About Gold Loan

The investment made in Gold will prove prudent in times of emergencies. You can avail instant loans by pledging gold ornaments when you are in dire need of funds. Even though Personal Loans are available instantly, there are yet some of the eligibility criteria you may not be able to fulfil. Gold Loan further dilutes the criteria to make the availability of funds easier for you. Gold Loan is nothing but a Secured Personal Loan given against the pledge of gold ornaments and gold coins sold by the bank with no restrictions on the end use. It is considered a multi-purpose loan which can be relied upon when in severe financial crisis.

What is Muthoot Gold Loan?

Muthoot Gold Loan is Gold Loan offered by Muthoot Finance against the pledge of gold ornaments and gold coins. This a multi-purpose loan that can be utilised for anything. Muthoot Finance's Gold Loan portfolio is one of the largest across the country as well as overseas. On n average over 2 Lakh people avail the services of Muthoot Finance on a daily basis. In Muthoot Finance, funds can be generated with your gold in a matter of minutes.

Key Features of Muthoot Gold Loan

The following are the key features of Muthoot Gold Loan:

  • Purpose of the loan: Muthoot Gold Loan can be utilised for various purposes. There is no restriction on the end use. It can be used either for personal requirements or for business purposes.
  • Nature of facility: Term Loan as well as Overdraft facility, both are available
  • Quantum of loan: The minimum quantum of the loan is 1,500 and there is no maximum limit. The quantum of the loan will be assessed on the basis of purity of the gold pledged and the weight of the gold.
  • Security: The loan is provided against the collateral security of gold ornaments and gold coins.
  • Interest rate: The interest rate ranges from 12% to 27% and is specific to different states and schemes. The interest also varies with the loan to value (LTV) ratio. The higher the LTV, the higher is the rate.
  • Repayment: The minimum repayment tenure is 7 days and the maximum is 12 months (for normal schemes) and 36 months (for EMI-based scheme).
  • Pre-closure/part payment charges: Pre-closure and part-payment allowed without any charges.

Benefits of Availing Gold Loan from Muthoot

The benefits of availing Gold Loan from Muthoot are:

  • The loan is disbursed as quickly in minutes
  • The minimum loan amount is 1,500 and there is no maximum limit
  • There is a pre-payment option for Gold Loan that doesn't involve any penalty
  • Documentation requirement is minimal and the process is hassle-free
  • There is an in-house gold evaluation facility available
  • They offer the best customer service within a short time
  • The safety of the gold pledged with them is ensured
  • The rate of interest is competitive and starts at 12%
  • Payments to the loan account can be done on either a daily, weekly, or monthly basis
  • Even bullet payment where interest has to be paid as and when due and the principal paid in a lump sum at the time of maturity of the loan is permitted.
  • Part-payment and part release of the loan is enabled

Types of Muthoot Gold Loan

There are various schemes under Muthoot Gold Loan the details of which are as given below:

Mahila Loan (MML)

The key features of this loan are:

  • Quantum of loan: The maximum quantum of the loan under this scheme is 5 Lakhs
  • Interest: The interest is charged at 24% p.a. Penal interest will be charged at 2% above the regular rate, i.e., 26% on the overdue quantum for the overdue period.
  • Repayment: The maximum repayment period is 360 days

Best Value Loan

The key features of this loan are:

  • Quantum of loan: The maximum quantum of the loan under this scheme is 3 Lakhs
  • Interest: Interest is charged at 24% p.a. Penal interest will be charged at 2% above the regular rate, i.e., 26% p.a. on the overdue amount for the overdue period.
  • Repayment: The maximum repayment period is 360 days

Interest pre-paid loan (IPL)

The key features of this loan are:

  • Quantum of loan: The maximum quantum of the loan under this scheme is 5 Lakhs
  • Interest: Interest is charged at 16% p.a. for 3 months tenure, at 15% p.a. for 6 months tenure and at 12% p.a. for 12 months tenure. If the loan is closed before maturity the rate of interest charged will be 22% p.a.
  • Repayment: The maximum repayment period is 12 months

Win Bank Loan (WBS)

The key features of this loan are:

  • Quantum of loan: The maximum quantum of the loan under this scheme is 5 Lakhs
  • Interest: The interest is charged at 23% p.a. Penal interest at 25% p.a. will be charged on the overdue amount for the overdue period.
  • Repayment: The maximum repayment period is 360 days

Super Loan (MSL)

The key features of this loan are:

  • Quantum of loan: The maximum loan is not defined for this loan
  • Interest: The interest is charged at 24% p.a. The interest will be charged at 21% p.a. for 90 days, and at 23% for 180 days. Penal interest at 2% above the normal rate will be applicable for the overdue amount for the overdue period.
  • Repayment: The maximum repayment period for this loan is 360 days

Advantage Loan (MAL)

The key features for this loan are:

  • Quantum of loan: The maximum quantum for this loan is not defined. It is as per sanction on case to case basis.
  • Interest: The interest for tenure up to 360 days will be charged at 24% p.a. for the Southern Regions an at 25% for rest of India.

