Summary: Need money quickly for short-term use? Whether for business expansion or education or medical need, a shortage of money can land the best of the plans in a soup. Don’t plan to sell off your assets just yet. Instead, learn about the gold loans. All that jewelry lying unused has the power to bail you out. This article is about leveraging your gold to use and procure money easily without losing on your assets.
CIBIL, the credit information bureau, says that gold is rarely used to generate money. Traditionally, Gold has acquired a cultural value and is wealth, which should pass down generations. From the investment perspective, it is a mark of security; a symbol of help in times of need. Wouldn’t it be nice if this asset could bail you out of tough financial spots? So, a gold loan is a perfect way to raise capital.
Why Gold Loan?
The advantages of a gold loan are manifolds. There is no requirement for a high credit score. Interest rates are reasonable. Besides documentation process is minimal. No foreclosure charges, and minimum processing fees. Your pledged gold is quite safe in the locker of your financial institution, at least safer than it is at your home! Anyone above 18 years is eligible. Whether you are a salaried employee, housewife, self-employed, or a farmer, walk up to the nearest branch and pledge gold. Good news, right?
So, who are the operators to go to? From unorganized money lenders to organized sectors like banks, non-deposit taking NBFCs’, cooperatives, the market is big with an annual business of INR 3000 billion.
Among many, Muthoot Finance has made a name for itself due to its century-old reputation of reliability. With 5000 offices across various cities and a robust network, it has made the loan disbursement process almost like a door-step service, giving Muthoot gold loan an edge over its competitors.
Benefits of Muthoot Gold Loan
For its busy customers, Muthoot Finance has made its transactions convenient. Along with other financial operations, a customer can avail of a Muthoot gold loan online. This makes it easy for you to obtain the loan as well as pay it off without multiple trips to the branch.
You just take that first visit to the branch for registration with the institution and pledging your gold. This is a one-time registration. Once done, Muthoot Finance will generate your customer ID. Through this customer ID, you can avail of a Muthoot gold loan multiple times for up to your limit.
The one-time registration will need some mandatory documents. You need to provide:
- your identity proof
- your address proof
- a signature proof
- 2 photographs
- PAN card
- Your bank account details
Please note, if you do not have a PAN card, make sure to fill up Form 60. You may even have to submit proof of income if needed.
The second mandatory part of your Muthoot gold loan registration is, naturally, the gold that you pledge. Any gold is acceptable, whether jewelry, coin, or block for availing of a loan. That’s a great advantage. The purity will have to be tested for valuation. Once done, you are eligible for a loan amount of about 75% of the value of your gold.
Online Gold Loan
Muthoot Finance allows you to obtain a loan from anywhere, at any time online. All you must do is fill in the customer ID and password to apply for the Muthoot gold loan online. Muthoot Finance will create an account in their books and disburse the loan amount to your bank account on the same day.
You may have to visit to sign on the form. The branch generates a document with all the information on the transaction as soon as they approve and disburse the online gold loan. You will be able to download this document whenever you want. You will need to produce the same if and when you want to close the account and take your gold back.
The method of payment is via EMIs, which you can view online. The maximum period for the loan is usually up to 36 months. You can track multiple loans and the principal and interest outstanding. Make sure you pay back EMIs within time. If not, renew your loan with an extended tenure of repayment.
Once a customer, you can avail of loans within the limit approved for you. At a time, you can have only one loan. After paying it off, you may take another.
What should you do in case you need a loan of a higher amount than your existing loan? If your required amount is still within your limit, you may adjust the previous loan against the new one and close it. This way, you will still have only one loan, but of a higher amount.
Muthoot also came up with the concept of a top-up loan as a value-added service. Again this is a scheme of online gold loan service where top-up eligibility is calculated on the fly and the amount credited to your bank smoothly.
An online gold loan is a convenient option for a quick solution to cash crunch. It takes away the hassle of running into the branch for every transaction. Be transparent and careful during the primary registration and timely transactions. Put your idle gold to good use. After all, ‘All that glitters is not just gold; it may be your security.