“Gold, it is worth its weight”, this is the line that almost all of us are aware of. But, the worth of its weight an only be utilized when they are cashed. This can be considered during times of financial needs. In crisis situations, gold loans are a wonderful opportunity to help you out of such situations.
Gold loan is the amount you get from the bank as a return for pledging your gold ornaments. The gold ornaments can be brought back by repaying the loan amount to the bank within the assured tenure period.
 |
Muthoot Finance Gold Loan is very well known to everyone mainly because of the advertisements we all have come across. They exclusively offer gold loans to those who are in need. Let us move forward and learn the advantages and disadvantages that the Muthoot Finance Gold Loan has.
Interest Rates:
Muthoot Finance is a well-established finance company that offers gold loans at a reasonable interest rate. Muthoot Finance gold loan interest rates are as low as 11.70 percentage. This interest rate is affordable for most of the applicants and thus stands as the main advantage.
CIBIL doesn’t matter:
The credit score is absolutely not considered for the bank to sanction your loan. Even if you have a bad CIBIL score, it will not affect Muthoot Finance Gold Loan applicants. Since this is a secured loan, the CIBIL score will not influence your loan status.
Easy Processing:
Since gold loans do not have much eligibility criteria, the processing does not involve any complex processing. All you have to do is apply for the loan online or offline. If you are eligible, the loan will be approved within a few minutes and then the amount will be disbursed to the applicant within an hour or so.
To calculate the gold loan you can get, use Muthoot Finance gold loan calculator.
Zero Processing Fee:
Unlike other banks, the Muthoot Finance Gold Loan does not include any additional processing fee thereby reducing the repayment burden to the loan applicant. Foreclosure charges are also not charged by Muthoot Finance.
Less Documentation:
The applicant needs to produce only a few documents to Muthoot finance for getting the loan. The documents that need to be submitted are Address proof, KYC documents, Identity proof, and a couple of passport sized photographs of the applicant.
For this purpose, Driver’s license, passport, aadhar card, and other legal documents can be used.
Some of the disadvantages of the Muthoot Finance Gold Loan are discussed below:
24 Carats - not acceptable:
The 24 carat gold articles you possess cannot be pledged as collateral to the bank. Any gold bars or coins that have the purity of 24 carats cannot be used for the purpose of gold loan
Penal Charges:
If the applicant cannot be able to repay their overdue amount to Muthoot Finance, the borrower will be subjected to a penalty called “Penal Interest”. This is the extra rate of interest added to the existing interest due to not paying the amount within the scheduled deadline.
Legal Proceedings:
In case the borrower has no means to repay the loan amount, then the Muthoot Finance Gold Loan has the terms and conditions to charge the borrower with legal actions. Prior to this, the assets will be moved to auction and will be notified to the borrower.
Thus, these are the advantages and disadvantages of the gold loan offered by Muthoot Finance. Always make sure to do enough research before approaching a particular bank for a gold loan. Wise solutions are very crucial in the case of financial decisions.
No comments:
Post a Comment