After their successful stint at the regular gold loan business Muthoot Pappachan Group has introduced another way to get gold loan and repay it just like a regular personal loan.  It is called Muthoot Smart Plus Gold Loan.  This works just like a personal loan but the only difference being you are pledging your gold to get the loan unlike the personal where you don’t pledge anything.  You can pay in EMIs from 6 months to 36 months just like a personal loan.  Muthoot Smart Gold Loan can be availed by anyone who can show their identity proof along with the gold to pledge for.

This was also known as Smart 3 minute gold loan.  It is named in such way to remind us on how quickly we can get the gold loan from them.

Regular Gold Loan:

Before explaining how Smart Plus Gold Loan works, we will see how the regular gold loan works, i.e., you pledge the gold jewellery, gold coin or gold bar at Muthoot Fincorp where they will offer you up to 90% of the gold value as loan.  After getting the loan you will need to pay them monthly interest as long as you repay them the entire principal amount back to them.  This way you can get urgent cash and pay only the interest for the cash you took and repay the principal amount back when you get the same back.

But this sort of loan can be ideal for businessmen or those who can rotate money and get it back soon and thus can repay it.  But for the regular salaried class this type of loan cannot prove to be effective as in case of needing cash they can get it and repaying it fully will not be possible and thus such class or anyone who cannot afford to repay the entire principal amount fully.  This is where the personal loan comes into force.  But the interest rates for such personal loans can be very high.

Smart Plus Gold Loan:

This is where the Muthoot Group’s latest entrant Smart Plus Gold Loan comes into the scene.  Now if you own some gold ornaments, you can just get it to any one of the 850+ branches of Muthoot Fincorp and get up to 90% of the value of it as loan.  Now you have the option of paying it back in 6 to 36 months EMI (equated monthly installments).  The interest rate for this Smart Plus Gold Loan is also reasonable when compared to the regular personal loans.  The actual interest rates comes to around 13.47% for a 12-month scheme.

You can thus pay your monthly installments and finish off your entire principal and interest within the specified months and get back the gold that you have pledged.  You can pay the EMI at any branches of Muthoot Fincorp.  There is a rebate of 2% at the end if all the payments or EMIs are made promptly throughout the entire loan tenure.

Benefits of Muthoot Smart Plus Gold Loan:

  • Paying in EMIs.
  • EMI is prepared in such a way that major chunk is booked for paying the principal.
  • Partial release as well as foreclosure is acceptable.
  • There are no foreclosure charges.
  • There are also discounts for those who make prompt payments.

Documents Required:

Proof of identification such as passport, PAN Card, Election Card, driving licence, etc.  No additional documents are required or any securities or cheque leaves are required to avail the loan unlike the banks which asks for these to approve the personal loans.

But if you don’t repay the EMI continuously for 6 months your gold will be put up for auction.  To know more details about the Muthoot Smart Plus Gold loan, call Muthoot Group Helpline Number at 1800 102 1616.