Your Complete Guide to Gold Loan Renewal Process

Indians have always enjoyed a strong and special bond with gold. Not only as an asset class for investment purposes but also as a security in times of financial difficulties. A gold loan is an excellent way of meeting short-term financial needs. This is the reason the gold loan business has seen exponential growth in the last few years. Customers appreciate the fact that their unutilized gold could generate value in times of need without having to sell them. The fact that their valuable items are securely kept in lockers with round-the-clock CCTV surveillance and with proper documentation, gives them peace of mind. There has been a spurt of gold finance companies to meet the ever-increasing demand for gold loans. Most banks and Non-Banking Financial Companies(NBFCs) offer gold loans. The only difference could be the gold loanprocessing fee and/or the specific terms and conditions for gold loans. But if there’s one lender that takes the cake among the many gold finance companies in India, it is Muthoot Finance. The trust it has built over the years through ease of doing business and exemplary customer service is unparalleled. Muthoot is known for its simplified documentation, attractive interest rates, and quick disbursals. You can avail of an instant gold loan online at Muthoot Finance or by visiting your nearest branch. 

The processing fee for the gold loan from Muthoot is also quite competitive. Should you require more funds after full repayment of your existing gold loan, you can easily apply for renewal of your gold loan.Muthoot’s gold loan renewal process is seamless and hassle-free. Muthoot Finance’s gold loan renewal online is superfast, with just the click of a button. Although the renewal of a gold loan is quite simple and transparent, it is important to fully understand the gold loan renewal process. Renew your Muthoot gold loan after going through the terms and conditions, services charges, documentation, FAQs, etc on the website at 

Let us take you through the process of applying for a gold loan from Muthoot as well as the renewal of a gold loan.

How to Apply for a Gold Loan from Muthoot

There is no doubt that Muthoot Finance is the leading gold loan finance company in India. Since a gold loan is an effective, easy, and hassle-free way to meet a sudden financial requirement, Muthoot has made the application process quite simple and transparent. You can either visit your nearest Muthoot Finance branch or avail of a gold loan instantly online. 

I Need More Funds, What Should I do?

A gold loan is taken out to service short term financial needs. It is possible that you might feel the need for further funding through a gold loan. In this scenario, you can opt for a gold loan renewal, subject to approval by Muthoot’s Risk Management Committee. Once you have repaid your existing gold loan, you can take out a new loan on the same gold articles with the same lender. A gold loan renewal process is much simpler than a fresh loan as you are capitalizing your existing financial relationship with the lender. The lender would have already done the necessary documentation, valued your gold articles and is aware of your eligibility criteria.

Things to Know Before Renewing Muthoot Gold Loan

Before going through the gold loan renewal process, you should be aware of the following conditions:

  1. The existing gold loan should be fully repaid, including both the principal and interest.
  1. The new gold loan amount eligibility shall be calculated based on LTV( Loan-to-Value). LTV ratio is measure comparing the amount of your loan with the appraised value of the pledged asset.
  1. Shortfall in the principal amount/interest, if any, will have to be remitted by the borrower.
  1. To mitigate the risks involved in gold loan renewals, the company might sanction the loan for a shorter tenure or at a reduced rate of LTV.
  1. The aggregate amount of such gold loan renewals shall not exceed 40 % of the gold loan portfolio of the Company.

The success of Muthoot Finance is built on a solid foundation of trust and transparency. For them, customers come first and they continuously try to guide their patrons to make an informed decision. Everything related to gold loans such as process, policy, service charges, and FAQs are uploaded on their website.

TIME BUSINESS NEWS                                           

TBN Editor

Time Business News Editor Team