Gold loan is also known as the loan against gold, is an ensured loan received by the borrower from the lender by pledging their gold articles within a range of 18 - 24 carats.
Upon facing some financial constraints in life, seeking a gold loan can be one of the viable options if you have articles made of gold and have finally made up your mind to liquidate gold as cash.
ICICI Bank gold loan is designed to keep the convenience of the borrower in mind thus they provide instant gold loans by pledging the gold articles or jewelry at any branch of ICICI Bank.
ICICI Gold loan can be applied whenever you require funds for the education of children, business expansion, down payment for the purchase of property or automobile, medical emergency, holiday with family, agricultural needs, etc
ICICI Bank ensures the borrower with
Instant loan across the table
Attractive ICICI Gold loan interest rates
Simple and easy documentation
Repayment at the end of the loan tenure
Complete safety of the gold articles
To calculate how much loan can a borrower get as an ICICI Bank gold loan against his or her gold ornaments an ICICI Bank gold loan calculator is designed,
Click here for ICICI Bank gold loan calculator
But what happens when you fail to pay the ICICI Bank gold loan?
Like any other loan, the borrower is supposed to pay the EMI and accrued interest at the end of the tenure however due to unexpected circumstances, one is unable to pay their loan on time and if delayed for long durations the borrower will be facing some repercussions he or she might not be knowing but will understand by the end of this post.
Penal Charges - ICICI Bank is liable to charge a penal rate of interest (also known as ICICI Bank Gold loan interest rates) on the loan amount from the due date of the loan.
Reminder text messages and calls or a letter from the bank - When the overdue persists for a longer duration the bank is bound to send periodic reminders about the overdue of the loan amount, such situations can be dealt by visiting the nearest ICICI Bank branch and submitting a request to reset the repayment schedule. This can help the borrower to avoid major contingencies.
Auctions - If the borrower is unable to repay the loan within the period of tenure, the company holds the authorities to sell or dispose of the golf through an auction however the bank does inform the borrower about the auction two weeks before putting up he pledged gold on sale.
Here is what you can do if you are facing a similar situation :
Inform the bank about the inability to pay on time, the bank, within its policies may further extend the loan tenure which might be enough to pay the outstanding amount.
To reduce the due loan amount, one can make part payment of EMI with accrued interest.
The borrower must understand that the probable consequences of overdue on a gold loan may vary from one case to another thus one should understand the consequences defaulting on the gold loan will bring. Even during an auction, the borrower must understand -
On surplus on the sale:- the bank shall have the right to adjust that amount towards any other liability to the company or it is refunded to the borrower within 30 days of the auction.
If the sale proceeds to less then the amount that is due:- the bank shall have the right to resort to legal measures against the borrower to recover the losses. 0
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