REPAYMENT OF GOLD LOAN

As gold loans are getting more recognition, the customers need to understand the reasons for the growing demand of this type of loan. There are several benefits of gold loan, such as:

•   Quick disbursement;

•   Simple process;

•   Minimal document requirement;

•   Attractive interest rates;

•   Low processing fee; and

•   Flexible repayment schedule.

After considering all the points that makes gold loan enticing, the merit which gives gold loan an edge over other forms of loan is the flexible repayment schedule (beside quick disbursement). Since gold loan are easier to process, banks and NBFCs (Non-Banking Financial Companies) provide various repayment options to the customers. Some of them are as follows:

 

1. INTEREST AS EMI AND PRINCIPAL AMOUNT IN LUMP SUM:

The customers always have the option to repay the interest as per the EMI schedule of the loan and the principal amount to be paid in full at the end of the tenure of the loan. This way the customers get time and they do not have to worry about principal repayment immediately.

 

2. MAKE PARTIAL PAYMENTS:

This type of repayment schedule allows the customer to pay part or even complete payment irrespective of their pre-set EMI schedule. If the customer feels convenient in paying the principal initially, it brings down the amount of interest to be paid by them. This gives the customers the comfort of paying as they desire.

 

3. BULLET REPAYMENT:

Some institutions even provide the customers with the facility of paying the principal amount and interest at the end of the tenure of the loan. This way the customers get to repay without any hassle in one shot SBI Gold loan. The interest is calculated every month but becomes due only at the end of the term.

 

4. REGULAR EMI OPTION:

Equated Monthly Installments, commonly known as EMIs, is a method for those who prefer to repay regularly. Repayment can be made half-yearly or quarterly, depending on the need of the customer. This method is mostly preferred by salaried applicants.

 

Customers can repay the loan by availing of any of the aforementioned methods, depending on their understanding of the expediency of the methods. The method they consider as most appropriate for them, they can go for it to repay the gold loan and after full repayment, the gold ornament they pledged at the time of their urgency will be theirs again.

 

 

 Also read:- ORIGIN OF GOLD LOAN