The interest is charged at discounted rates for lesser tenure in slab rates depending upon the tenure. The interest will be charged at 19% p.a. for southern regions for 90 days and at 22% p.a. for 180 days tenure. The interest will be charged at 20% p.a. for 30 days tenure, at 22% p.a. for 90 days tenure and at 24% p.a. for 180 days tenure for the rest of India. Penal interest will be charged at 2% above the normal rate, i.e., at 25% p.a. for southern regions and at 26% p.a. for the rest of India for the overdue period on the overdue amount.

  • Repayment: The maximum repayment period for the loan is 360 days

High-Value Loan (MHL)

The key features of this loan are:

  • Quantum of loan: The minimum quantum under this loan is 3 Lakhs and there is no maximum limit.
  • Interest: The interest for tenure up to 360 days is charged at 24% p.a. for southern regions and at 25% p.a. for the rest of India.

    The interest is charged at discounted rates depending upon the tenure. The interest is charged at 17% p.a. for the southern region and at 18% p.a. for the Rest of India for 30 days tenure. The interest is charged at 19% for the southern region and at 20% for the rest of India for 90 days tenure, at 21% p.a. for the southern region and at 22% for the rest of India for 180 days tenure and, at 22% p.a. for the southern region alone for 270 days tenure. Penal interest at 25 above the normal rate at 26% p.a. for the southern region and 27% p.a. for the Rest of India will be charged for the overdue amount for the overdue period.

  • Repayment: The maximum repayment period for this loan is 360 days

High -Value Loan Plus (MHP)

The key features of this loan are:

  • Quantum of loan: The minimum quantum of the loan is 5 Lakhs. There is no maximum limit. It is based on specific approval.
  • Interest: The rate of interest charged for tenure of 360 days is 24% p.a. in the southern region and 25% p.a. in the rest of India. Penal interest at 2% over and above the regular rate will be charged on the overdue amount for the overdue period.

    The interest will be charged at a discounted rate for lesser tenures in slabs depending on the tenure chosen. The interest will be charged at 12% p.a. for the southern region and at 13% p.a. for the rest of India for 30 days tenure, at 17% p.a. for the Rest of India for 60 days tenure, at 17% p.a. for the southern region and at 20% p.a. for the Rest of India for 90 days tenure, at 21% p.a. for the rest of India for 180 days tenure, at 21% p.a. for both the regions for 270 days tenure and, at 23% p.a. for 360 days for the southern region.

  • Repayment: The maximum repayment period is 360 days

Muthoot Overdraft Scheme (MOS):

The key features of this loan are:

  • Quantum of loan: The minimum quantum of loan is 5 Lakhs for southern region and 2 Lakhs for the rest of India. The maximum limit is based on specific approval.
  • Interest: The interest is charged at 19% p.a. for the Southern Region as well as for the Rest of India.
  • Repayment: The overdraft facility is provided only for 12 months. It will be renewed every year at the discretion of Muthoot Finance. It is a revolving credit facility and recurring withdrawal and deposit transactions can be done any number of times. Penal interest will be charged at 2% above the normal rate for the overdue amount for the overdue period.

Zero Interest Loan

The key features of the loan are:

  • Quantum of loan: The quantum of loan is not specified for this scheme. The quantum is as specific approval.
  • Interest: 0% as the name suggests, but for delayed EMI, interest at 24% p.a. will be charged
  • Repayment: The repayment period is not specified for this category of loan

One percent Loan

The key features of this loan are:

  • Quantum of loan: The maximum amount of loan for this loan is 5 Lakhs
  • Interest: An interest will be charged at 26% p.a. for tenure up to 360 days throughout the country. Discounted rate in slabs will be charged at 12% p.a. for 30 days tenure, at 21% p.a. for 90 days tenure, 23% p.a. for 180 days tenure and, at 25% p.a. for 270 days tenure. Penal interest at 1% above the normal rate will be collected for the delayed EMI.
  • Repayment: The maximum repayment period for this loan is 360 days.

Delight Loan (MDL)

The key features of this loan are:

  • Quantum of loan: The maximum quantum under this loan is 2 Lakhs
  • Interest: An Interest at 26% p.a. will be charged for 360 days tenure. An interest at a discounted rate will be charged at 17% p.a. for 30 days tenure, at 22% p.a. for 90 days and, at 24% p.a. for 180 days tenure. Penal interest at 1% over and above the normal rate will be collected for delayed payment on the overdue amount.
  • Repayment: The maximum repayment period is 360 days

Ultimate Loan (MUL)

The key features of this loan are:

  • Quantum of loan: The quantum of the loan under this scheme is as per specific approval
  • Interest: An interest at 26% p.a. will be charged for 360 days tenure. Interest at a discounted rate will be charged at 22% p.a. for 30 days tenure, at 24% for 90 days tenure and at 25% p.a. for 180 days tenure. Penal interest at 1% over and above the normal rate will be charged on the overdue amount for the overdue period.
  • Repayment: The maximum repayment period for this loan is 360 days

Muthoot EMI Scheme

The key features of the loan are:

  • Quantum of loan: The minimum quantum of the loan is 20,000
  • Interest: An interest at 21% p.a. will be charged
  • Repayment: The maximum repayment period is 36 months. The loan can be repaid in 6/12/18/24/30/36 months. The minimum repayment period is 6 months.

