What happens if the loan is not repaid on the due date, or not repaid entirely?

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

What are types of repayment?

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.

What collateral needs to be provided for getting this gold loan?

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.

What is the interest charge applicable on gold loan?

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.

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