India is one of the largest importers of gold, buying gold ornaments is considered an investment option that guarantees high returns. It is a reserve for those rainy days. Gold loan is easy and convenient way to arrange funds as you can easily apply for a credit using your jewellery as collateral. Unlike other loans, the process is very fast and you do not have to wait for months to get your loan sanctioned.
Jewellery loans are very much in demand as these can be availed easily with minimum documentation. Gold loan is a secured one, so there is no need to worry about your credit score. You can easily get the funds to meet temporary financial glitches. With simple EMIs and easy repayment options, jewel loan verification comes with many advantages and this is the reason why it is so popular.
HOW TO DECIDE GOLD VALUATION?
Precisely determining the value of gold is a very important part of gold loan calculations. Whether for personal or business use, you need to know about this factor before availing any form of credit involving gold. Unnecessary delays in repayment can result in having to pay off more than you borrowed and affect your credit rating as well.
Important factors that affect the gold valuation to calculate the gold loan amount are:
1. Gold Carat:
The quality of gold is an important factor to calculate the final amount to be sanctioned in a gold loan. The purity of gold is measured in carats, with 24 carats being pure gold and anything lower than that would mean that there are other metals mixed into your jewelry. Customers can opt for Gold Loan on Gold Ornaments only, excluding Gold watches, Gold Coins or Bars, Gold Utensils, Kundan.
2. Loan-to-value Rate:
The loan-to-value rate is decided by RBI and it is currently set at 75% of the gold value. This means that borrowers have an option to pledge their gold to avail a loan. The amount you can get can vary from scheme to scheme depending on the loan amount disbursed and the gold’s weight.
3. Current Market Rate:
Gold is a valuable metal and as per the RBI guidelines, it is one of the most preferred metals when securing loans from banks. The market rate of gold keeps fluctuating as it depends on different factors. As per the RBI guidelines, the average rate of the last 30 days of per gram rates of gold while calculating the amount of gold loan is taken into account.
4. Stone and Gems:
If you have precious items in your jewellery collection, you should be aware that they will not be included in the overall weight of your gold ornaments. However, if your collection consists of plain jewellery such as chain necklaces and bangles, their value will be higher Learn more about apk
Even though the price of gold might fluctuate, the weight remains constant. This means that if you can keep a larger amount of weight in exchange for a smaller value of collateral, you can get a higher credit limit from us.
Muthoot Fincorp is a gold loan company that has endured the test of time. We provide gold loans with flexible repayment options, enabling our clients to utilize their precious jewellery assets whenever they need cash.
To check your EMI amount, use our gold loan EMIs calculator. To know more about the benefits of an Muthoot Fincorp gold loan, visit your nearest branch and ask our experts any questions you might have.