Loans against gold have become very popular over the last few years. The gold loans offer several ways to repay the loans as compared to other secured loans. However, gold is not just a precious metal because some people take it as a financial investment. One can “Apply For Gold Loan“ by pledging their ornaments to the specific lender.

Gold loans are one of the convenient ways to arrange finances in the times of need such as medical emergencies, travel or study purposes and business goals etc. This yellow metal always comes as a savior in case of financial emergency or situation. Moreover, the interest rates upon gold loan are comparatively low than other traditional loans as it provides you an option for flexible repayment schemes.

In this blog post, we will discuss about the several ways to repay your loan against gold. Therefore, we jotted down some of super ways that you can follow to “Repay Your Gold Loan“.

• Periodic EMIs: Most of the borrowers prefer such method where they are required to pay the loan money from the month following disbursement month. It is a best option for salaried individuals who have regular cash flow. The monthly installment includes both principal and interest amount.

You can also pick an auto debit repayment which deducts from your bank account monthly. It also helps to reduce the liability of interest rate as the gold loan tenure progresses.

• Periodic interest: It is one of the most efficient ways to pay back the gold loan through periodic interest where both the principal and interest charges are kept separated from each other. One has to pay only the interest in EMI and total principal amount has to be paid on maturity.

This option is best for the individuals who don’t have enough monthly cash flow to be able to pay interest and principal money collectively. Borrowers should consult their lender bout interest amount and loan cost beforehand then select accordingly.

• Bullet repayments: In this method, borrower is required to pay principal and interest amount at the end of the loan term. During the loan term, you are neither required to repay principal money nor the interest rate. It is called as bullet repayment as you pay the entire amount at once at the end of your loan tenure.

• Partial payment: It is another method to repay the gold loan where borrower makes partial payments of interest and principal amount of gold loan as per their convenience. This method does not require you to follow the basic EMI system.

• Monthly interest in overdraft account: The repayment of gold loan is very easy through an overdraft account method. The overdraft accounts act as transactional account where people can pay the monthly rate of interest as per the account’s borrowing amount.

ShubhBank offers all these repayment options when you “Apply For Gold Loan Online“ or offline to fulfill your financial emergencies. To know more about the gold loan repayment methods, click at our website or visit our branch in tricity.