Blog #Muthoot Gold Loan Online Quick Payment

Presently, gold loans are accessible for numerous reasons and are lent on a short term basis. For example, a gold loan is now available for farmers who are engaged in agriculture; or any allied activities like dairy, poultry, fishery, piggery, sheep, etc.; or for funding farm machinery, or any land development for irrigation or horticulture, or transportation of agricultural produce from one place to another place; and for any other farming activities which are permitted as per the guidelines of NABARD, or the Reserve Bank of India or the Indian Government.


The value, purity and weight of the gold pledged by the borrower to any Bank or NBFC decides the quantum of loan offered, which will be the gold rate per gram, depending on purity levels of gold from 18 to 24 carats. Gold to be pledged against the gold loan can include bank gold coins of only 50 grams, but primarily gold bars are not allowed to be kept as security. The interest rate on the gold loan will be the one-year MCLR rate and a further 1.25% on the total amount, depending upon the current LTV or loan to value ratio. The loan amount is repaid back within a year from the date of disbursement of the gold loan by the lending institution.


The focused product offerings and customer centric operation of the NBFCs have attracted more repeat customers than the banks. This continues even after the LTV ratio was enhanced only for banks to 90%, and the NBFCs were only allowed to bestow 75% of the entire gold value as a gold loan. As a result, the gold loan schemes that were launched especially for individuals, small traders and MSMEs for a longer period of repayment time during the post pandemic phase gained a good response. India's number 1 most trusted financial services brand according to the brand trusted report for continuous five years, Muthoot Finance has evolved as India's biggest gold financing company in terms of the loan portfolio. Shri M. George Muthoot started the gold loan business in the year 1939, primarily for people who cannot access formal credit within a reasonable time. Muthoot Finance Rebel people to meet unanticipated short-term liquidity requirements.


Recently, Muthoot Finance has launched a Loan@home service facility for their customers to get Gold loans without visiting the bank branch physically. This loan scheme has facilitated many customers to monetise their gold ornaments sitting back at their homes. All required official digital checks, verification of customers' gold jewellery, creation of the loan, generation of loan documentation and finally, the disbursal of the loan amount to customers; all will be done at the customer's premises by the Muthoot Gold loan staff at the appointed date and time.

The loan at home app made by Muthoot Finance is an app based on digital service. Customers can easily apply for a gold loan through the dedicated Loan at home online mobile app and two web portals or by logging in online.muthootfinance.com. People who find this process difficult can also contact the Muthoot Finance call centre. Muthoot gold loan online quick payment has further served customers by quick and easy payment method. This online payment method has enabled many customers to make quick payments and save time by not visiting the branch physically and depositing the monthly loan EMI. The procedure followed by Muthoot Finance providing Loans at home is straightforward and hassle-free. When the home enquiry is completed and the loan gets accepted, a video-based KYC process is followed. The process is completed after the appointment for a visit by company executives is scheduled. During this pandemic, this scheme has been the most convenient gold loan option for most people, especially the aged ones.

Read More:- GOLD LOANS ARE MORE FAVOURED DUE TO ECONOMIC DISTRESS 

During COVID19, the demand for gold loans has surged. Due to the statewide shutdown, many people across India have lost their employment. Due to the COVID19 lockdown, many migrants, daily wagers, people working in the private sector, farmers, businessmen, and others lost money. Due to the coronavirus lockdown, demand for covid-19 jumped by 20%. 

According to the reserved bank of India s latest figures, loans against gold have surged by 82% since March 2020. The debt against gold increased from RS 33,303 crore in march 2020 to RS. 60,464 crore this month. The covid-19 second wave, which afflicted so many individuals across the country, has increased the demand for gold loans. The government has also developed a number of gold loan initiatives to assist people who have lost money as a result of the covid-19 outbreak. Many NBFCs are offering various schemes on gold loans due to the covid-19 pandemic. Gold loan is recommended for getting a gold loan as it is offering various schemes on gold loans during the pandemic. The bank charges a minimal interest rate and processing fees.

In India, people in both rural and urban areas are taking out gold loans in times of financial need. Gold loans are far more convenient and accessible than other types of the necessary information about a gold loan by going online. If the borrower defaults, the lender has the option of seizing and selling the collateral, with the revenues going toward the loan's unpaid balance. The lender can surely take legal action against the borrower to reclaim any remaining balance. The tenure of the loan is determined by the interest rate, which may be determined using the gold loan EMI calculator.

