Detailed Explanation on Choosing The Best Gold Loan Company In India

Mar 31, 2020

Detailed Explanation on Choosing The Best Gold Loan Company In India

The gold loan market has seen a rise in regulation over the years, which has led to an increase in the number of NBFCs offering gold loans in India. Because of this, there is no shortage of options to choose from. 

Making this choice can impact your gold loan as different companies and banks have different offerings. For example, the interest rate levied on a gold loan varies across lenders, who set their own interest rates. The loan-to-value (LTV) ratio and security measures can also differ. These are both equally important. The LTV plays a deciding factor in the loan amount you’ll receive, and the security measures a company offers ensures the safety of your ornaments.

These differences have the potential to sway borrowers towards gold loan transfers for better interest rates, higher LTV, and greater safety for their gold with gold loan companies that offer more value. Thorough research of all the different companies can help you decide which is the best gold loan company for you. 

Choosing a gold loan company

Whether you are looking to apply for a gold loan or avail a loan transfer, there are a few key factors to consider about the company you choose for it. This can help ensure that you secure the best gold loan for yourself. Apart from LTV, interest rate, and security, you must consider the available repayment schemes as well.

A loan can be difficult to repay if the tenure doesn’t fit your financial standing and monthly expenditure. Which is why it’s important to plan ahead and choose a company that offers flexible repayment options. This can prevent the occurrence of defaults on payments. The best gold loan companies offer loan tenures beyond the standard of 12 months to help borrowers complete the repayment on the full gold loan amount on time.

Gold loan lenders in India

Having understood what to look out for to identify the best gold loan company, the next step is to assess the best options in the market and their services and offerings. The most well-known and leading gold loan lenders in India are:

  • Muthoot Finance
  • Manappuram Finance
  • IIFL
  • HDFC Bank
  • Rupeek Fintech Pvt. Ltd.

Amongst these gold loan companies, the differences in services and products are quite varied. Of these five lenders, only Manappuram Finance and Rupeek exclusively deal with gold loans, while the other companies offer other various types of loans as well. This factor also plays a role in the quality of loan solutions offered. For example, Rupeek’s high focus on providing gold loan solutions enables it to offer more flexibility and provide other gold loan products like an overdraft facility. 

The table below draws a comparison between various gold loan lenders, including NBFCs, pawnbrokers, and banks across India.

Theme Feature Rupeek vs. NBFC (Manappuram, Muthoot, IIFL) vs. Pawn Broker vs. Bank (HDFC Bank)
Service Related Personal Service Highest High High Low/Medium
Doorstep Services Yes No (branch only) No (branch only) No (branch only)
Convenience Highest High High Low/Medium
Privacy Highest None None None
Preferred Location Highest None None None
9am-7:30pm, 6 days per week Yes Almost (10am-6pm) Yes, usually 7 days/week from 10am-8pm No
Stress/Hassles Lowest Medium Low High
RBI approved Yes Yes No Yes
Bank partnerships Yes No No Yes
Loan transfer/takeover Yes No No No
Disbursal time Immediate Immediate Immediate Slow
Time saving Highest High High Low
Money saving Highest Medium High Low
Easy application Highest High Highest Low
Quick service High High High Very Low
City coverage High High High Very Low
Branches NA (Medium basis partnered) High Highest Low
Consistency Highest High Very Low Low
Staff Highly trained Trained Proprietorship Poor, off role
Financial Product Related Savings High Low Very Low Highest
Low interest Yes No Strong No Strong yes
Hidden/processing charges No Yes/Sometimes Typically yes
High per gram rate Yes Yes Yes No
Monthly payment Optional Optional Optional Typically Yes
Tenure Good Varying basis player Varying Longest
Product basis requirements Good Good Poor Poor
Process Related High documentation No No No Yes
New customer account creation Quick Avg. Slow
Transparency Highest Low Low High
Insurance Yes Yes No Yes
Loan Cycle Related Doorstep release Yes No No No
Part release option Yes Yes Yes No
Doorstep part release Yes No No No
Online renewal Yes Sometimes No No
Enhancement/Top up Dedicated Quick product Typically yes but not always seamless Yes No
Interest payment Online Branch + online Branch Branch + online
Interest reminders Yes Yes but fails often No No
Customer queries Dedicated channels with high addressal rates Poor Poor
Jewel views Yes No No No
App & Website Yes Yes No Typically yes
Safe storage of jewels Highest High Poor Highest
Jewel damage Covered if responsible No No
Auction Low/Lowest High Low
Always available tech platform Highest Average NA Average
Auction stress Low High High Low

Rupeek for gold loans in India

Rupeek is dedicated to creating the best gold loan experience in the market for all borrowers with doorstep services. Rupeek’s gold loan solutions offer the highest value for a customer in every regard, with the lowest interest rates in the market, fastest loan disbursal, and highest LTV.

The safety of every customer’s gold ornaments are also guaranteed with a 100% insurance cover, and data security is secured with 256-bit encryption and multiple threat mitigation strategies. Rupeek lending partners include leading banks in the country, like ICICI Bank, Karur Vysya Bank, and Federal Bank, where ornaments are stored in high-grade secure vaults.

Moreover, Rupeek’s offers the most ease of convenience with an online gold loan process, mobile application, and doorstep services. This ensures that borrowers never have to face the hassle of long queues and lengthy waiting periods throughout the gold loan procedure.  Overdraft facilities are also made possible with Rupeek Quick. With this, borrowers can pledge gold once and avail a loan as per their needs, paying only for what they use. 

Rupeek’s products are also tailored to meet all requirements – business, personal, and even emergencies. Get in touch with Rupeek for the best gold loan experience.

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