Gold loan, as the name implies, is a loan that is offered by banks to the consumers against their pledging of gold ornaments like gold ornaments, gold coins etc.Gold loan is offered by all types of nationalized banks, private banks as well as other financial companies at very competitive rate of interest. They are generally used to carry out all the basic household requirements of the consumers like children’s education, marriage etc. Presently there are many financial companies offering these gold loans at attractive interest rates. Let us have a look at the top 5 leading companies offering gold loans:
- Muthoot Finance Gold Loan
- Mannappuram Finance Gold Loan
- Union Gold Loan
- HDFC Gold Loan
- SBI Gold Loan
Muthoot is the leader in the Gold Loan race while SBI also gains the number 5 spot in our list. Since these two are among the top players, it necessitates knowing the reason why. The Gold Loans promised by them must have some benefits which ensure the leading spots. So, let us delve into the Gold Loans of Muthoot Finance, a Non-Banking Financial Corporation and SBI, a leading public-sector bank.
Muthoot Finance Gold Loan
Muthoot Finance is one of the leading and largest gold loan providers not only in India but also globally. They have been taking into account all the gold loan needs of the customers at very competitive interest rates for the past 129 years. Let us have a look at the features of Muthoot Finance Gold Loan:
- The loan is distributed as quickly as within 5 minutes.
- The customers can enjoy the loan at an amount as low as Rs.1500.
- The loan amount has no maximum limit.
- It offers prepayment of loan option to the applicants without any charge.
- Simple loan application process involving minimal documents.
- The gold, against which the loan is taken, can be valued in the safety of the house of the applicant.
- Quick loan disbursal process increases customer relations
- The gold ornaments of the applicants are stored in a safe environment.
SBI Gold Loan
State Bank of India is also one of the leading gold loan providers in the country. They offer loan to the applicants in exchange of gold items like gold ornaments, gold coins etc. at very competitive interest rates. Let us have a look at the features of SBI Gold Loan:
- Simple loan offering procedure.
- Comparatively less paperwork required.
- Minimum loan amount is Rs.20,000 and maximum loan amount is Rs.20 lacs.
- Any person with a fixed monthly income like pensioners, bank employees can take up this loan.
- Lower interest rate on the loan granted
- Gold loan is offered to anyone above the age of 21 years.
- It accepts security of gold ornaments like gold coins, gold jewellery etc.
- Nominal loan processing fees is levied.
The above were the benefits of Gold Loans from each institution and the following table provides a comparative analysis of both the loans for a bird’s-eye view.
|Points of analysis||Muthoot Finance Gold Loan||SBI Gold Loan|
|Loan variants||The company offers gold loans in 8 different type of variants||Only one type of Gold Loan is available with the bank|
|Rate of interest||Interest rate ranges between 14% to 24%||Interest rate remains constant at 11.20%|
|Minimum loan||Minimum loan amount is Rs.1500||Minimum loan amount is Rs.20,000|
|Maximum loan||No maximum loan amount limit||Maximum loan amount is Rs.20 lacs.|
|Repayment tenure||The loan can be repaid within 7 days or within a maximum of 12 months||Repayment period of 30 months or 36 months is available depending on the nature of the loan|
|Evaluation of Gold||In-house evaluation of gold possible.||No in-house gold evaluation done.|
Now you know why these two Gold Loans are placed in the leading spots. Gold is not bought on a daily basis so why not do a detailed study beforehand and then opt for the best gold loan plan that would suit the needs and requirements of the applicants? The benefits of the leading plans are discussed above and you can make an informed decision. So now, secure your gold in the best possible hands and enjoy the benefits of the loan which is easily available, has lower interest rate and can be put to multiple uses.