The concept of loan against goal, though centuries old, has brought a whole new dimension to the idle asset, gold. Your gold jewellery and articles are a source of availing short notice loan without any hassle. All you need to do is keep your gold as collateral with the loan funding institution and get it back once the gold loan repayment is made successfully.
Understanding the process of the gold loan repayment procedure is essential to completely understand the working of a gold loan. How will I repay the loan? What are the gold loan repayment options? What process should I choose? All these are some of the questions that might pop into your mind when you are planning for a gold loan. There are a plethora of gold loan repayment options that you can choose from. Check out your gold loan repayment period and accordingly choose a mode that best suits your interests.
Yes. You can choose to repay the pending loan amount before the tenure ends. However, some banks or NBFCs may allow this option only at the cost of some penalty for the preclosure of the gold loan. So, read all the clauses and terms properly before you borrow a loan.
A gold loan is granted against the gold articles that you keep as collateral with the bank/NBFC. Hence, if you fail to repay the gold loan on time, the bank/NBFC will confiscate your gold articles kept as collateral and get them auctioned. Legal actions may also be taken against the borrower if the complete loan amount is not received by the funding institution.