Manipal Fintech Blog

Category: Interest Rates

  • All You Need To Know About 24k, 22k and 18k Gold Purity

    All You Need To Know About 24k, 22k and 18k Gold Purity

    Most of us are not aware of gold purity standers. Even we have probably purchased gold at some point in our lives, either for jewellery or as a potential investment. If you’ve ever bought gold, you’ve probably heard the term “karat.” Have you ever wondered what the distinction between jewellery made of 22Kt, 24Kt, and 18Kt is? Are you trying to decide which one to buy as an investment? Well, your quest ends here. We have curated a simple, go-to guide on how what these differences stand for and how they can affect you. You can thank us later!

    Karat or ‘k’- What is that?

    Before we get any further, let us first know what karat or kt means and stand for. It is a term that refers to how pure gold is. It is scored between 0 and 24. Thus, 24K gold is the purest gold that can be purchased.

    Gold is a highly malleable or flexible metal. Thus, to make jewellery, other metals including copper, nickel, silver, and palladium are added to the formula. As a result, it can be better said that karat is a measurement of the proportion of gold to other metals or alloys.

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    Different types of gold according to purity

    When it comes to gold purity, there are two main types: 22k gold and 24k gold. Other variants such as 18k, 16k and 14k also exist. However, jewellery of 22k and 24k are favoured the most over the latter three. Here are the basic distinctions between these varieties:

    24 Karat or 24K Pure Gold

    24k or 24 karat gold is the purest form of gold. This indicates that the gold is entirely composed of pure gold with no traces of any other metals. Gold that is 24 karats pure or above is recognized to have a distinctive brilliant yellow hue.

    Since 24k gold is the purest available, it is always more expensive than 22-carat or 18-karat gold. This form of gold has a far lower density than gold with a lower karat, though. With no other metal to fortify it, 24-karat gold is more malleable and softer than lower karats. Therefore, it is unsuitable for fine and delicate jewellery types.

    22 Karat or 22K Gold

    Jewellery marked with a 22-karat gold content often means that 22 per cent of the jewellery is made of pure gold and the remaining 2 per cent is made of an alloy of gold and another metal. Jewellery frequently uses gold that is 22 karats pure. Various metals, including silver, zinc, nickel, and other alloys, make up the remaining 8.4%. By incorporating additional metals, gold becomes harder, increasing the strength and longevity of gold jewellery. This karat of gold is also referred to as “916 gold” since it is 91.67% pure gold.

    18 Karat or 18k gold

    75 per cent gold and 25 per cent other metals, like copper, silver, etc., make up 18-karat gold. Typically, jewellery with stones is made of 18-carat gold. When compared to 24-carat and 22-karat gold, this type of gold is less expensive. Gold that is 18 Karat pure has a slightly dull gold hue.

    24k, 22k or 18k gold- Which one should you go for?

    If you are opting to buy gold as an investment option, buying 24k or 22k gold is the best option. 24k and 22k are best preferred by banks as collateral in case you want to pledge your gold to acquire a gold loan to help fund an emergency. However, certain gold loan providers like Manipal Fintech Gold loans do accept gold between the purity of 18k to 24k and provide low gold loan interest rates.

    If you own gold assets and are considering a loan, choosing doorstep services can provide you with a seamless and efficient borrowing experience.

    If you own gold assets and are considering a loan, choosing doorstep services can provide you with a seamless and efficient borrowing experience.

    Apply for a gold loan 24/7 on www.manipalfintech.com, or call at 18003098440

  • 9 Reasons Why You Should Take Gold Loan

    9 Reasons Why You Should Take Gold Loan

    Gold is an important asset class that has fascinated humans for centuries. Even the central banks hold large reserves of gold against their currency. It gives you a fair idea of the importance of gold as an investment. Gold is an appreciating asset, its value increases with time. Most people possess gold in some quantity as jewellery or coins. Gold is usually not sold unless the reasons are very compelling. How do you utilise the idle gold lying at home in an emergency? Assuming you do not have any other liquid assets to spare, can you look at gold as an option to raise funds? No, we are not talking about selling your precious jewellery. However, you can apply for an instant gold loan by using your gold as collateral.

    Benefits of Instant Gold Loan

    There are several reasons to consider an instant gold loan when the need for funds arises. Any Indian citizen or resident between 18 and 70 years of age is eligible to apply for an Instant Gold Loan. Let us analyze a few important ones.

    • Putting idle assets to good use
    • Lower interest rates
    • Quick loan in minutes
    • Minimal paperwork
    • Flexible repayment plans
    • Safety for your collateral
    • Encrypted systems that provide data privacy
    • No impact of low credit scores
    • Great customer experience

    Putting Idle Assets to Good Use

    An Instant Gold Loan helps you put your idle gold to good use in the case of an emergency. The gold loan process is simple. Instead of borrowing from family or friends, you can mortgage your gold to get a loan for your business, children’s education, medical emergencies etc. Once you pay off the loan with interest, you can get back your gold.

