Muthoot Finance Ltd is the largest gold loan NBFC in India and maybe because they have so much money, they do not care abut customer service. This is from my personal experience and I only claim validity from that.
Those who don’t know, Muthoot group, has many loan companies. Muthoot Finance ltd, Muthoot Nidhi, Muthoot Fincorp etc. I am generally going to state the story and reasons why Muthoot is the worse loan company and why no one should approach Muthoot for loan or emi. I will simple state the reasons and you can easily skim through them.
High Interest Rate
Muthoot charges 14% interest to 25% interest rates varying from gold loans, housing loans and other EMIs. Union Bank offers 1 lakh rs gold loan for only 4% of interest where in Muthoot it goes to 25% interest. Here you can see the issue.
An article from bankbazzar also states the same interest rate for Muthoot Premier Loan and the minimum loan amount is 1 lakh. Here is another example of gold loan rate of Muthoot. This interest varies depending on the loan tenure and loan amount. However it will always be on the higher side.
Here you can start laughing now.
Muthoot Gold Hidden Rates and Fees
Not just interest rate, there are tons of hidden charges and fees. If your check bounces at the time of EMI day, you will be charged. If you miss one EMI, you will be charged 500rs or more. If you are unable to pay EMI for 2 months or more, more and more penal interest and fine will be added on that. They will say there are no processing fees, however it is also charged.
1. Security Charges
2. Processing charges
3. Service Charges
4. Documentation Charges
5. Notice Charges
6. Charges for lost tokens
7. SMS Charges
8. Auction expenses
9. Cheque re-issue charges
10. Dormancy charges
11. Part release charges
12. Transaction charges (under specified schemes)
Is Muthoot Finance is good for gold loan?
Not at all. Muthoot finance is the worse company for taking gold loan. You will get the worse interest rate and you will keep paying tons of hidden charges. You will be lucky to get that gold back.
Personal Story of Car EMI on Muthoot
My brother took a car loan from Muthoot finance. He was paying of 7050rs per month for 3 year period. A down payment of 80,000rs was paid already. Out of 50 EMIs, 33 EMIs are paid correctly. Due to some reasons, 3 EMIs came pending. These EMIs are of last year and when we visited Muthoot office to get an account statement, they didn’t mention about these check bounces.
After an year, they called us and said 3 EMIs of last year are missing and you will have to pay or we will take the car away. They called references and said we didn’t pay EMI. When I asked about this old EMIs, they are telling me that why are you talking so much, if you are decent, pay the EMIs. I told them that I will ask my brother, however they insisted upon filing a special report or something. At last I told them go fil anything, or take the car. I don’t use it anyways and its not my car as well.
What I am saying is that they know there are pending EMIs and they waited and waited for 1 whole year to pass to get that much interest and fees and suddenly out of the blue started abusing and threatening. This is why I would say it has the worse customer service ever.
Second Story: Gold Loan of Muthoot Nidhi
My friend told me this story. She gave her gold chain to her ex-boyfriend and he pawned it there. They broke up and she wanted it back. He refused to give it back and I called him. He told me the mobile number which he registered, his full name and the branch name. I called the branch and gave the details. After searching for 20 minutes, they said they are unable to find the name. They also said because its been 2 years, Muthoot might have auctioned it.
Here is loan policy of Muthoot. A gold loan has a maximum tenor of 12 months. If the money is not paid, Muthoot will issue a minimum of 14 day’s prior notice for conducting an auction. This basically mean you have one year to get it back or your gold is gone- poof!. In my friend’s case, customer support is saying a notice was issued to her ex boyfriend’s name and gold might have sold off. Here they are also not sure what happened to the gold. There is no data of such a gold loan.
As I said before this my Muthoot Loan Personal Experience Review. Muthoot group is basically looting customers and they do not care of employees as well. This is why they had to shut their shops as well in Kerala. I strongly urge people not to approach Muthoot for any kind of loan or EMI. If you do so, do it by your sole risk.