The maximum repayment period is 90 days

Business Loan (GL-BL)

Key features of the loan are:

  • Quantum of loan: The quantum of the loan is based on the individual exposure fixed with a minimum of 50 Lakhs.
  • Interest: The interest rate is 24% with an Annualised Rate at 24.48% across the country
  • Repayment: The maximum repayment period is 90 days

GL B4+

Key features of the loan are:

  • Quantum of the loan: The quantum of the loan is based on the individual exposure fixed
  • Interest: The interest rate is 15% with an Annualised Rate at 15.19% across the country
  • Repayment: The maximum repayment period is 90 days

The individual maximum exposure limit is 30 Lakhs in Kerala branches except for Thrissur. The maximum exposure limit at Thrissur is 40 Lakhs and 25 Lakhs for branches outside Kerala.

B4+ Scheme is available for only high -value loans of 1 Crore and above.

Eligibility of Manappuram Gold Loan

The eligibility criteria for Manappuram Gold Loan are:

  • The applicant should be above 18 years
  • The applicant should have a regular income source
  • The loan can be availed by salaried individuals, self-employed individuals/professionals and, businessmen.
  • To get the loan you need to submit gold jewellery of 18 to 24 carat at Manappuam branch. The loan amount sanctioned will be based on the valuation of gold through its purity verification.

Documents Required for Manappuram Gold Loan

The documents required for Manappuram Gold Loan are:

  • Address proof like Aadhar Card, Voter's ID, Utility bills, etc. (any one)
  • Proof of Identity like Passport, Ration Card, Voter's ID, Driving Licence, PAN Card, etc. (any one)
  • Two photographs of the applicant
  • Gold Loan application

Fees and Charges of Manappuram Gold Loan

The fees and charges of Manappuram Gold Loan other than interest are:

Type of charge Amount

Postal Charges:

 

  • Due intimation by ordinary post 15 days prior to the maturity of the loan
  • Auction intimation after the maturity by registered Post

 

 

10

30

Advertisement for auction intimation

50

Gold delivery against lost pawn ticket

  • 75 at the first instance
  • 100 for subsequent instances

Gold processing charges

10 at the time of the settlement of the loan

Custody charges for nil balance accounts

  • Up to 180 days: 2
  • Beyond 180 days: 100 plus additional charges proportionately every day thereafter.

Charges for the statement of accounts

  • Nil within 30 days of closure
  • 25 thereafter

Charges for stamp duty

  • If pledge value is up to 1 Lakh: 0.1% of pledge value for Rajasthan and Nil for other states.
  • If pledge value is up to 1 Lakh: 0.1% of pledge value for Rajasthan and Karnataka, and Nil for other states.

Important Points to Remember while Availing Manappuram Gold Loan

The following points have to be remembered while availing a Manappuram Gold Loan:

  • The gems and stones embedded in the ornament are not considered while assessing the weight of the security offered.
  • Manappuram offers Gold Loan against hallmarked and also un-hallmarked gold
  • The components considered while arriving at the loan amount are the purity of gold and the weight of the gold. The rate per gram will be as per the purity of the gold. 18-carat to 24-carat gold is accepted as security for Gold Loan.
  • The rate per gram is fixed based on the 30 days average rate quoted by the Indian Bullion and Jewellers Association (IBJA) as per RBI guidelines.
  • A good credit score is not mandatory to avail the Gold Loan

Frequently Asked Questions

Is a guarantor required for the Gold Loan?

No, a guarantor is not required for the Gold Loan.

When will additional collateral security be required for the Gold Loan?

If the gold rate falls during the tenure of Gold Loan, the lending institution will insist for collateral security to make up for the depleted LTV level.

What is risk related rate of interest?

Higher loan to value (LTV) rate will result in higher risk interest rate. Higher the LTV higher will be the rate and lower the LTV, lower will be the rate.

What is the penal interest charged for Manappuram Gold Loan?

The penal interest charged is 3% over and above the regular rate of interest for the overdue amount for the overdue period.

What are the modes of payments for Manappuram Gold Loan?

The loan can be paid through:

  • Net Banking
  • Debit Card
  • UPI
  • Payment Wallet

What is OGL?

Online Gold Loan or OGL is a new product launched by Manappuram. With this, the customer can avail the Gold Loan from anywhere at any time. The process of the Gold Loan will be credited to the savings account registered with Manappuram. The loan will be given against the gold already pledged at their branch.

Is the customer given any document at the time availing OGL?

Yes, the customer will be given get a document called OGL Pawn Ticket which will have all the details like loan amount, rate of interest, duration of the loan, maturity date, terms and conditions, and details of gold ornaments along with the photograph of the customer. The document is generated at the time of confirmation of the transaction through e-mail. The document can be downloaded at any point in time through customer e-service portal.

Latest News Snippets

16.05.2019: Profit of 256 crores in the fourth quarter of FY2019 reported by Manappuram Finance

Manappuram Finance, one of the leading financiers in the Gold Loan segment has reported a profit of 256 crores for the March quarter of FY 2019 whereas they made a profit of 170 crores during the previous year. A large number of Gold Loan disbursements made this year has resulted in the strong growth of the net profit.

15.04.2019: A large number of millennials are resorting to Gold Loans to fund their personal requirements

Statistics drawn by the gold experts have indicated that a large number of millennials are opting for Gold Loans to meet their personal requirements. They have expressed that Gold Loans can be really helpful when they are going through a cash crunch. Manappuram has introduced the Online Gold Facility (OGL) along with overdraft facility with a comparatively lower rate of interest to make it convenient for this segment to avail the Gold Loan.

20.05.2019: The vision of Manappuram Finance is to expand the Gold Loan business by 10% in FY 2019

Manappuram Finance is contemplating raising long term loans from reputed national and international financial institutions to facilitate their vision of growing the Gold Loan business by 10% in FY 2019.

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