There are many ways a gold loan can be refunded from any bank that has to be repaid and has to be repaid in the given time. If not, the moneylender may take some serious actions against the borrower. This is a two-way procedure of giving and taking. If the borrower is not able to repay the loan on time this can affect the relationship between giver and taker for the long term.
The same is the case with gold loan the borrower party has to accept the terms and conditions of the concerned bank if not, strict actions are taken.
But there are several ways a Gold loan can be repaid.
The ways a gold loan can be repaid you can follow
1. Bullet Repayment:
At the end of the loan, the borrower repays the whole amount both the principal amount and interest amount.
Yes! One has the person who does not have to repay the amount during the loan tenure. You can pay the entire loan after the loan has completed.
2. Regular EMI option
The EMI choice is for those people who have a monthly inflow of cash in their bank accounts means the income of the applicant comes monthly in their account.
It involves both principal and interest pay-outs gold loans have less repayment tenure with 6 months or less and a maximum of 5 years.
So the person can get the gold loan easily and quickly and also repay it through multi-payment options.
3. You can make partial payments
Yes, you can make the principal and gold loan interest rate as per your wish. This means partial and complete payment of the principal and interest rate does not depend on the recent EMI schedule. There are other ways a gold loan can be repaid.
Basically, it is a customer-based approach.
If the applicant initially repays the principal, then the total interest pay-out is calculated daily amount of the loan outstanding. This helps one to save income tax also.
4. Pay interest as EMI & principal afterward
Using this method the buyer can also repay the interest according to the Gold loan EMI schedule.
But the principal amount has to be paid fully to the bank at the time of maturity. And the buyer has not to worry about the principal repayment. The various ways a gold loan can be repaid instantly.
Summary: To be precise and clear the banks and NBFCs let their customers to enjoy these types of benefits to repay gold loans. The bank and NBFCs always want that their customers must feel comfortable to apply and avail gold loan as well as repay it without any issues.
Read More: Features of gold loan
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