There are various reasons for the surge in gold loans during the pandemic. Some of them are -

Investment Opportunity:
Despite the covid-19 pandemic, many individuals are investing in gold because it is the most trusted sector. Many investors opt to put their money into gold. Many people look for gold loans to found their companies all around the country. Gold loans can be extremely advantageous when it comes to establishing a business. This is the key reason why many people it in an emergency
Loan For Many Purposes:
People all over India preferred taking a gold loan from NBFCs and financing companies during covid-19 because it can be used for various purposes without any restrictions from banks and non-banking financing companies (NBFCs). It can be used for purposes like marriage, education, travel, daily needs, business, house repair and many others. People took gold loans to meet their daily requirements. It is considered one of the most convenient loans in times of emergencies.

Gold Prices Are Rising:
This is another major reason for the surge in demand for gold loans. The market price of gold is quite high. High market prices of gold can be beneficial in investing in gold. The loan amount increased with the increase in the price of gold. This is the best time to invest in gold as the gold price is high. The good market conditions of gold attracted many people. Instead of taking out a gold loan, Muthoot gold loan online quick payment offers customers the option of making quick payments online. The majority of gold loan financing institutions ask the debtor to return the principal amount as well as any accrued interest by visiting a branch office or making a payment online.

Lost In Job:
Many people lost their jobs and suffered huge financial difficulties. Many businesses also suffer huge losses. So many people took gold loans from various banks and non-banking companies(NBFCs) to support their daily needs. People preferred taking gold loans in these financially difficult times as they can be easily within the minimal documentation process. So We can say that opting for a gold loan from a Non banking financial institution is better than these covid 19.

Read More:- Why Gold Loans From NBFCs Are More Favored In Covid 

Indians have been using gold in abundance since a long time ago. In addition to attracting the people’s attention, Gold can make one rich or save one from a financial crisis. And the best way for that is taking out gold loans from banks and NBFCs.

A loan provided against gold article(s) by authorized lenders like banks and Non- Banking Financial Companies( NBFCs) to customers in want and need is a gold loan. This gold loan has been in existence long before the Reserve Bank of India and the Government of India even legalized it. People have been accustomed to this loan mainly because of the pledged asset ( physical gold).

Gold is a liquid asset, and the ease of carrying is high. And this seems to be a significant reason for its higher demand than other secured loans like property loans, home loans, or business loans where the asset is a land property or a house or a business. Banks also prefer this loan over others like people as the collateral remains in their hands till the borrower pays off the loan. A gold loan EMI calculator on the bank’s official website or NBFC can be used to calculate a gold loan’s interest based on the loan amount and tenure.

Apart from the collateral requirement, a loan can also be separated as a specific purpose loan and a general-purpose loan. For example, a personal loan can be used for any reason, but a car loan or study loan can only be used for car-related services and educational tuition fees. Like a personal loan, a gold loan can be used for any reason, but unlike a personal loan, a gold loan, as mentioned, is secured and has better features than a personal loan.

The principal amount availed on a gold loan can be used for business, construction, renovation, home remodeling, vacation, wedding, buying machinery, education, medical emergencies, and so on. The bank or the financial institute a borrower avails loan on doesn’t raise a single question on its usage. Also, the loan is highly convenient, and the processing is rapid; therefore, if you want urgent money, always go for a gold loan, as you can have the money in your hands in very few hours, if not minutes.

There are various benefits of availing a gold loan. The first one is the minimum documentation requirement. There are more loans in the finance market than one can count, but most loans have one or two things similar. The bank or NBFC requires income proof to know the applicant’s monthly income for the repayment of the loan.

A CIBIL score is a three-digit number that summarises the applicant’s credit report, which contains personal, banking, and professional information, including the past credits( loans or debts availed from banks or financial companies). This score indicates the applicant’s repayment capacity, so if the score is high, the lender understands that the applicant can pay off the loan smoothly. If not, then the applicant’s repayment capability is low, making the bank or NBFC hesitate to sanction the loan.

But with a legal age applicant and a gazetted document for ID proof and collateral (physical gold), and a filled application form, the applicant gets gold loan approval. Due to this, the application’s processing becomes fast, and the loan amount’s disbursed is speedy. And that’s why the gold loan’s demand is only surging over the years.

Muthoot Finance Limited provides the best gold loans in the nation. The financial company provides gold loans to a maximum of Rs 1crore of LTV up to 90%. The interest rate of the gold loan starts from 7%. The processing charge is 1% of the loan amount and the prepayment fee incurred is NIL. The NBFC provides bullet scheme payment and EMI payment for repayment options. Both online and offline services are available, and one can choose either. Muthoot gold loan online quick payment searched on the internet provides ways for repaying your gold loan quickly from anywhere in the world within minutes. The financial company is highly reliable and well-known for its exemplary customer service.

Also Read:- Jewellers Can Now Repay Part of Gold Loan in a Physical Loan