online gold loan

It has become easy to take a gold loan in today’s world, but when it comes to the repayment methods of gold loans, things get complicated. Many people are not aware of different gold loan repayment methods. This article will shed some light on different methods available to repay the gold loan.

  • EMI (Equated Monthly Installments) Method: The borrower of the gold loan can opt to repay the loan using the EMI method. Under this specific method, the borrower is allowed to repay the interest and principal amount in equal monthly installments over a period of time. The tenure for which you are taking the loan is decided by the lender at the time when a loan is being given. Some borrowers are comfortable in paying smaller payments. In such a case longer loan repayment duration can be chosen.
  • Monthly payments Method: This method is much similar to the equated monthly installment method. The only feature that makes it different from EMI is that it allows you to repay only the amount of interest accrued on the gold loan every month. There is no need to repay the principal component till the duration of the gold loan is over. The interest payments in this method are calculated based on the remaining amount of the principal and the outstanding balance.
  • Bullet Repayment Gold Loan Method: Many people find it annoying to repay the principal and interest amounts at regular monthly intervals. For such people, the bullet repayment method is the suitable one. This method simply implies the repayment of the entire amount of principal and interest at the end of the loan period. Hence, now there is no need to repay the loan in monthly installments. Just go to the bank at the end of the loan duration, give them the pre-determined lump sum amount, and get your gold back from the financial institution in one go. You need to know that this specific gold loan repayment method is applicable for the loans taken for a shorter duration (within six months).
  • Partial Payments Method: If you think that both regular EMI and bullet repayment gold loan options are not suitable for you, don’t worry. There is still the option of a partial payments method. This method offered by the banks allows you to repay your gold loan whenever you like. Unlike the regular EMI method in which regular monthly payments for principal and interest are to be made and bullet repayment method in which the entire loan amount is to be paid at the end of the loan tenure, this method allows you to repay the loan at your convenience. Irrespective of the pre-determined schedule, you can pay any amount at any time.

By offering multiple gold loan repayment methods, the financial institution has made it easy and simple for the borrowers to repay the loans taken by them. Now a borrower can select any one gold loan repayment method from the many available at his or her convenience.