Gold Loan Clearance

Gold loans have become tremendously popular in India especially after the occurrence of the COVID-19 pandemic as more and more people are losing their jobs and they are facing one or the other financial problems on a daily basis. Gold loans are the easiest ways to meet your immediate financial needs like medical emergencies, marriage, or business deals. They are also the loans with the lowest interest rates as they are against collateral. The prices of gold have also gone high in recent days, this makes the borrowers eligible for higher rates of the gold loan per gram. Not only this, gold loans offer you flexible repayment schemes, unlike personal loans where you are required to rely only on EMI to repay the loan. Also if you decide to repay the loan before the end of its period then you will have to pay prepayment charges. Most of the banks allow prepayment of gold loans and generally, levy prepayment charges i.e. Nil after a period of 3 months.

You can pay your loans online and here's a look at four various ways to repay your loan

1.      Pay the interest in EMIs and principal amount at the end

As a borrower, you have an option to pay the interest of the loan amount in monthly installments and you can pay the total principal loan amount at the end of your loan period.

2.      Make partial payments

In this type of loan repayment procedure, you can make partial payments of both principal amounts and then pay the interest rate. You can also make partial or complete payments of the principal amount and interest.

3.       Bullet repayment

In this option, you can pay the entire loan amount including the principal amount and the interest rate at the end of your loan tenure and there is no need for you to pay monthly installments. After paying off the loan you can get back your gold ornaments as it is. This type of loan repayment option is generally for short-term loans like that of 6 months

4.      Pay monthly installments comprising of the principal amount and interest rate

This is the most basic and common type of repayment method in which you can play the part of your interest and principal amount in monthly installments.

You can also pay your loan via credit card but it has got certain disadvantages. After you are done with the process of repayment of the loan you can get back your gold ornaments in the same condition. You must not forget to collect the A loan clearance certificate is proof that there is no loan amount pending and the borrower has the right to collect his gold from the lender.

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