Getting a loan is always a tedious task, well, not if you have enough Gold to pledge and you approach Muthoot Fin Corp for your needs. The company has introduced what is called as ‘Express 3 minute Gold Loans’ through which loan seekers can get their loans sanctioned in, well, 3 minutes flat.
The minimum weight of gold required is 2gms and minimum loan amount will be Rs.500 (there is no maximum amount). If you take a gold ornament which includes materials other than gold, such as stones, it will be removed from the gross weight of the ornament and effective weight will be calculated.
Loan will be granted up to 90% of the Gold value (at prevailing rate) and this can be taken for periods of 6, 12, 18, 24, 30 and 36 months time frame. For repayment, there is an option for EMI too. However, this EMI is not fixed and hence, if the customer wants, he can pay all the amount (or any amount he wants) at a time to reduce the interest burden.
Interest on the loan under this scheme is as follows (see update below):
6 months: 14.23%, 12 months: 13.47%, 24 months: 13.45% and 36 months: 13.74% (and a 1 time service charge up to a maximum of Rs.75 for loans of over Rs.50000 will be charged).
If the EMI is not paid in time, a penalty of 2% of EMI will be charged for first month and at 5% for the next unpaid months. If the customer fails to repay the loan after 15 months of the term period agreed upon, the gold pledged will be auctioned.
Sample EMI for Rs.100000 loan under this scheme is as follows:
12 months term: Rs.9456 per month
24 months: Rs.5288
36 months: Rs.3924
All that the customer needs to produce is a valid ID card (and of course the gold to be pledged) to get the loan in cash immediately across the counter.
Update: Interest rates are subject to constant revision by the companies according to RBI policies. So you must check with Muthoor Fincorp (atleast its website) to know the latest interest rates.