Four Ways to Repay Your Gold Loan
There’s no denying that gold is an important financial asset.. While most people purchase gold jewellery for sentimental purposes, such pieces can act as a safety net during financially difficult times. A Gold Loan can be of immense help during such emergencies
Almost anyone can avail of a gold loan. To get a gold loan, you need to pledge your ornaments as collateral. Since these loans are secured loans, their interest rates tend to be lower than that of personal loans. On repaying the loan, you get back your ornaments in pristine condition. Learn more about HDFC Bank Gold Loan here.
Once you take a gold loan, you can pay back the principal and interest in multiple ways. Here are some of the most convenient options -
Repayment of gold loan
Pay Interest as EMI & Principal later
Under this form of repayment of gold loan, you are permitted to repay the interest due on the loan as per the EMI schedule given by the lender. However, you can make a single payment to pay off the principal amount. This payment can be made at the time of maturity of the loan. Borrowers prefer this form of repayment because it allows them to repay only the interest amount during the gold loan repayment period without having to worry about the principal.
Make Partial Payments
When you opt for this form of repayment of gold loan, you are not required to adhere to the EMI scheme provided by the lender. You can make partial payments of the interest and the principal amount as and when you desire. Thus, you can tweak your repayment schedule to match your financial capabilities. If you choose to pay the principal amount right at the beginning, your total interest pay-out, which is calculated daily on the loan amount that remains outstanding, reduces. Thus, you end up saving a lot on the serviceable interest.
Under a bullet repayment plan, you have to repay both the interest and the principal amount right at the end of the loan’s tenure. You do not have to worry about any repayment of gold loan during the loan tenure at all. You do not need to adhere to any EMI schedule and can simply make the entire payment when the loan term is finished. The interest on the loan is calculated each month but becomes payable only at the end of the gold loan tenure. Since you repay the loan in a single shot, this form of repayment of gold loan is called a bullet repayment plan.
Regular EMI Option
A regular EMI-based repayment of gold loan plan is geared towards salaried persons who have a fixed monthly income. The EMI amount due includes repayment on both the interest and the principal amount. Since the loan is favourable for salaried persons, it is approved sooner.
In general, Gold Loans do not have any lock in periods and have short repayment tenures. The gold loan maximum tenure is 5 years. Upon the end of your tenure, when you have deposited the outstanding loan amount and the interest due, the loan account will stand closed. On successfully repaying the loan the lender will return the gold articles pledged.
HDFC Bank’s Gold Loan
HDFC Bank recognises the value of your gold assets and how it can help you out in times of need. Thus, we offer Gold Loans at reasonable interest rates. At HDFC Bank, you can make use of your idle gold and receive funds with a rapid disbursal time of 45 minutes. Our gold loan tenure starts from 3 months and our gold loan maximum tenure goes up to 24 months. With several repayment options, HDFC Bank’s Gold Loan is designed to suit all kinds of financial needs. HDFC Bank’s Gold Loans start at a relatively high amount of Rs. 25,000 and can be applied for through an online process.
Explore HDFC Bank’s hassle-free and convenient application for Gold Loans by clicking right here.
*Terms and conditions apply. Gold Loan at the sole discretion of HDFC Bank limited. Loan disbursal is subject to documentation and verification as per Banks requirement.