Are you going through a temporary cash crisis? Have a medical emergency or need to meet education expenses? Want to buy a dream car/two-wheeler or desire to fuel business financial needs? These are a few common circumstances when an individual may look for a loan, but personal loans may not be so affordable for a middle-class family having various financial obligations with limited funds.
The Solution - Muthoot FinCorp Gold Loan
The solution to this is a gold loan. Gold loans help you get financial aid at times of emergency. What your ancestors gave you or what you have saved in the form of gold, you need not sell it. Simply go to a reputable financial institution like Muthoot FinCorp and apply for an instant gold loan on easy terms. You can choose from a wide variety of gold loans as per your available gold and your financial requirements like Muthoot Blue, Easy Blue, Easy Plus, Easy Max, 24X7 Express, Restartindia Pradhan, Super value, Jai Ho Utsav Gold Loan, Blue Rewards, and others.
Most individuals prefer to collateralise their gold than sell it in their times of need, simply because you can get it back after repaying the loan. Also, gold loans do not limit the borrower to the end use of the credit. Whether you want to meet wedding expenses, cope with a medical emergency, or buy or renovate your dream home, you are free to use the gold loan credit.
Common Mistakes in Making a Gold Application
A gold loan comes with easy eligibility conditions as it is a secured financial product. You just need to submit the basic KYC documents to complete the gold loan process.
While applying for such an easy loan, you should avoid a few common mistakes to make the most of your gold loan. To help you, here are some of those common mistakes:
For the valuation of gold, the market value is calculated according to the purity of gold form. Higher purity of gold means a higher loan amount. You should know that lending institutions are permitted to grant gold loans against gold with a purity of 18-24 karats. Most lenders do not grant gold loans against gold bars. It is always recommended to evaluate your gold purity before you apply for gold loans.
As a borrower, you must be aware of the repayment schedule. Generally, gold loans are available at flexible terms. Make sure to check for all available options in the repayment structure so that you or your family do not feel financially burdened later. When you get a gold loan with Muthoot FinCorp, options for part release and part payment of principal and interest are offered.
Being unaware of finer aspects of LTV calculation
For the gold loan process, lenders have their fixed Loan to Value (LTV) ratio. With Muthoot FinCorp, it can go as high as 75% of the gold pledged. You can get a gold loan without any need for credit scores or income proof. You should go through each parameter associated with a gold loan to know how to maximise the loan value.
When you apply for gold loans with a lender having little credibility
You are going to collateralise your savings in the form of gold. There can be connected emotional sentiments or inheritance value. It may be a big blunder if you do not check the lender's credibility and reputation in the market. It may keep your asset at risk. Muthoot FinCorp is a lending institution with several branches across India, serving 100,000+ customers daily.
When you do not use the Gold loan calculator
Leading financial institutions offer gold loan calculators. You can use it for free. You can apply for a gold loan conveniently as it helps you to find how much loan amount can be offered to you against the available gold. You can get an estimated interest rate on your gold loan and EMI beforehand.
When you neglect the auction terms
While looking for the gold loan process, consider auction terms also. When there is auction pressure on NBFCs, largely due to the ongoing pandemic impact on borrowers' cash flows, especially small-ticket ones, it is important to know the auction terms with a gold loan provider. Before completing the loan tenure, make sure you repay the loan to avoid any auction situation. Lenders have the right to get back the loan amount through an auction of your gold if you cannot repay the loan on time.
Thus, consider these points and avoid such common mistakes. You can avail of a gold loan of up to Rs. 50 lakhs with Muthoot FinCorp.
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