Loan interest is charged by the lender to the borrower for the loans that are availed with the bank. The interest rate applicable on any loan directly affects the repayment amount for that loan. When applying for a gold loan, various factors are considered by the lenders to determine the interest rate and those factors are:
- Amount of the Loan: For the purpose of better asset based lending, the lenders generally approve the loan amount, which is generally up to 75% of the worth of the security provided by you. The asset based loans generally for owner occupied commercial property or investment property could be up to a maximum of 65% of the value.
- Repayment Capacity: Many gold loan companies don’t ask for income proof when you take a gold loan, since the gold that’s left with them can be used as collateral for the loan. But some lenders may ask for an income proof check to assess if you’d be paying back the loan without defaulting. So, when taking a gold loan, it’s better to get it at a lower rate as your repayment capacity is higher then. Trust us to help you get the lowest gold loan interest rate and charges!
- Some other external factors: At Muthoot Fincorp, our gold loan interest rate is determined by the movement of gold prices globally and supply and demand in the overall jewelry market. However, we work hard to keep our loan rates among the most competitive in the industry, so that you can easily pay your loan installments every month.
Tips To Select Choose Affordable Gold Loan Scheme:
- Interest Rate comparison: Before making a loan application online, we advise you to compare the various interest rates offered by different lending agencies. This will help you make a fair choice. Online gold loan calculator is a very handy tool that can be used to calculate the approximate monthly interest you need to pay back your lender, by entering the principal amount as well as the duration of the tenure at your disposal.
- Knowing all the terms and conditions regarding Gold Loan Interest Rates: Over time, when the average interest rate is increasing, people find it difficult to repay the debt. Most of the time, you ask your loan companies to increase the interest on your loan amount. You can talk to your bank about the same and try asking for an interest waiver for a year or two or three. You can also try negotiating with them. But before doing so check out their terms and conditions. Reading the terms and conditions is vital, since you will be asked to repay back with higher interest in case they are not ready to compromise on certain things which may be very vital to you.
- Look for total loan cost not just Interest Rates: In times when it is easy to get financial products from a large number of lenders, it is easy to get lured by attractive interest rates. But always look at the other terms such as the method of interest calculation and other charges involved. For example, if a lender is offering an interest rate of 9%, look at the total cost of borrowing 100,000 over a period that experts say is representative of your estimated tenure.
Your jewelry gives you a special shine. Make it shine all the more with personal loans, gold loans and home loans availed from the Muthoot Fincorp. We offer you a flexible repayment plan along with attractive interest rates. You can stay assured about the safety of your asset as our bank deposits your jewelry in safe custody. We also inform you about our terms and conditions in detail.
Sign up for Muthoot Fincorp gold loan today if you need cash fast! No one else can give you a better deal than us. We will help you meet your financial needs by giving you the power to exchange your gold jewelry for a loan that can be repaid in monthly installments. The idea of keeping your gold jewelry locked away in a safe developed anxiety and concern, so we eliminated the need to do so.