- Gold Loan
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- Money Transfer
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5 DIFFERENT WAYS OF REPAYING YOUR GOLD LOAN
Most Indian households buy gold in the form of jewellery items such as bangles, necklaces, earrings, etc., during festivals and weddings. This is because not only because of certain traditions in our culture but also due to the benefits that gold offers as an asset. In times of emergencies, gold can be exchanged for money, generally at a higher rate than its original value. So, if there is a major crisis within the family, then taking a gold loan is possible at any time. Besides this, you can take a gold loan for your business when there is a need for capital on an urgent basis. However, there are a lot of people who are confused about how gold loan works. Whether it is their lack of interest in this subject or inexperience in dealing with financial matters, they are unaware of various aspects that need to be considered such as interest rates of different financial firms such as Muthoot Finance, gold loan payment options, and so on. Mentioned below are the key elements that you must keep in mind before taking a gold loan:
Things to Consider While Taking a Gold Loan
When you think about taking a gold loan, you should understand your needs. From learning more about gold loan EMI payments to choosing a reliable financial institution, some serious research is required to make a sound decision for yourself and your family. It is suggested to take out time from your busy schedule and do the needful before taking a gold loan.
The best time to take a gold loan with a feasible repayment plan is during the festive season. The benefit that you will enjoy is a low-interest rate. Moreover, the value of gold items during Dussehra, Diwali, and other festivals in India tend to increase. Due to this reason, you will be able to get a better gold loan payment option from Muthoot Finance and other well-trusted financial firms.
Taking a loan, in general, is a big decision that should be taken carefully. When it comes to a gold loan, EMIs, and payment of interest, you must read the terms and conditions provided to you. In case you are unsure of any points written in the documents for gold loan repayment, you can consult a family member or friend who has prior experience. In fact, you can even an advocate or CA to help you understand the technicalities if needed.
Understand Your Needs
Find a Bargain Deal
Read the Terms Carefully
5 Ways to Repay Your Gold Loan:
Gold loan repayment is a process that should not be taken lightly. Since there are a number of things to remember while returning the gold loan principal amount and interest, you have to consider all the options available in the market. Your goal should be to find a way that can make your life easy. Minimal documents for gold loan repayment, quick processing, and a reliable financial institution like Muthoot Finance with online payment options are some key factors to note. Here are five ways to
Repay Interest and Principal Amount Equally - The most common way to start a gold loan payment plan, online and offline, is Equated Monthly Instalment or EMI. This option is for those who want to repay the principal amount and interest equally on a monthly basis.
Pay off the Interest First - Muthoot Finance’s loan repayment experts suggest their customers pay off the interest first. This is a safer choice as you will only have to pay the principal amount of your gold loan later on. It is a good option for people who do not want to worry about the principal amount payment of their loan through EMI.
Think about Bullet Payment - Bullet repayment of a gold loan is fruitful for people who do not want to stress about paying the amount borrowed or its interest during the tenure. They have the choice to pay the entire amount at the end of the loan payment plan.
Research Partial Payments - Some people who are unsure about making a significant amount of payment in one go can opt for partial payment. Online or offline gold loan pay-offs by Muthoot Finance among other well-trusted financial firms, provide the option to customers wherein they can repay the total amount according to their convenience. You do not have to follow a timeline in this repayment process.
Look for Pre-Closure Options - There can be situations when you have the right amount of money to pay off your gold loan before its due date. Top financial institutions like Muthoot Finance accept full repayment of gold loans by pre-closing the process early.
Based on your financial situation, you can choose any of these five ways to repay your gold loan easily.
Muthoot Finance is one of the most reputed financial institutions offering online payment of gold loans to its customers across the country. Its online repayment facilities allow customers to check their active gold loans, transaction history, avail gold loan at home, and a lot more. Browse our gold loan services to know more.