All You Need to Know About Muthoot Finance Gold Loan Interest

muthoot finance gold loan interest

The gold market has shown exceptional recovery from the pandemic and the demand for gold jewellery has doubled in 2021, breaking its previous six-year record. A prime contributor to this has been the wedding and the festival seasons. Every Indian family has some amount of gold in the form of ornaments or coins. Gold is the revered yellow metal, used for gifting at weddings and auspicious occasions. Once kept safely in lockers, gold has broken the barriers and is now a hot favourite to arrange for finances in tough times. A loan against gold is the gateway to arranging quick finance against your gold reserve and a leading name in this area is Muthoot FinCorp. 

Let’s delve deeper into Muthoot FinCorp’s gold loan and know more about Muthoot gold loan interest.

Gold Loan and Interest Rate 

The primary concern while taking any kind of a loan is the interest you would have to pay to the lender for the loan. While alternate loan options like a personal loan and housing loan carry a high interest rate of up to 20-25%, a loan against gold is available at a much lower interest rate. This is because a gold loan is a secured loan and the lender has the security of your pledged jewellery with them, giving them the confidence to offer you a loan at easier terms and a lower interest rate. 

With Muthoot Fincorp, you can get a loan against gold at as low as 6.9% per annum. 

Muthoot Finance Gold Loan Interest Rate

The interest rate on gold loans at Muthoot FinCorp is designed to give absolute comfort and ease to the customers. You can choose from various gold loan schemes, having different interest rates and payback tenures as per your requirement and payback capacity. Various gold loan schemes from Muthoot like Muthoot Blue Guide Gold Loan, Muthoot Blue Bright Gold Loan, Muthoot Super Value, EMI Student Support, and many more, start at only 12% p.a., and you can choose the appropriate plan as per your loan requirement. 

Calculation of Muthoot Finance Gold Loan Interest Rate

The interest rate on gold loans for every borrower is unique, depending on the borrower’s requirement and his place of residence. The  Muthoot Finance Gold Loan Interest Rate is calculated using a simple interest method of calculation. 

For example, if you borrow a loan of Rs. 1,00,000 at an interest rate of 12% for 1 year, the interest payable on the principal amount at the end of one year will be Rs. 12,000. 

You can use the online calculator given on the website of Muthoot FinCorp to calculate the interest payable on your desired loan amount. 

Factors That Affect Muthoot Finance Gold Loan Interest Rate

As discussed, the interest rate on gold loans is unique for every borrower. Here are the factors that affect the interest rate for your gold loan:

  • Principal loan amount: The principal loan amount that you want to get is the primary deciding factor to your gold loan interest rate. If the loan amount you require is high, the interest rate on it will also be high and vice versa. Thus, it is advisable to analyse your true requirement and not over-borrow.
  • Scheme of gold loan: Every gold loan scheme offered by Muthoot FinCorp comes with a different interest rate, tenure of loan, and loan amount. The borrower has the freedom to choose the combination best suited to him and pay the interest applicable on the particular gold loan scheme.

Benefits of Muthoot Finance Gold Loan Interest Rate  

  • The best possible value of your pledged gold: Muthoot FinCorp gives you the best possible value on the gold you pledge as collateral against your gold loan on its various gold loan schemes. 
  • Low gold loan interest rates: The loan against gold at Muthoot FinCorp starts at an affordable rate of only 6.9% per annum, keeping your repayment burden in check. 
  • Security of your pledged gold: Muthoot FinCorp understands that your gold is precious for you. Therefore, they keep your pledged gold with the utmost safety in secure vaults and under constant supervision. Once you repay the loan, you can get your gold back comfortably. 

Muthoot FinCorp offers you a gold loan at comfortable and flexible repayment terms and affordable interest rates. Further, the documentation required for the gold loan and the processing time and fee on your Muthoot gold loan are very few. To know more about Muthoot FinCorp gold loan.

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