How Gold Loan is Better Than Credit Card Loan

How Gold Loan is Better Than Credit Card Loan

In a financial emergency, you might need quick cash and not want to wait weeks or months for a bank loan approval. When this happens, there is always Muthoot Fincorp. One of the pioneer non-banking finance companies in our country, Muthoot has been serving its customers with speed, accuracy and customer service for over four decades now. Apart from fast approvals and 24/7 online accessibility, we also offer an array of special loans to help you out of any cash crisis. While nothing can replace personalised service from your bank branch manager, at Muthoot Fincorp, we ensure that you get the same level of assistance as a member of our family.

How is a Gold Loan Better Than a Credit Card Loan?

A few decades ago, owning gold was restricted to jewellery or industrial purposes but today, it has become one of the most excellent investment products. However, rising gold prices can be quite often a problem for those who have invested thousands of dollars for years in this precious metal. What if you need funds now? Are you simply doomed and left with no options? Of course not! Gold loans are here to rescue you from this tricky situation. Companies like Muthoot Fincorp are providing effective and safe gold loans that can help in availing quick cash at nominal rates along with a host of other facilities.

Below are few factors on how Gold Loan is better than credit cards:


Gold loans are essentially secured loans where the borrower is allowed to pledge gold as collateral. At Muthoot Fincorp, we facilitate both personal and business gold loans, only up to 80% of the value of your gold. The Muthoot fincorp gold loan interest rate are quite competitive and range from 7% p.a. to 26% p.a., depending on the tenure and repayment option selected by you.

Credit History

Credit history isn’t important for gold loans, which are secured loans. Therefore, all you need is to provide a valid ID, your address proof, and sufficient money in your account. Unlike the vast majority of loans available online in India and other parts of the world, gold loans or don’t check credit scores before offering you the best interest rates and loan options. So if you have a lower credit score, you may still get the lowest interest rates and top-notch loan deals with a collateralized loan without having to worry about your credit history score.

Quicker Loan Approval

Credit cards are quicker than gold loans when it comes to approval time. You can walk into a Muthoot Finance branch and avail of instant credit card funds within a few minutes. But, unlike credit cards, gold loans offer better rates of interest as well as simplicity in repayment.

Gold loans have entered the mainstream with many people availing of gold loans from reputed lenders. Muthoot Fincorp, a leading gold loan provider offers various variations of gold loans, including short-term, medium-term and long-term loan products. Other lenders may call their gold loan scheme something else, such as platinum scheme or diamond scheme. But they all follow the same basic principles. Muthoot Fincorp offers the lowest interest rates on its gold loans, which are easy to avail of. A lot of banks are against the idea of giving gold loans to consumers and experts believe that factors such as lack of necessary infrastructure (vaults) and cash flow problems could be contributing towards this stand.

Published by Doreen Burger

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