4 WAYS TO PAY EMIS UNDER GOLD LOANS WELL

Gold is one such thing that can be used for ornamental purposes as well as for investment. Gold comes to one’s immediate rescue as in some of the frightful phases of your life gold can easily bail you. Gold can be borrowed from a couple of sources say that be NBFCS, private vendors, or banks. So before you take loan for gold, let's be aware of the various payment methods of repaying it.

Partial Payments, paying the interest payments in the form of EMI’S and the principal amount at the end of the loan tenure:

Once you avail this option you just need to pay off the interest component in monthly installments and the entire principal amount without any hassle can be paid at the end of the entire loan tenure. This reduces the pressure on an individual’s shoulder and the outcome can be quite a fruitful one. This can be quite useful as you need not worry about paying back the hefty principal amount until the time your loan matures.

Partial payments, of the principal amount and paying the interest with ease 

One can make partial payments of both the principal amount borrowed and then pay the interest rate as per one’s comfort. This is an extremely customer-centric approach where one needs to just open an account with the Indian Overseas Bank gold loan and make partial or complete payments of both the principal amount and the interest component as per a repayment option that suits one. You can tend to save a couple of serviceable interests by paying your principal amount in the first go itself.

BULLET REPAYMENT SCHEME 

Here you can pay your entire loan amount as well as the interest payment in the form of a lump sum amount that is at the end of your loan tenure. However, this scheme serves your purpose when you happen to apply for short term loans as the interest is calculated monthly and one needs to pay it in one short. 

PAYING MONTHLY INSTALLMENTS OF BOTH THE INTEREST PAYMENT AND THE PRINCIPAL AMOUNT:

Well, this scheme is apt for the people who receive their salary as they tend to receive a fixed inflow of cash every month. An equal amount of monthly installments of both the interest as well as the principal amount has to be made. 

Thus you as borrowers should choose the right method of repayment based upon your inflow of cash that is the entire income during the loan tenure. The pandemic has created havoc among the people thus the repayment options should be considered as per one's ease. Suppose the bullet repayment option may be considered by a person who has a constrained flow of cash while those who receive a certain amount of income should prefer to consider the EMI option as one tends to save an upfront huge amount of the serviceable interest.