Muthoot Finance gold loan is a form of gold loan that allows individuals to collect gold amounts to settle certain emergencies. When taking out a gold loan, you must provide gold that will serve as collateral. If the borrower is unable to repay the gold loan more than three consecutive terms, the loan will be auctioned. Also, it would be sold by the bank or financial institution. Taking a Muthoot gold loan is safe, although it can affect your CIBIL score positively.
Muthoot Finance Limited is an Indian financial firm and the largest gold loan NBFC in the country. Including financing gold transactions, the firm gives foreign exchange services, money transfers, wealth management services, travel and tourism services. Also, they even sells gold coins. It is headquartered in Kochi, India, and the founder is M. George Muthoot in the year 1939, Kerala, India.
Is Muthoot Finance Gold Loan Safe?
The Muthoot Finance company gives its customers assurance of security and constant tracking of all their facilities. In that way, their customers can be calm knowing that their gold is in safe custody.
How Does Gold Loan Work In India?
The bank in India takes your gold as collateral for the term of the loan. Therefore, if you want to collect a Muthoot Finance gold loan, be ready to deposit all your gold as collateral. Banks also charge an interest rate, and once you pay back the loan, the banks give you back your jewelry.
How Do I Clear My Muthoot Gold Loan?
To repay your Muthoot gold loan, you must either go online or visit the branch office to settle the principal amount and interest. Not minding the place, you pay your amount; the final collection of the promised gold will have to be from the branch where it was promised.
Is Taking a Gold Loan Safe?
A gold loan is a secured loan. Without even checking the creditor’s ability to pay back the loan, the gold loan is protected by the gold that serves as collateral. This means the gold that serves as collateral stays with the creditor until the loan is completely paid off, and it is a great way to offer security to the creditor.
What Happens If The Gold Loan Is Not Paid?
If the borrower refuses to pay the gold loan, then the gold will be put up for auction, and it will be sold off by the bank or the financial institution. The gold has been pledged already; in so doing, if the borrower fails to pay the term payment. This is a non-performing asset, and the gold will be sold off to recover the gold given out.
How Is a Gold Loan Calculated?
The gold loan is calculated based on the amount borrowed. The worth and purity of the gold, as well as the gold loan per gram rate, determine how much gold can be borrowed. This means that the gold per gram is $46,012. For 50 grams of gold, you can get 75% of the amount of $3,106.
Will a Gold Loan Affect The CIBIL Score?
Making due payment of any loan can boost your credit score, and so can a gold loan, so if a gold loan is collected and paid back early, then it will have a positive impact on your credit score instead of taking an unsecured personal loan, which means the gold loan may be cost-efficient.
