An outstanding amount calls for an EMI to be paid. In case of a person who has a loan amount on him to be paid receives a lump sum amount then he can pay for the loan to get debt-free and grab financial freedom. Foreclosure can be considered a good option to prevent your asset from getting auctioned or getting acquired by any financial institutions or banks or lenders.
You struggle to pay EMI and one day you get an amount that easily helps you to normalize you with the situation so what should be done to protect you from burden? Once you go up with a situation where you fail to repay, then this lump-sum amount will help you out to reduce the burden you have in your pocket.
What about gold for a foreclosure? The foreclosure depends on the amount you have with you. The more amount the more freedom which means the situation of money and burden is directly proportional to each other.
Considering gold loans the question comes that whether a gold loan can be foreclosed or not?
you can always foreclose the loan at any point in time. Usually, lenders do not levy any charges on foreclosure of gold loan but fewer charges minimum on the principal amount.
To go with the foreclosure option these are the steps below:
Application: Application to be submitted to the financial company. The existing gold loan account number, and copy of Aadhar and pan card attached along with the application.
Payment: Once the application is received by the bank, the bank will calculate the outstanding amount by calculating all the interest amounts paid till the date of foreclosure. And it will be communicated to the borrower with the following amount to be paid either RTGS/NEFT or by cheque.
No pre-payment can be charged by the banks on the company foreclosure.
The bill provided by the bank on behalf of the loan will help you to identify the loan part and will go with foreclosure of the remaining part.
No dues certificate In addition to the initial documents, the customer must obtain a no-dues certificate from the bank confirming that no money is owed. The address of the property as well as the name of the customer must be included on the certificate.
The gold loan can be used by an individual to foreclosure other loan amounts. The loan amount can be determined and can also be paid with the help of gold loans. Banks are cheaper loans and it leads to providing a better value that can help you to protect yourself from loan burden.
These are the points for foreclosure, but sometimes you are available with an amount and you have to pay for the gold amount then it will certainly help the borrower to repay the loans.
Let’s assume an example: you take a gold loan, from a Corporation Bank gold loan with a value to an extent that can help you to meet your expenses. But after that you are in trouble in paying the EMI amount then the only thing he can do is to pile up the loan amount if he/she is available with respect which will lead to reducing the burden.
CONCLUSION:-
What matters is the repayment of loans. If you pay it on time or before time thinking about the difficulty and the strain you are getting on yourself to meet up the expenses then it is a very fine option to get rid of things. The foreclosure will help if you have an amount to pay and if not then a gold loan is a term which is a secured loan that can also help you to reduce your burden up to a limit but thinking of the point it may help you in the short notice but the strain on your pocket will be increased on your salary. As per the latest gold prices, Banks are offering a gold loan Per Gram as good.
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