    Lower Interest Rates

    As secured loans, Instant Gold Loans are available at low-interest rates. Gold Loan interest rates are quite reasonable. Hence, it becomes more appealing to go for a cheap gold loan at around 8-12% per annum compared to paying 15-24% on unsecured personal loans. If you have gold lying unused at home, this is the best way to use it. Similarly, you can resist the urge to swipe your credit card for big-ticket purchases. Credit card companies charge 2.5-3% per month when gold loans are available at as low as 0.67% per month.

    However, the selection of lending partners is extremely important for a customer to not fall in the trap of jumping interest rates. These loans are available at very low interest rates (0.35 to 0.50% p.m.) but with a jumping interest rate which means the customer ends up paying something in the range of 15-24% i.e. the same as a personal loan.

    At Manipal Fintech, we value our customers and offer loans without any jumping interest rate. So what you see is what you get.

    Quick Loan in Minutes

    Instant Gold loans are processed in quick time. Once you fill in the details on the Manipal Fintech website, an officer will visit your home. He will complete the gold valuation and documentation. Once the documents are verified the gold will be placed in a tamper-proof sealed bag and the loan disbursement will take place. The gold will then be deposited in a bank branch nearest to you.

    Minimal Paperwork

    Unlike other loans, gold loan processing is simple. It does not involve complicated paperwork. As gold is offered as collateral, documentation regarding valuation needs to be completed. In addition, the following documents would be needed –

    • Passport size photograph
    • Identification proof – PAN Card, Aadhaar Card, Driver’s License, Passport/ Voter ID/ Ration Card (Any one of them)
    • Address Proof – Aadhar Card/ Voter ID/ Driving License/Utility bills not older than 3 months/ Lease Agreement

    No further documents are required.

    Flexible Repayment Plans

    You can get the best gold loans from lenders like Manipal Fintech. They offer a slew of customer-friendly repayment plans. Depending on your convenience, you can make the interest payment on a monthly basis and repay the principal at the time of closure. Alternatively, you can repay both interest and principal in a single instalment at the end of the loan tenure.  A third option is to take an overdraft gold loan where interest will be charged on a monthly basis depending on the usage.

    Safety for your collateral

    When you apply for an Instant Gold Loan, choose a trusted lender. Since you will be handing over your gold to them as collateral, you would need to confirm the safety precautions taken to protect your asset. At Manipal Fintech, several steps are taken, to ensure the safety of the gold and provide peace of mind to the customer. The gold is valued and sealed in your presence in a tamper-proof pack. It is stored in the strong room of your nearest bank branch. Whenever you close the loan, your gold is returned intact to you. When you book an appointment with Manipal Fintech, the picture and details of the executive are shared via SMS. You can match the same with the ID shown by the executive to confirm authenticity.

    Encrypted systems that provide Data Privacy

    All digital platforms need to maintain the data privacy of the customers. Gold lenders adhere to these regulations as well. Manipal Fintech has secure encrypted systems to protect the customer data which are collected via paper /digital mode. The information regarding the gold collected from customers is also stored securely.

    No Impact of Low Credit Scores

    Unlike personal loans, where CIBIL score plays an important role, it is not a very important parameter in case of instant gold loans. Since gold loans are secured loans, the need to have a decent credit score does not arise. The loan is backed by the gold provided. In case of a default, the gold can be sold to pay off the loan.

    Great Customer Experience

    Getting an Instant Gold Loan is so easy in the digital age. You can call Manipal Fintech on 1800 309 8440 or request a callback on the website. A Manipal Fintech executive will reach your home, value the gold, complete the documentation and disburse the loan after depositing the gold in the safety vault of your nearest bank branch. In case of an emergency, this could be a real saviour as you do not have to depend on anyone else. Once the loan is repaid, you can get back your gold. So, you do not have to move from your seat to get a gold loan, literally!

    To Wrap Up

    Instant Gold loans are a convenient mode to raise funds. They are easy to process and require minimal documentation. There are no demands of a decent credit score since the loan is backed by gold. Moreover, it gives you a good opportunity to make use of the unutilized gold lying at home when you need funds for an important purpose. Instead of opting for more expensive personal loans or credit card debts, it is prudent to obtain a loan against the gold. Manipal Fintech offers convenient instant gold loans and charges the lowest gold loan processing fees in the industry.

    You can visit https://manipalfintech.com/ for all information regarding the Best Gold Loans, and we will be glad to assist you.