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Gold loan is the most preferable loan when one is in urgent need of funds. India has registered a quantum leap in the number of gold loan borrowers in recent years. The convenient loan application process, very easy documentation process, and feasible repayment options, including gold loan repayment online make a loan against gold the most advisable one.
Most of the individuals in the country purchase gold ornaments as an asset, rather than just decorative pieces. One can approach banks, NBFCs, or private individuals for gold loans. NBFCs normally offer convenient gold loan repayment methodologies including online gold loan repayment.
Gold Loan Repayment Options
You can choose from different options to repay your gold loan. Utilize gold loan payment online if you are unable to travel to the financial firm. Let’s see the different loan repayment alternatives.
1. Flexible Repayment Options
Most of the loan repayment would be based on EMIs. Defaulters, who fail to pay the amount on the stipulated date, will have to pay a penalty. Gold repayment is flexible in nature. It doesn’t ask for any monthly payments. The borrower can repay the loan as and when he or she has enough money. Partial gold loan repayment is also possible, which is not a common aspect when you think of loans.
2. Monthly Payment
Are you an employee receiving a monthly payment? Is it difficult for you to comply with the gold loan repayment altogether? Not to worry at all. Some gold loan financiers also offer EMI-based loan repayment. The monthly deduction would comprise both principal and interest amounts. Therefore, the gold loan amount would be diminishing accordingly. Government and private employees select this loan repayment method generally.
3. Partial Payment of the Gold Loan EMI
Borrowers can ask the NBFC for an arrangement to repay the interest accumulated on a monthly basis. The EMI hence would be less than normal EMI. The individual can pay the principal amount on completion of the gold loan tenure. One can collect the money over a period and pay the pending principal amount on the date of maturity. Check with the trustworthy NBFC or bank regarding this type of loan repayment method. This methodology is ideally chosen by most of the gold loan borrowers. Gold loan online payment is also permissible for this option.
4. Payment of Total Amount Together
This type of gold loan repayment option is advisable for entrepreneurs but not for the salaried class. Although salaried individuals also go for this type of payment, it is suited for businesspersons normally. The total amount, including principal and interest, can be paid together at the end of the loan period. Those who can afford to pay the larger amount that accumulates by the end of the loan period, can choose this option.
The gold loan has been a viable option for those in need of urgent funds. The simple process that doesn’t ask for lengthy documentation is the best choice. Unlike other loans including personal loans and business loans, where the loans are approved for specific purposes, the gold loan can be obtained irrespective of the purpose. The NBFC or bank approving the gold loan will not enquire about the requirement at all.
Go only to a reputed finance firm, bank, or NBFC for a gold loan. The interest rate will not be exorbitant in reliable firms. Further, they would be supportive of your needs and requirements.