Gold ornaments are not only a piece of your jewelry but they can also be a mode to solve your financial problems in the form of the gold loans. You can pledge your gold ornaments to a lender till the time you repay him the loan amount. Gold loans are easily available and cheaper as compared to the personal loans which require extensive paperwork . You can get gold loans from all the public and private sector banks and also from the non-banking financial institutions at lower gold loan interest rate as compare to personal loan.
It is easier to repay the gold loans as you can get the gold loan at a lower interest due to the reason that you have already deposited your gold ornaments to the lender as security.
Here are the 4 ways in which you can repay the gold loan:
Make partial payments:
You can make partial or even complete payment of both the principal amount and interest as and when you wish to, irrespective of your EMI schedule. Simply you can pay the principal in the beginning and you can reduce your total interest payout.
Regular EMIs:
This repayment option is flexible and convenient for those who get a fixed amount of money in their banks every month. This repayment option consists of both interest as well as the principal amounts.
Bullet repayment:
In the bullet repayment method you are required to pay the total amount of both the interest and the principal at the end of the loan's term. Yes, there is no need for you to pay the amount during the loan tenure. In this type of repayment option the interest along with the principal amount is calculated at the end of every month however you can pay the entire amount in a single shot at the end of the term that is why it is termed as bullet repayment.
Pay interest as and the Principal amount later:
This is the most common type of repayment method, in which you can pay the interest on the gold loan in installments. You have to give the principal amount to your lender at the time of maturity date of the gold loan and you cannot pay back the principal amount in installments. The principal amount doesn’t form a part of the EMI and it can be returned at the end of the loan tenure.
The borrower should always go through the policies of the banks and NBFCs. Most lending institutions provide these methods of payment, but it is important to read the terms and conditions beforehand. You can go for a gold loan scheme from renowned banks like HDFC gold loan They provide loans at lower rates and the process of getting the loan approved is simple and swift.
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