Eligibility for Muthoot Gold Loan

The applicant should be 18 year above Indian citizen having gold ornaments and all the required documents.

Documents Required Muthoot Gold Loan

The documents required for Muthoot Gold Loan are:

  • Duly filled application form for Gold Loan
  • Two recent photographs of the applicant in passport size
  • Proof of identity and residential address

Charges for Muthoot Gold Loan

The fees and charges associated with Muthoot Gold Loan are:

Type of charge Amount

Service charges for IPL/MHL/MHP

 

For Southern Region

  • For IPL: 1% of the loan amount (for 12 months period)
  • For MHL and MHP: 0.5% of the loan amount

For Rest of India

  • For MHL
    • Up to 10 Lakhs: 1% of the loan amount
    • For loan above 10 Lakhs up to 25 Lakhs: 0.5% of the loan amount
    • 25 Lakhs and above: 0.25 of the loan amount
  • For MHP: 0.5% of the loan amount

Service charges for ZIL/MOS

  • For ZIL: 50 per account
  • For MOS: 1,500 per account (for renewals before 12 months, 750 per account)

Security charges

0.15% of the loan amount with a minimum of 50 and a maximum of 600 for the rest of India.

SMS charges

At the time of renewal and closure in Southern Regions an SMS charge of 2 per transaction and an SMS charge of 5 in the Rest of India will be collected.

Notice Charges

  • 3 ordinary notices at 10 per notice and the 4th registered notice at 70 in Southern branches.
  • 3 ordinary notices at 30 each and 4th registered notice at 70 and auction notice at 120 in Rest of India branches

Token charges for fresh loans for all schemes except MML and MBL

  • For a loan up to 10,000: 10
  • For loan above 10,000: 20
  • For digital transfer charges not applicable

Token lost charges

25 as an additional charge will be collected along with the cost of the stamp paper applicable will be collected.

Stamp duty levied by State Government

Actual wherever applicable in the States of Karnataka, Andhra and Rajasthan

Things to Remember while Applying for Muthoot Gold Loan

The following are the things to remember while applying for Muthoot Gold Loan:

  • The gems and stones embedded in the ornament are excluded from the weight of gold while assessing the quantum of loan.
  • The rate of gold is based on the average rate for 30 days as quoted by IBJA as per the RBI guidelines.
  • There will be a discount on the rate of interest if the monthly interest is paid regularly
  • No minimum days of interest. Interest will be charged only for the days pledged
  • Muthoot will accept the pledge of both hallmarked and un-hallmarked gold
  • The purity of gold required is between 18-carat to 24-carat
  • CIBIL score is not a concern to avail a Gold Loan. An applicant with a low credit score also can avail the loan.

Frequently Asked Questions

What is CIF?

Every customer of Muthoot Finance will have a unique Customer Identification Number (CIF). This CIF will be a 15-digit numeric code.

What are the different options available for repayment?

The modes of repayment of the loan are debit card, cash, or cheque. Demand drafts and credit cards are not accepted modes for repayment. The repayment can also be done through Online Web pay facility or through the iMuthoot mobile application.

Can partial repayment be made towards the loan?

Partial payment along with interest can be made at any Muthoot finance branch or through their official website using the online payment option. But the final payment has to be made at the branch where the Gold Loan has been availed.

How is the part payment to the loan account adjusted towards the interest and principal amount?

If you make part payment 20 days from the day of availing the loan and the part payment is inclusive of the interest component, then interest for the 20 days will be adjusted and the rest of the amount will be adjusted towards the principal amount. The interest from the 21st day will be on the reduced principal balance to the extent of the part payment adjustment.

Latest News Snippets

13.05.2019: The profit of Muthoot Finance for Q4F19 rises by 11%

The Gold Loan outstanding touched 33,585 Crores and the total income grew by 9% to 6,881 Crores showing a 16% rise.

21.05.2019: Salaried class in Delhi NCR to get loan from Muthoot finance up to 10 lakhs

Muthoot Finance offers unsecured loans from 1 Lakh to 10 Lakhs at an interest rate of 13.5% to 23% p.a. under their new scheme introduced exclusively for the salaried class.

14.05.2019: Muthoot Finance to borrow 1000 crore via NCDs

Muthoot Finance proposed to raise funds through NCDs which will be used mainly for the lending activities of the Company. The amount to be borrowed is 1,000 Crores.

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