Top Factors Contributing to the Interest Rate of Gold Loan

Top Factors Contributing to the Interest Rate of Gold Loan The interest rate is one of the most important things to consider before getting a gold loan. The loan’s attractiveness is inversely proportional to the interest rate charged by the platform. There are a number of factors that affect the gold loan interest rate that are discussed below:

Market Price of Gold The market valuation of the yellow metal is another factor that affects the interest rates charged. If the market value is high, the valuation of the gold pledged for the gold loan is high. In such a scenario, you can secure a gold loan at a lower interest rate. However, if the market value of gold goes down, it may result in higher interest rates.

Principal Loan Amount The gold loan amount that you want to avail of also affects the interest rate. Usually, a higher interest rate is charged for a low loan amount, and vice versa. So, it is paramount to assess your financial needs before applying for a gold loan.

Muthoot gold loans interest rates Finance offers gold loans at competitive interest rates to its customers. It is one of the leading NBFCs in India and offers numerous benefits, including a wide range of gold loan schemes, free insurance of pledged gold, maximum gold valuation, and a 30minute doorstep facility. By availing of the gold loan at-home facility by Muthoot Finance, customers can get a gold loan without stepping out of their house. Muthoot Finance customers can pay the monthly interest amount conveniently, which is the repayment feature offered by the platform.