Muthoot Finance which is India’s largest gold finance NBFC announced this new development of offering loan against gold ETFs which is a totally new vertical and new option for the retailers like us who have recently ventured into Gold ETFs in India and getting loan against it can be even beneficial in case we need money urgently.

This new Gold ETF loan will be available initially only at the 30 branches of Muthoot Finance but will be later introduced to their other 3000+ branches across India.

This new loan against ETF can prove beneficial for those who are in need of money urgently and don’t want to sell their existing Gold ETF units held at their demat account.  The loan amount will be 85% of the total net asset value (NAV) of the Gold ETF units being held.

How you can avail Gold ETF Loan and details are yet to be announced, but I guess this will just like pledging your securities for loan which we already do for getting loans against our securities held in demat account and this is how Muthoot could offer their loans for ETFs for us.  But we will need to wait and see how it works out once they spread it across India from their existing 30 branches.

This Gold ETFs Loan can be ideal who have in fact brought on a huge chunk of units on them and don’t want to sell them right now but are in dire need of cash but it is not advisable for all due to the percentage involved here, which is around 15% for gold loans with gold exchange traded funds.

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• Is gold a good investment in India?
• The New Bank ATM Transactions Charges
• How to invest in Gold ETFs in India

For example if you have a ICICI Bank ATM Card and are going to check your balance at an HDFC Bank ATM Card and/or withdraw cash at a SBI ATM, then you can only do at the maximum of 5 transactions in a month and if you do more than that you will need to shell out bank charges for that.

ATM Bank Charges

If you do cash withdrawal at any other bank’s ATMs and it has cross the stipulated limit of 5 transactions then you will need to shell out Rs. 20 per cash withdrawal (Financial Transactions).  Similarly if you are planning to check balances or change ATM Pin, Mini Statement, etc (Non-Financial Transactions) then the charge you will need shell out is Rs. 8.50 per transaction.  This charge is over and above the minimum of 5 transactions and for those five transactions there is no charge and they are still free.  So you will need to remember each of your bank withdrawals and ATM transactions to avoid bank charges.

SMS Alert on Card Usage

Similarly, now RBI has announced special feature where each and every transaction, be that of any amount, all the banks have been instructed to send an SMS alert on the same to the account holder.  For example even if you withdraw Rs. 100 on an ATM, you will receive an SMS into your mobile stating the same.  This is done to protect the account/card holders from fraudulent usage which has become prevalent these days.  Likewise, you will receive an SMS alert even if you use your debit card at merchant establishments.  The same thing fit even for the Credit Card usage where you will get SMS alert for all your credit card usage.

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• Muthoot Finance to Offer Gold ETF Loans
• Free Software for Goal Based MF Investments
• 10 Things to Check in a Mutual Fund Scheme

Since it is a well known fact that investing in mutual funds can be fully successful if they are invested to achieve a particular goal or goals where you can just exit from any of the mutual fund schemes as soon as you have achieved the goal.  Also it is an universal known factor that the results of investing in mutual funds can be achieved via the Systematic Investment Plans (SIPs).  This new software, Franklin Templeton Family Solutions, brought forward by Franklin Templeton can help you in this regard in terms of achieving financial goals when it comes to your family needs.

Franklin Templeton Family Solutions can prove to be an excellent tool for all those who were looking for a guide to manage their goals for various needs like their kid’s education, marriage, retirement planning, house, etc.  This software is very simple to use and needs some basic personal details and you can prepare yourself a financial planning result and proceed with your financial goals accordingly.  Although most of these results will show up only the FT MF schemes you can replace them with any other schemes (but relevant schemes) of your choice from other Mutual Fund AMCs.

You can download this free financial planning and goal based planning software from here.

Related Posts:

• Muthoot Finance to Offer Gold ETF Loans
• The New Bank ATM Transactions Charges
• 10 Things to Check in a Mutual Fund Scheme

Related Posts:

• Muthoot Finance to Offer Gold ETF Loans
• The New Bank ATM Transactions Charges
• Free Software for Goal Based MF Investments