Manapurram Gold Loan


We Indians have a weakness for gold as it is considered auspicious and highly liquid asset. People have been buying yellow metal since ages and storing them to be used in the event of any eventuality. Although the gold can be sold, anytime and one may get the market price, but in recent times, financial institutions have come up with a scheme of giving loan against the gold and you need not have to “sell off” the gold you possess. It acts collateral against the loan amount and is returned back, once the loan amount has been repaid. Gold loan is a method of availing liquid money/ loan against the gold (ornaments, coins, etc.).

The loan can be availed for a period of 7 days upto a maximum of 3 years and can be repaid as EMI, upfront at the end of the tenure or paying only interest amount for the period and then paying upfront at the end of the tenure. The rate of interest varies depending upon the repayment method and can be in the range of 1 – 3% per month.

Any Indian citizen of 18 years or more up to 75 years is eligible for the gold loan. The amount of loan depends upon the current market price, purity of the gold and the type of jewellery pledged. The loan amount is a percentage of the current market price of the gold pledged as mortgage. It is usually 50-60% of the total value (banks can provide upto a maximum of 75% whereas NBFC may provide upto 95%, although at a higher interest rate). As with all other loans, a processing fee is applicable on gold loan plus the GST at applicable rate.

The documents required for the loan include the ITR, salary slips, PAN/ Aadhar card, past loan payment record, if any, address and identity proof and photograph along with application form and the processing fee cheque.

Most of the national and private banks provide the gold loan. Many non-banking financial companies are also providing gold loans, prominent among them are Muthoot finance and Mannapuram finance ltd.