The gold against the loan can be reclaimed by repaying the loan.
Loan foreclosure charges range from 0%-3% and are applicable on the outstanding amount of your gold loan.
If you fail to repay the loan amount on or before the due date, penal interest is charged on the loan amount, according to the terms of your gold loan agreement. If you fail to repay your loan after being given sufficient notice after the due date, the Banks or NBFCs will auction your gold assets. They will also send auction intimation prior to the auction
Yes. After loan is disbursed, lender will send you timely reminders in a medium of your choosing (SMS, email, call) as per your repayment schedule.
There are three types of repayment – 1. INTEREST ONLY: Borrower pays only simple interest on the principal amount every month. At the end of the tenure, the borrower pays the principal and closes the loan. 2. EMI: A fixed amount is paid by borrower to a lender at a specified date each calendar month. Equated monthly instalments are used to pay off both interest and principal each month, Over a specified number of years, the loan is paid off in full. 3. BULLET: Bullet is where payment of entire principal and interest is made at the end of the loan term.
Any kind of gold jewellery of purity over 18 karat can be provided as security to avail a gold loan. Please note, some banks do not offer loan against gold coins and the weight of stones etc. fixed on the ornaments will be deducted for the purpose of valuation.
The market value of your gold is calculated according to the per gram market rate of gold on the day of the loan application.
The interest rate on the gold loan varies between 0.83% per month to 2% per month depending upon the lender. You can view the applicable rate of interest once you enter your details in our Gold Loan service section.
PayNearby is currently working with 2 partners – Muthoot Finance and Gold Uno.
Gold loan can be availed for a short duration starting from 7 days to 12 months and can be renewed post 12 months.