Wednesday, July 8, 2020

What happens if a person fails to repay an HDFC Bank Gold Loan

In general, a loan amount that is lent to the borrowers for the gold articles pledged to the bank is known as a gold loan. HDFC bank gold loan offers a great deal for their clients to make use of their low-interest gold loans to meet their financial dreams. When compared with the other loans offered, HDFC gold loan interest rate is known to be the lowest of all. 


HDFC Bank gold loan offers several modes of repayments that could be chosen. Also, since gold is produced to the bank, this loan comes under the secured loan category. Thus, those with lower CIBIL score can also make use of the benefits of the gold loan in HDFC. It is to be noted that, the interest rate starts from just 10% which is much lesser than any other bank. HDFC gold loan interest rate is based on the purity of gold and tenure and the average interest is around 10.75%. One must always go through the eligibility and procedures of availing the gold loan through HDFC Bank Gold Loan Calculator. 


HDFC Bank Gold Loan


HDFC Bank Gold Loan
Due to many reasons, a client/borrower might not be able to repay the HDFC Bank Gold Loan. In such cases, the borrower has to follow certain consequences mentioned in the terms and conditions of the bank. Some of the actions taken by the bank are: 

  • Repayment Reminder: 
HDFC notifies the borrowers about the due amount that they are yet to pay. This notification could be done through either message or a letter. Sometimes, the client also receives a call for a reminder if they fail to repay. It is only wise for the borrower to pay the overdue of their loan as soon as possible, to avoid any legal actions taken by the bank. 

  • Penalty: 
HDFC gold loan interest rate would be increased with an additional penal interest when the repayment of the loan is not as per the schedule planned. This penal interest is the penalty the borrower pays for their delay in payment of their EMI to the bank. Thus, paying EMI within the deadlines is very crucial to avoid paying penalties to the bank. 

  • Auction: 
When the borrower fails to repay the HDFC Bank Gold Loan, the gold articles submitted by them would be subjected to an auction. This will be informed to the borrowers two weeks prior. If the customer cannot be able to repay, then the gold will be sold in the auction. However, if the gold is sold more than the overdue loan amount, it will be refunded to the customer within a certain period of time. 

  • Legal proceedings: 
If the auction results do not cover the overdue amount then, the bank has all the rights to do legal proceedings towards the borrower. This is done by the bank to recover the loss caused by the borrower. 

These are the actions that the bank would take on the client if they fail to repay their loan amount. But it has to be noted that, if a borrower cannot be able to repay, he can try making the bank understand if there are any legitimate reasons behind their overdue. 

HDFC Bank Gold Loan is renowned for the flexible tenure of 1 to 4 years which the client can choose according to their convenience. This reduces the burden of repayment to a great extent. Avail the services of gold loans from HDFC Bank now and live your dreams. 

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