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
- 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)|
|9am-7:30pm, 6 days per week||Yes||Almost (10am-6pm)||Yes, usually 7 days/week from 10am-8pm||No|
|Quick service||High||High||High||Very Low|
|City coverage||High||High||High||Very Low|
|Branches||NA (Medium basis partnered)||High||Highest||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|
|Schemes for your need – Jumping & non jumping||Yes||No (only jumping)||No (only jumping)||No (only fixed)|
|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|
|Loan Cycle Related||Doorstep release||Yes||No||No||No|
|Part release option||Yes||Yes||Yes||No|
|Doorstep part release||Yes||No||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|
|App & Website||Yes||Yes||No||Typically yes|
|Safe storage of jewels||Highest||High||Poor||Highest|
|Jewel damage||Covered if responsible||No||No|
|Always available tech platform||Highest||Average||NA||Average|
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.