Kartnataka
  • February 13, 2023
  • 1413 Views
  • 5 Likes

Gold Loan Repayment: 4 Easy Ways to Repay

Gold Loan Pay

There’s no denying that gold is one of the most important financial assets for anyone. While most people buy gold in the form of gold jewellery for sentimental reasons, the same jewellery pieces can act as a safety net during financial exigencies. Since availing of a gold loan has become so much easier nowadays, it wouldn’t be wrong to say that almost anyone can secure funds by pledging gold as collateral. Precisely due to the asset-backed nature of gold loans, lenders charge a lower interest rate, which makes them a suitable option for most borrowers. That being said, to avail of a gold loan, timely and diligent gold loan repayment is also one of the most important priorities.

Compared to other loan applications, a gold loan is one of the quickest applications with minimal documentation. If someone is in dire need of funds, then taking a gold loan is one of the options to prefer. Gold loans are one of the easiest ways to arrange funds for business deals, medical exigencies, travel purposes, study purposes, etc. Owing to the different benefits, borrowers sometimes still lack enough information on how to streamline their gold loan repayment for better debt management. Ideally, the first step towards repaying the gold loan is to find out ways to repay the loan. Here are some of the most popular and super easy ways borrowers can use to repay a gold loan.

Periodic Monthly Interest Payments

Repaying gold loans via regular Equated Monthly Installments or Monthly Interest Payments is useful to help instill discipline. Periodic Monthly Interest Payment is a suitable option for borrowers with a steady income. It is a quick and easy repayment process for a gold loan since the monthly repayments include both the principal and interest amount. One can also automate the monthly repayments if one prefers easy repayments. The periodic Monthly Interest Payment option also helps the borrower reduce the interest liability as the loan term progresses. The gold loan foreclosure gets easier with time for the borrowers. This way, the borrower can repay both the principal and interest amount regularly.

Pay the Interest First and the Principal At Maturity

In this repayment arrangement of gold loans, the borrowers need to pay the specified interest component and the borrowed sum, i.e., the principal amount can be paid fully on maturity. This option works in favour of the borrower who does not have a steady income flow to simultaneously service a loan’s principal amount and the interest component. If the borrower finds it difficult to repay the principal and interest amount at once, they can consider this loan repayment schedule. However, because of the minimum repayment, the interest rate levied on the gold loan would amount to a higher sum. Hence, a borrower is advised to gain full insight into the resulting cost of borrowing.

Opt for Bullet Repayments

In this case, the gold loan repayment arrangement does not require borrowers to pay monthly interest. However, the same can be paid along with the principal amount at the end of the tenure. Under bullet repayments, borrowers do not need to worry about following an Monthly Interest Payment loan repayment schedule throughout the tenure. They can simply repay the loan in a single shot at the time of maturity. This repayment option of a gold loan works well if the borrower’s repayment tenure is short, say up to six months or a year, and the borrower can repay the entire loan amount in a single shot. The only catch with bullet repayment is that the interest amount is calculated on the entire borrowed sum and not on the outstanding reducing balance, elevating the borrower’s cost of borrowing.

Make Partial Repayments

As the name suggests, the borrowers pay partial repayments of gold loans as and when it is convenient for them. Borrowers can make partial payments towards their active loan as and when they have substantial savings or when they receive bonuses or increments. Making partial payments is advisable if you cannot pay regular Monthly Interest Payments or regular interest payments. Moreover, if the borrower decides to pay off the entire loan amount before the end of the tenure, they can save considerably, as the interest amount for the remaining tenure will be waived off. This option is suitable for borrowers who wish to save the interest amount and want to claim the pledged gold at the earliest.

Bonus Repayment Option: Foreclosure

Very few borrowers know that many lenders offer foreclosure for repayment of gold loans. Nowadays, many banks and NBFCs offer foreclosure options to borrowers if they wish to clear off the gold loan sooner and get their pledged gold back. Some lenders do not charge any foreclosure charges if the entire sum is paid within a pre-specified window. Therefore, the borrowers can pay the entire amount before maturity, even though they have opted for any payment method. In turn, the foreclosure repayment option reduces the interest on the gold loan. Hence, the borrowers will end up paying less.

Explore Muthoot Finance Options

When it comes to taking a gold loan online with easy repayment options, Muthoot Finance is a trusted name that guarantees complete customer satisfaction. Muthoot Finance recognises the value of your gold assets and how they can help you out in times of dire exigencies. With maximum value for your gold, pre and part-payment facility, digital payment facility to gold loan calculator, Muthoot Finance offers complete ease and exemplary service with the help of trained in-house staff. The benefits are not limited to this, as one can calculate their eligibility for a gold loan by Muthoot Finance through the Muthoot Gold Loan Calculator.

With the Gold Loan at Home facility by Muthoot Finance, you can put your gold to work and receive funds with a rapid disbursal time. Borrowers can get a minimum loan amount of INR 1,500 and no maximum limit, depending on the purity of the gold pledged. With several loan repayment options, Muthoot Finance Gold Loan at Home is designed to suit all kinds of financial needs. Explore Muthoot Finance’s hassle-free gold loans and select the one that caters to your needs the best.

RELATED BLOGS:

What is the Procedure for Muthoot Finance Gold Loan Repayment?

Fast Cash, Low Risk: Exploring the Benefits of Opting for a Gold Loan

Leave a Comment

    Related Posts