Gold products are not only a gem. They are a form of safeguard that can save you from the financial crisis. Canara Bank Gold Loan is one of the fastest and easiest ways your gold decorations can help you benefit from a loan against them. The loans available when lending your gold ornaments with a lender are referred to as gold loans.
You would have read or seen a representation of such gold loans in books and movies where gold ornaments were given as collateral to a moneylender and then he/she gave the borrower the much-needed cash.
Other loans, similar to gold loans, exist on the market. These loans fulfil the same purpose of providing cash to the borrower without much hassle. All, gold, personal, and credit card loans have various advantages and disadvantages. However, an area where Gold loan scores above them are that it is always a secured loan i.e.
Pay interest as EMI & Principal later: Through this option, you can repay the amount of interest according to the gold loan's EMI schedule, but the amount of principal borrowed must be paid at the time. Such an arrangement works perfectly for most borrowers because, throughout the loan's life, one is responsible only for paying the interest and not worrying about the principal's repayment.
Make partial payments: Make partial payments of interest and capital if necessary. Adherence to the EMI schedule is not important in this type of gold loan repayment schedule. Now it's a customer-centred approach for Gold Loan customers! Partial or even complete payment of interest and major items is allowed, irrespective of the EMI's predetermined timetable. When you repay your principal immediately, your cumulative interest rate, which is typically measured monthly on the debt outstanding balance, is bound to decline. You will save on much serviceable interest this way.
Points repayment: In the points repayment method, you must repay the total amount of principal and interest at the end of the loan term. Yes, you heard it right! You don't need to pay the principal and interest during the loan period! Pay the total amount once your loan is completed. You don't need EMIs in this type of gold loan; pay the entire amount due at the end of the term in one shot, hence the payback bullet term. Also, in this repayment mechanism, interest is calculated monthly, but payment (and repayment of principal) is only due at the end of the term.
Regular EMI Option: Intended for the employee class, the regular EMI Gold loan is developed for those who have cash inflows into their bank accounts every month. In this case, the amount of the EMI shall comprise interest and capital payments. The granting of this loan is also a quick process since it goes to salaried candidates.
You can pre-pay most gold loans as and when desired as most of them do not have a prepayment penalty or a minimum lock-in period. Gold loans are short-term repayments, most with a maximum term of 5 years and an average term of 1 year or less.
When you visit the lender to close your gold loan account, you will have to deposit the outstanding loan principal amount with the updated interest amount, and then the loan account will stand closed. Once the loan account closure is confirmed, the concerned authority (mostly the bank branch manager) will hand back the collateral gold to you and obtain your acknowledgement. And so it will be an end of it, the gold jewellery which not only provides you with much-needed cash at a time of financial urgency will again be at your service, shining an eternal glimmer and a fascinating beauty to embrace your property.
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