In India, we have seen gold jewelry as one of the most powerful financial instruments that can have your back in highly financially strained conditions and more than that, as something that has some invaluable emotional values attached to it. While in the tough times pledging your gold against a gold loan seems the most viable and the best option from all dimensions, we Indians cannot miss the feeling of recovering the ornaments as soon as possible. Today taking an online gold loan has become a piece of cake for anyone, with no complex and intangible policies and formalities that used to take weeks for processing earlier. All this today is possible because of companies like Rupeek.
So today in this blog, we are going to tell you the different ways in which you can efficiently repay your already taken gold loan in 2022. You can consider this as a complete guide for beginners to repaying their gold pans, and we will start this article from the very scratch of the topic so that people with every level of knowledge can get the context right.
What is a gold loan?
A gold loan is a mode of loan where you tend to pledge your gold ornaments in return for a credit amount. As soon as you repay the principal amount along with some interest, you are eligible to proclaim your gold jewelry back. Different banks and NBFCs have entered the market of money lending through gold loans and work on government-regulated policies.
How to repay your gold loan efficiently in 2022?
Precisely because of the reason that gold loan is a secured type of loan for example it is supported by some security, for our situation, gold, it is not difficult to take care of gold loans since the guarantee empowers the moneylenders to allow you the loan at lower financing costs in contrast with the loan fees of personal loans and Mastercard loans. Gold loan applications are similarly immediately handled and require negligible documentation. Since gold loans are simpler to process and give, moneylenders including banks and non-banking monetary organizations (NBFCs) have thought of 4 sorts of gold loan repayment methods. So let us look at them one by one.
Note: This blog only seeds suggestions for gold loan repayment options. It completely depends on individuals and their financial conditions, which method of repayment would suit them.
- Pay the interest in monthly distributions and the principal amount at the end as a lump sum
With this option, you can choose to pay the small interest amount in monthly installments and the big lump sum amount at the end of the term. This option is viable for those who know that they will be able to arrange the money by the end of term and just want some time to repay their loan.
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- The choice for paying in partial payments
You can choose to pay in partial payments i.e., pay an unfixed amount at any time interval between the loan tenure as per your wish.
- Bullet Repayment method
In the Bullet Repayment technique, you need to reimburse the whole measure of both the head and interest sum toward the finish of the loan’s term. This is ideal for those who know they will be able to arrange a big sum of money towards the end of tenure.
- Pay the entire loan in monthly installments
This is possibly the best way of repaying your gold loan. You can disintegrate the entire loan amount (principal amount + interest amount) into equated monthly installments (EMIs). So that the entire thrust of loan repayment is distributed in a disciplined way.
If you are looking forward to taking a gold loan in 2022, you can consider Rupeek. They offer a gold loan at a starting interest rate of just 0.49% per month. Loan repayment can be a twisted task, plan it well and share the blog with your family and friends who may find it helpful.