What are the Advantages of Taking a Gold Loan Against Your Ornaments?

What are the Advantages of Taking a Gold Loan Against Your Ornaments?

A financial emergency can strike at any time, and it is not always possible to have surplus funds handy to cater to the situation. In such times, the most viable option is to take a personal loan. Now the imperative question is to understand whether to go for a secured or unsecured loan. While most lending organizations offer unsecured personal loans, they often take longer than needed to approve them. Gold loan is a form of secured personal loan to avail in stringent times, with no wait time at all.

Muthoot FinCorp is a trusted name catering to the financial needs of the people across the nation effectively, for over 134 years. The personal and business financing wing of Muthoot Pappachan Group, the organization is one of the leading online gold loan providers in the country.

Now let us analyze the significant advantages of choosing a gold loan against your ornaments with Muthoot FinCorp over an unsecured personal loan.

Instant Approvals

The foremost benefit of availing gold loan with Muthoot FinCorp is the timely approval. When in grave need of money, one doesn’t want to wait and undergo the prolonged loan sanction processes. At Muthoot, you walk into any one of the 4200 branches, hand over your ornaments to a professional and well-trained executive, complete the formalities and the loan is credited to your account or handed to you in cash, within a few minutes.

Hassle-free Documentation

Availing personal loans is a process demanding massive documentation to meet the sanction requirements. Luckily, a gold loan is not one such process. At any of the Muthoot FinCorp branches, you can just walk in with basic ID proof documents and get the loan approved instantly. To add to the benefit, there is no need to produce any warrantors, even if you are a resident of another town, city, or state. The ornaments that you submit act as the collateral and provide a warranty for the loan repayment. What more can one ask for!

Ornaments Remain Insured

The ornaments that you make after saving money for years are the assets you cannot risk. When you avail of a loan with Muthoot FinCorp, your gold is kept under tight surveillance in highly secured lockers. To keep the security of the asset intact, it is further insured providing a blanket against unforeseen circumstances. No matter how long the gold remains with the organization, it is always safe and is handed to you securely, once the loan repayment is complete.

Easy Repayment Schedules

When you take out a loan against ornaments, the repayment is the easiest part. You are not required to make scheduled EMI payments or get bound within a stipulated repayment process. You can keep paying in parts as and when you find the ease of funds without feeling the burden of setting aside an amount every now and then for loan repayment. As long as you are making timely interest payments, the principal amount remains unchanged, which you can pay in one go as you arrange for funds.

Lowest Interest Rates

Keeping ornaments as collateral also facilitates lower interest rates, unlike unsecured personal loans that come at massive interests. Muthoot FinCorp finances your immediate needs with gold loans interest rates as low as 6.9% p.a. to start with, depending on the gold to loan ratio and the tenure of the loan. The interest payments can be made monthly, allowing you to keep the principal amount staple and easy to repay the amount remains unchanged, which you can pay in one go as you arrange for funds.

No Prepayment Penalties

In case you are able to arrange funds and approach for a loan closure before the decided tenure, you can do it easily, without having to pay any penalty on early closure. Most financing institutions charge a huge penalty if you wish to close the loan before the stipulated period. Muthoot Blue takes an edge in the matter and yet again becomes your go-to place for all your financing needs.

Immediate Top-up Facility

When you avail of a gold loan online, you are sanctioned an amount equivalent to a certain percentage of the total gold value, called the loan to value (LTV). This value remains dynamic with the changing gold rates in the market. Once availed of an amount, you can always apply for a top-up on the same loan amount, depending on the quantity of the ornaments you pledged and the current gold value. If a sudden situation arises that demands more funds, you do not have to knock on any other door, Muthoot FinCorp comes to the rescue again.

Quick Online Updates

When you have pledged your ornaments, you have all the right to get instant access to your online gold loan account. This is facilitated through the Muthoot Blue app, where you can link your registered mobile number and log in to find all the updates related to your loans in a single space. Thus, you are always updated with your loan account and organize the repayment funds effectively. The advantages of availing of a gold loan against your ornaments are inundated, especially when you are at one of the thousands of branches at Muthoot FinCorp. Your dream car, an immediate healthcare expense, education funding or a wedding to take care of, everything is sorted with the Muthoot gold finance option at your disposal. To avail of the quick and easy gold loan against ornaments, call 18001021616 today!