Gold loan: Repayment schedule.

In the market, there are many other types of loans that are similar to gold loans. These loans fulfil a similar purpose to provide the borrower desired cash easily. Afterall, every loan still has some advantages and disadvantages. However, gold loans scores above them in some points, since it is always a secured loan that is availed against collateral like gold ornaments.

Especially due to this reason it makes one to easily repay gold loans because the collateral enables the lenders to give you a loan at a lower interest rate (Gold Loan Interest Rates) as compared to other types of loans. Gold loans are easier to process and grant, lenders provide different ways of repaying the loan. These ways are discussed here:

• Pay interest as EMIs and Principal later: By this option you can pay the interest amount in accordance with the EMI schedule of the gold loan and the principal amount is to be paid, in full, later at the time of maturity. This is a great option for the borrowers as some are liable only to pay the interest throughout the loan tenure and need not worry about the principal payment.

• Make Partial Payments: You, as and when you desire, can make partial payments of booths interest and principal amounts. To act in accordance with the EMI schedule is not necessary in this kind of repayment schedule. Now this is a customer-centric approach if s/he repays the principal initially, then the total interest pay-out is bound to reduce.

• Bullet repayment: in this kind of method, you have to pay the entire amount, the interest and the principal amount at the end of the loan’s term. You no longer carry the EMIs on this sort of time table payment, simply pay the complete quantity in a single shot, hence the term bullet repayment. Also, in this repayment mechanism, though the payment, along with the principal repayment, becomes due only at the end of the term yet it is calculated each month.

• Regular EMI option: as per the salaried class, this option is for those people who receive cash in their bank account monthly. In this repayment, the EMI amount includes both, the interest and the principal amount. As it is going to salaried borrowers, the granting of this loan is a quick process.

For this kind of schedule you are suggested to apply now for HDFC Gold Loan, http://SBI Gold Loan.

Also Read:- How To Apply For A Gold Loan Online