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Gold Loan Eligibility: What You Need To Know

In the long run, India’s economy is poised for a boom. The rising Indian economy will lead to a spike in gold demand. This is mainly because of high-income levels that go hand-in-hand with a strong demographic dividend. 

However, India faces a few challenges in the short term. With declining household savings rates and agricultural wages, Indian gold demand is not as strong as it could be. 

In 2022, there is a strong likelihood that the economy will be prospering, and people will have a keen interest in purchasing gold. However, any future outbreak of the coronavirus could create uncertainty.

Gold is a precious metal that can be used as a trading instrument and can readily be converted into cash. 

Thus, when an emergency arises, or you need urgent cash to meet your financial needs, you can take a loan against the gold held by you.

Eligibility Criteria for Gold Loan

There are many different gold loan providers out there, and each one has a different set of gold loan eligibility criteria. 

Muthoot FinCorp, one of the trusted lenders, offers a gold loan that is designed to meet the specific needs of customers. 

To meet its gold loan eligibility criteria, an individual will need to follow the below-mentioned criteria:

  1. Residence & Age:

With Muthoot FinCorp, any resident Indian Citizen between 21 – 65 years can apply for a gold loan. 

  1. Purity of the Gold:

If you want to take out a Muthoot FinCorp gold loan, the gold you are giving as collateral must be 18-24 karat in purity.

  1. Loan to Value (LTV) Ratio:

Muthoot FinCorp provides gold loans with an LTV ratio of up to 75%. This means that an individual can get a loan amount up to 75% of the value of their gold.

  1. Loan Amount:

Muthoot FinCorp offers gold loans that are determined by the purity of the articles, the weight of the articles and the current market value. The maximum loan amount an individual can get is Rs. 50 Lakhs.

Documents Required for Gold Loan

Once individuals fulfil the gold loan eligibility criteria, they can submit the necessary documents. 

The documents required with the Muthoot FinCorp gold loan are:

To verify your identity, you can upload any of the documents, PAN card, Passport, Driver’s licence, Aadhar card, Voter ID card, or Government-approved photo-ID proof.

To verify your address, you can upload any of the documents, Utility bills like electricity or water bills, Aadhar Card, Voter’s ID, Rent agreement, or Bank statement.

The best part about Muthoot’s gold loan schemes is that you are not required to submit any credit score or income proof. This makes it incredibly convenient for customers as it minimises the time spent on submitting documents.

With Muthoot FinCorp, approval is immediate, and the money is processed within 30 minutes upon receipt of your documents.

Process of Getting a Gold Loan 

Muthoot FinCorp has made the process of applying for a gold loan easy and swift. 

The process is as follows:

  1. Visit the website/download the Muthoot Blue app. Fill in your details and the gold you want to pledge.
  2. With the help of a gold loan calculator, check your eligibility, interest rates, and tenure of the loan. The calculator will help you find the details of monthly payments that you might have to pay under different schemes. 
  3. Choose from a range of schemes, which are provided by the calculator as per your needs.
  4. Visit a Muthoot FinCorp branch, where your gold will be verified, weighed, and examined.
  5. After this, you can take home the funds instantly.


Gold loan is a popular loan product in India. One of the most important and common reasons why people take a gold loan is to fulfil their emergency needs. People use gold as collateral to get loans. This is due to the trust and security they feel while dealing in gold. 

More and more people are taking gold loans nowadays because of their lower interest rates and flexible terms. 

Gold loans may be perfect for people who need a little help to fulfil their goals, but not everyone will qualify for a gold loan. 

Thus, make sure to check eligibility first before applying. Once you have checked your gold loan eligibility, apply for your gold loan today!

Here at Muthoot FinCorp, we believe in empowering you to build your future. We offer gold loans that give you affordable financing for all your needs, from an emergency to buying a new car to your wedding.

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