What is Muthoot Fincorp ?
Muthoot Fincorp Limited, the flagship Company of the Muthoot Pappachan Group (MPG), is a finance company that caters to the financial needs of retail and institutional customers. We are registered with the Reserve Bank of India as a systemically important non-deposit taking non-banking finance company (NBFC) with a paid up capital of Rs 181.25 crores and a Net Owned Fund of Rs 824.00 crores as on 31.12.2011.
At Muthoot Fincorp Limited, we are focused on providing a host of financial services. Our services comprise of a mix of retail offerings in the areas of gold loan & other loan products including Auto loans, Investment products, Insurance & Advisory Services.
We have been offering these services to our customers across India with a wide network of over 2500 branches (as on 04/07/12) and expanding more.
We believe in three parameters when it comes to financial services delivery, i.e. people, process & technology. Heavy investments have been made in these three parameters, and we expect these would propel our progress as a global retail financial conglomerate.
What is Gold Loan ?
As the name suggests this is the loan given against gold. Many nationalized banks, private banks and other financial companies offer this loan at attractive rates. Many go for this loan for short period to meet the requirement of their children’s education, marriage and other financial problems in the family. And others think that instead of keeping the gold idle at home or locker, loan against gold is the best option. Moreover with the rise in gold rates the demand from companies and banks offering such loans has raised. For instance, Muthoot Finance, one of the leading gold loan companies has seen 24 percent rises in gold loan against 17 percent raise in the market value of gold.
Advantages of Gold Loan?
- Gold loan doesn’t demand any certificate to show your salary or income and even no credit card history is required. Thus even unemployed and non working people can go for gold loan.
- Unlike any other unsecured loan, gold loan doesn’t require many papers, only few documents such as ID proof and address proof is enough to avail for such loan.
- One of the main advantages of gold loan is its low interest rates. Usually loan over gold is provided at the interest of 12-16% per annum and this is quite low compared to personal loans available at interest rates of 15-26% per annum.
- In rural areas Agricultural loan against gold is also available for agriculturist at very nominal rate of Interest of 7%-8%, proof of agricultural document needs to be provided
- Gold loan is the most simple and convenient forms of loan because here all you need to do is pledge your gold with a bank or finance company and get upto 80% of the market value of the gold as a loan.
- Borrower will be given an option to pay only interest during the entire term and at the end of the tenure you can pay complete borrowed amount in single shot.
- In case of gold loan processing time is very less. Usually banks take just few hours to complete the process where as in case of NBFC’s (Non Banking Financial Companies) a few minutes is enough for the same. So for immediate financial help this is the best option
Advise On Gold Loans
Go for gold loan if you are confident of returning the money in time otherwise, you will be penalized and all your pledged gold will come under the control of bank or finance company.
While opting for gold loan check the interest rates in various banks and private finances. If you go for private lenders then better to go with one who has been in this business for many years.
As far as you are not emotionally linked to your gold ornaments this is the best option. However nothing like this can help you during your difficulties and with the fall of dollars and euro many think gold is the only safe thing left.
Documents required For Gold Loan
Original proof of identification. Any of the following are acceptable:-
2) Govt of India election ID card with address proof.
3) PAN card with address proof.
4) Driver’s licence.
5) Any Govt departmental ID card.
We are bound by and follow KYC norms as per the regulator’s guidelines.
How is the loan amount calculated?
The loan amount is calculated based on the weight of gold. The upper ceilings are prescribed by the RBI.
Will the loan amount be given to me in cash immediately?
Yes, the loan amount will be paid in cash across the counter.
What is the percentage of interest charged and are there any service charges that I have to pay?
The current rate is 24% per annum on diminishing balance. Non-servicing of interest at agreed intervals will attract additional default interest.
Interest Rate structure*
|Loan Scheme||Annual Interest Rate
(on diminishing balance)
|Express 3 Minutes Gold Loan – Daily Interest Scheme
(Available in Kerala only)
|24%||In all cases extra interest @3% per annum for every three months will be charged in the event interest is not serviced regularly, monthly or quarterly as agreed. In the event interest remains un serviced beyond 6 months, additional interest will be charged on the amount of interest outstanding at 1% for every completed month of default.|
|Express 3 Minutes Gold Loan – Weekly interest remittance
|24 % / 27%
( as per the applicable scheme )
|Smart+ Gold Loan (EMI Scheme)||24%|
|Traders Flexi Gold Loan||24%|