Manappuram Finance Limited Gold Loan Guide

If you need urgent cash and own gold jewellery, a Manappuram Finance Limited gold loan can be a quick solution. Gold loans are popular in India because they offer fast approval, minimal paperwork, and lower interest rates compared to unsecured loans.

Manappuram is one of the leading NBFCs in India offering gold-backed loans. But before you pledge your jewellery, it is important to understand interest rates, eligibility, loan-to-value rules, risks, and smarter comparison options. At Saarathi.ai, we have observed that many borrowers rush into the first gold loan offer without comparing lenders, which often leads to higher interest payments.

Let’s break it down in simple terms.

About Manappuram Finance Limited

Manappuram Finance Limited is a Kerala-based NBFC primarily known for gold loans. Over the years, it has expanded into microfinance, vehicle loans, and housing finance.

Why is it popular for gold loans?

• Quick loan disbursal

• Minimal income proof required

• Loan against gold jewellery only

• Available in semi-urban and rural areas

Gold loans are their core product, contributing a major share of their lending portfolio.

What is a Gold Loan?

A gold loan is a secured loan where you pledge gold jewellery as collateral and receive funds based on its value.

The lender evaluates:

• Purity of gold

• Weight of jewellery

• Current gold market price

• RBI LTV guidelines

As per Reserve Bank of India guidelines, NBFCs can typically offer up to 75 percent of the gold’s value as loan.

Manappuram Gold Loan Interest Rate 2026

Interest rates vary depending on scheme and tenure. Typically, gold loan rates from NBFCs range between:

• 8 percent to 24 percent per annum

Important factors that affect your rate:

• Loan amount

• Loan tenure

• Repayment type

• LTV ratio

• Promotional schemes

Always check:

• Processing fees

• Valuation charges

• Late payment penalties

• Auction policy in case of default

At Saarathi.ai, we recommend comparing multiple NBFC and bank gold loan options before committing.

You can easily compare gold loan offers on Saarathi.ai to see interest rates, tenure flexibility, and processing fees side by side.

Eligibility for Manappuram Gold Loan

The eligibility is simple compared to personal loans.

Basic criteria:

• Indian citizen

• Minimum age 18 years

• Own gold jewellery

• Valid ID proof

Income proof is usually not mandatory, making it attractive for:

• Self-employed individuals

• Small traders

• Farmers

• Housewives

Documents Required

Usually minimal paperwork:

• Aadhaar card

• PAN card

• Address proof

• Passport size photograph

Gold jewellery will be evaluated at the branch before loan approval.

Loan Amount and Tenure

Loan Amount

Depends on:

• Gold purity

• Weight

• Current market price

For example:
If gold value is Rs 1,00,000 and LTV is 75 percent, you may get Rs 75,000.

Tenure

Typically ranges from:

• 3 months to 12 months

• Some schemes go up to 24 months

Repayment Options

Different schemes may include:

1. Bullet repayment
   Pay interest monthly and principal at the end.

2. EMI option
   Pay fixed EMI including principal and interest.

3. Overdraft style
   Pay interest only on used amount.

Choose carefully based on your cash flow.

If unsure, you can ask eligibility and repayment questions via Saarathi AI to understand which structure suits you best.

Pros and Cons of Manappuram Gold Loan

Advantages

• Fast processing

• No credit score dependency

• Lower rate than personal loan

• High approval rate

Disadvantages

• Risk of gold auction if default

• Short tenure

• High penal interest in some schemes

• Gold value fluctuation risk

Important Risk: Gold Auction

If you fail to repay on time, the lender may auction your pledged gold after due notices.

This is why:

• Always read the loan agreement

• Track repayment dates

• Avoid over-borrowing

You can also track your application and repayment details in Saarathi Bazaar dashboard if you apply through Saarathi.ai.

Should You Take Gold Loan from NBFC or Bank?

Here is a simple comparison:

If you want the lowest rate, comparing banks and NBFCs together is smarter than walking into one branch.

Better Alternative: Compare Gold Loans Online

Instead of visiting multiple branches, use a digital marketplace like Saarathi.ai.

Why?

• AI-based recommendations via Saarathi Recommendation Engine

• Compare 110+ lenders

• Transparent interest rates

• Faster approvals

• Paperless journey

At Saarathi.ai, we have observed that borrowers who compare at least three offers save up to 1 to 3 percent in interest cost.

You can:

• Compare gold loan offers on Saarathi.ai

• Track your loan in Saarathi Bazaar

• Get instant eligibility guidance from Saarathi AI

When Should You Take a Gold Loan?

Good situations:

• Medical emergency

• Short-term business working capital

• School fees

• Urgent household expenses

Avoid if:

• You are unsure about repayment

• You need long-term financing

• You already have high debt

Gold Loan vs Personal Loan

If you have gold, it may be cheaper than a personal loan. But always compare both options.

You can also explore personal loan offers on Saarathi.ai if you prefer unsecured borrowing.

FAQs

1. What is the maximum loan amount in Manappuram gold loan?

It depends on the value of your gold and RBI LTV guidelines. Usually up to 75 percent of gold value.

2. Is CIBIL score required?

Generally no, since it is a secured loan. However, lenders may still check basic credit history.

3. What happens if I fail to repay?

After due notices, your pledged gold may be auctioned.

4. Can I prepay the gold loan?

Most schemes allow prepayment, but check if any charges apply.

5. Is gold loan safe?

Yes, if taken from a regulated NBFC and repaid on time. Always read the agreement carefully.

Conclusion

A Manappuram Finance Limited gold loan can be a quick and convenient funding option. But smart borrowers:

• Compare interest rates

• Understand LTV rules

• Check auction policy

• Choose the right repayment structure

• Avoid borrowing more than needed

Instead of choosing blindly, discover personalized gold loan options on Saarathi.ai today. Compare multiple lenders, get AI-based recommendations, and complete your journey paperlessly with full transparency.

Disclaimer:

This article is for informational purposes only. Saarathi FinBiz Pvt. Ltd. and Saarathi.ai are not affiliated with, endorsed by, or officially connected to Manappuram Finance Limited or any other bank, NBFC, or financial institution mentioned in this content, unless explicitly stated. All trademarks, brand names, and logos belong to their respective owners. Interest rates, eligibility criteria, and loan terms may change as per the lender’s policies and regulatory guidelines. Readers are advised to verify details directly with the respective lender before making any financial decision.