IIFL vs Muthoot vs Manappuram Gold Loans
Gold loans are an extremely popular form of lending in India, all thanks to the ease of borrowing, a flurry of lenders - Both organized and unorganized, solid collateral value, and a good secondary market.
This form of lending is expected to do even better in the future considering the fact that India’s economy is growing, and business now more than ever are in a need for fund injection, and what better way to secure loans when gold loans offer quick funding at a low interest rate. And modern lenders like IndiaGold offering customer centric gold loan solutions being the cherry on top!
There are several lenders, but only a few best gold loan providers in India, each offering a unique proposition targeting a specific market segment. Let's discuss these major players ahead and a comparison of gold loans offered by them!
IIFL Finance
IIFL Finance is amplifying their lending products on the back of their solid market presence. The company has a reach in many different lending categories, and other financial products. This gives them an edge over the competition as they are in a position to leverage their goodwill, and experience across various sectors to boost their positioning in the gold loan market. IIFL also boasts a wide branch network which enables them to cater to customers all across the country.
IIFL gold loan offering is among the most well positioned in the market with stand-out features such as:
- Minimum Documentation
- Quick Loan Approval
- Low Interest Rates
- Secured and insured gold
IIFL also offers one of the best gold loan interest rates and low cost loans, with their loan commercials as follows:
| Interest Rate | 0.99% onward p.m. (11.88% - 27% p.a.) Rates varies depending on scheme availed | | :---: | :---: | | Processing Fee[1] | As per Scheme Construct | | Penal Charges (w.e.f 01/04/2024) | 0.5% p.m (6% p.a) on outstanding due amount[2] | | MTM Charges[3]* | ₹500.00 | | Stamp Duty and other statutory charges | As per applicable laws of the state | | Auction Charges*# | ₹1500.00 | | Overdue Notice Charges*# (w.e.f 07/03/2024) (Once in 90 days) | ₹200 per Notice | | SMS Charges* | ₹5.90 per Quarter | | Part-Payment Charges | NIL | | Pre-Closure Charges | NIL Minimum of 7 days interest will be charged if loan is closed within 7 days |
Muthoot Finance
Muthoot Finance is among the leading lenders in the country. The lender boasts a serious branch network and most impressively a huge list of gold loan offerings designed for all sorts of borrowers. Muthoot finance definitely has an edge over the competition all thanks to their army of customer representatives, customer centric offerings, and consistently ranks high in the customer satisfaction. One of the biggest contrasts when comparing IIFL gold loan vs Muthoot Finance gold loans is the number of product offerings under different categories by Muthoot Finance.
Following are the offerings under the broader Muthoot Gold Loan umbrella:
| MUTHOOT FINANCE | Muthoot Finance Interest Rates | Loan Amount | | ----- | ----- | ----- | | Muthoot One Percent Loan | 12% p.a. | INR 1,500 to INR 50,000 | | Muthoot Ultimate Loan | 22% p.a. With 2% rebate if 100% interest paid | Starting at INR 1,500 | | Muthoot Delight Loan | Lower Interest Rates offered | INR 50,000 to INR 5 crores | | Muthoot Mudra Loan | 11.9% p.a. | INR 1,500 to INR 1 lakh | | Muthoot Advantage Loan | 18% p.a. | INR 50,000 to INR 5 crores | | Muthoot High Value Plus | 14% p.a. | INR 1,90,000 to INR 5 crores | | Muthoot High Value Loan | 15% p.a. | Starting at INR 50,000 | | Muthoot Business Loan | 10.5% p.a. to 12.9% p.a. | INR 5 lakhs to INR 5 crores | | Best Value Scheme | 14% p.a. | INR 50,000 to INR 5 crores | | High Value Retention | 10.9% p.a. | INR 10 lakhs to INR 5 crores |
Manappuram Finance Limited
Manappuram has been at the forefront of the gold lending market. The company has done remarkably well when it comes to building a large branch network, creating lasting impressions in the market, and an active effort in providing the best customer service and gold loan products to the customers. Manappuram currently offers a straightforward and easy to understand gold loan proposition as opposed to a flurry of products offered by some competitors. The charges on the loan are also at par with what is being charged in the market.
Following is a detailed information on charges associated with borrowing form Manappuram Finance Limited:
| Charge Type | Details | | ----- | ----- | | 1. Processing Fee | ₹10 per pledge at loan settlement. For repledges, an additional 0.007% (excluding tax) of the loan amount at the time of settlement. | | 2. Penal Interest | 2% per annum applied if the loan tenure is exceeded. | | 3. Security Charges | Based on loan amount: | | | Up to ₹10,000 - No charge | | | ₹10,001 to ₹50,000 - ₹15 | | | ₹50,001 to ₹1,00,000 - ₹30 | | | ₹1,00,001 to ₹1,50,000 - ₹45 | | | ₹1,50,001 to ₹2,00,000 - ₹60 | | | ₹2,00,001 to ₹5,00,000 - ₹75 | | | Above ₹5,00,000 - ₹95 | | | Note: Charges may vary in specific states (Kerala, Tamil Nadu, Telangana, Andhra Pradesh, Karnataka). | | 4. Auction Charges | Printing & Stationery - ₹6 | | | Advertisement Charges - ₹160 | | | Transportation - ₹44 | | | Insurance - ₹25 | | | Charges Paid to Auctioneer - ₹35 | | | Postage (each instance) - ₹30 | | | Expenses for Sorting, Litting, etc. - ₹160 | | | Total Auction Charges - ₹460 per pledge | | 5. Other Charges | Ordinary Letter - ₹5 | | | Registered Letter - ₹30 | | | Cheque Sending Charge to Auction Surplus Customers - ₹50 | | | Delivery of Statement of Account - Free within 30 days, ₹25 after 30 days | | | Form K Settlement Charges - ₹75 for first instance, ₹100 for subsequent instances | | 6. Stamp Duty (For Fresh Pledge) | Rajasthan - 0.325% of loan amount + applicable surcharge | | | Karnataka - 0.5% of loan amount for loans ₹1,00,000 and above | | 7. Loan Tenure & Eligibility | Tenure: Typically 3 months. Eligibility: Individuals aged 18 years and above, owning 18 to 24-karat gold ornaments. | | 8. Interest Rates | Base rate: 14% p.a., with an additional risk premium ranging from 3% to 12% based on the loan-to-value ratio. | | 9. Loan Amount | Loan amount: ₹1,000 to ₹1.5 crore, above ₹1.5 crore requires special approval. | | 10. Repayment | Interest to be serviced periodically. Principal can be repaid at the end of tenure. No prepayment penalties.
