4 Different Ways Of Repaying Your Gold Loan In India - Loan Trivia


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Tuesday 28 February 2023

4 Different Ways Of Repaying Your Gold Loan In India

As a result of their lower interest rates and adaptable terms, gold loan tenure is gaining in popularity among borrowers. Up to 90% of the gold's current market value may be borrowed. Plus, the whole procedure takes less than a day to complete.

  1. Principal and interest in monthly payments and a lump sum when the loan comes due.

Making interest payments on time helps keep your gold loan's interest costs to a minimum. At the end of the loan term, you will owe nothing more than the initial principal amount. Only the interest portion of the loan's principal balance needs to be paid each month, so your EMIs won't be too large and won't be a problem to handle. This plan of repayment is ideal for startups with limited cash flow.

  1. Component Interest and Principal Repayments Occur on a Regular Basis

You agree to make payments toward the outstanding interest and principle on a regular basis, but the payments are not fixed EMIs. There are also those who want to make one large payment every few months.

  1. Option for Uniform Repayment

This is the most common method of paying back a gold loan. At the end of the loan term, you will pay back the entire loan balance, including interest and principal. Therefore, there is no requirement to make regular payments. It's easy to get your gold back from the bank once you've paid off your loan.

  1. Simple Equated Monthly Installment Plan Covering Both Interest and Principal

Using this method to pay back your gold loan is the simplest option available to you. As with other forms of loan repayment, this one is structured as a series of installment payments. When the loan term ends, you stop making the regular monthly EMI payment. Your gold will be returned to you after the loan is paid off. With this technique, you won't have to worry about missing a payment.

Most gold loans do not have lock-in or gold loan tenure periods or prepayment penalties, so you can pay them back whenever you please. 

Gold loan online payments often have very short repayment periods, seldom exceeding five years and averaging less than a year.

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