Gold loans are one of the most popular ways to borrow emergency money quickly in India. You simply pledge your gold jewellery, typically 18 carat or more, and receive cash based on its value. Two big names in this field are Muthoot Finance and Manappuram Finance.
What is a gold loan?
A gold loan is a secured loan where your gold serves as collateral. You only need basic documents like Aadhaar or PAN, and the loan gets disbursed quickly. Gold loans are preferred for emergencies because they are fast, simple, and don’t require income proof if your gold is valid.
About Muthoot Finance
Muthoot Finance is the largest gold loan NBFC in India, headquartered in Kochi, Kerala. It runs more than 5,000 branches across the country and has a strong reputation for quick service and safe custody of your gold. In recent quarters, it has seen strong growth in assets under management and interest income, powered by rising gold prices and demand for secured loans.
About Manappuram Finance
Manappuram Finance was first founded in Kerala in 1949 and operates over 4,000 branches across India today. It is well‑known for offering fast disbursal and strong online services, often processing loans within minutes.
Comparison of Muthoot and Manappuram
| Feature | Muthoot Finance | Manappuram Finance |
|---|---|---|
| Minimum Loan Amount | ₹1,500 onwards, no fixed upper limit | ₹1,000 onwards, up to ₹1 crore based on gold value |
| Interest Rate Range | Starts from about 7% p.a. | Starts from 9.9% p.a. |
| Loan Tenure | From 7 days up to 36 months | From 3 months to 12 months |
| Processing Fee | Typically 0.25 - 1% of the loan amount | Typically, 0.5 - 2% of the loan amount |
| LTV (Loan‑to‑Value) | Up to 75% of the gold value | Up to 75% of the gold value |
| Disbursal Time | Within 30 minutes | Within 15 minutes |
| Online Services | Limited | Extensive 24x7 digital services, top‑up loans |
| Special Features | Doorstep gold loan service; flexible repayment, including bullet loans | Overdraft option, insured storage, instant top‑ups |
Borrowing Limits and Flexibility
Muthoot lets you take loans starting from just ₹1,500 and generally doesn’t cap the upper limit, aside from LTV rules. That makes it easier if you hold a lot of jewellery. Manappuram starts from ₹1,000 and usually caps maximum around ₹1 crore tied to valuation and branch policy.
Interest Rates and Costs
Muthoot's published rates often start at around 7% per year. Manappuram may lead slightly with rates starting at about 9.9%, depending on the scheme and location. However, actual rates vary by branch and credit profile. Manappuram tends to charge slightly more in processing fees.
Repayment Tenure
With Muthoot, you can choose very short‑term (a week) or long‑term up to three years. This is helpful if you want more time to repay. In contrast, Manappuram’s gold loans usually need to be repaid or renewed every 3 to 12 months.
Speed of Disbursal
Manappuram is known for near‑instant disbursal, often within 15 minutes. Muthoot is quick too, but usually completes in around half an hour.
Online Convenience and Added Services
Manappuram offers strong digital features that customers can apply, manage repayments, and take instant top‑up loans online at any time. Muthoot also has some digital options, but they are not as extensive. Muthoot in some areas offers doorstep service: they pick up your gold, evaluate it, and return it after the loan is repaid.
Safety of Your Gold
Both providers store your pledged gold in secure vaults. Manappuram offers insured storage, while Muthoot boasts high-rated custody standards and minimal audit issues.
Risk and Asset Quality
Gold loans in India follow RBI rules that cap LTV at 75%. This keeps risk low because lenders can always sell pledged gold if someone defaults ⋯ , and gold rarely drops more than 25% very quickly.
Industry Context and Trends
Gold loan demand has surged as people prefer secured borrowing during financial stress. Muthoot’s loan assets under management (AUM) grew by over 43% year-on-year in early 2025, hitting ₹1.09 trillion, with interest income up over 42%. Muthoot and Manappuram both saw profit growth, though Manappuram’s microfinance arm faced some stress recently.
The RBI also introduced new guidelines for gold loans, including mandatory cash‑flow checks and stricter LTV rules. Established lenders like Muthoot and Manappuram are well placed to adapt by April 2026, while smaller NBFCs may struggle.
When to Choose Muthoot Finance
- You want a larger loan amount or hold high‑value gold.
- You prefer a longer repayment time (up to 36 months).
- You value options like doorstep pickup or flexible bullet repayments.
- You are fine with slower disbursal (30 minutes) and limited online tools.
When to Choose Manappuram Finance
- You need funds immediately (disbursal in 15 minutes).
- You want a lower starting interest rate.
- You prefer full online access and instant top‑up loans.
- You expect to rollover or manage your loan digitally.
Possible Downsides
Muthoot may feel slower if you’re in urgent need, and its online tools are less robust. It may also have slightly higher interest and processing charges than some Manappuram plans.
Manappuram’s shorter maximum loan term and somewhat higher processing fee might not suit someone looking for long‑term flexibility. Its interest may rise if you extend the loan via rollover.
How to Decide
Think clearly about your needs:
- Do you need cash in minutes, or can you wait half an hour?
- Will you repay in a few months or need a longer horizon?
- Do you prefer managing everything online or visiting a branch?
- How much gold are you pledging, and do you need a large loan?
Compare actual interest quotes from local branches; you may find small differences in rate depending on location and purity of gold.
Conclusion
Both Muthoot Finance and Manappuram Finance are reliable and trusted gold loan providers in India. Your choice should reflect what matters more to you: speed and digital ease (Manappuram), or flexibility in amount and tenure (Muthoot).
If you need money right away and want online convenience, Manappuram might be better. If you need a longer loan term, higher coverage, or doorstep service, Muthoot could fit better.
Evaluate interest rates, fees, loan terms, and services at your local branch before deciding. Those few minutes spent in comparison can save you a lot of cost and stress later.