Gold loans are becoming more and more common in India. On the one hand, a gold loan is a great way to organize funds to meet your various needs, whether it is a medical emergency, a business transaction, or any other similar reason you need immediate cash. Second, since you will be mortgaging your assets, these loans have lower interest rates and flexible payment plans. Unlike most other loans, you don't need to rely solely on equivalent monthly installments or EMI to pay off your gold loan/gold-loan/Manappuram-gold-loan Manappuram Gold Loan Interest Rate starts from 9.90% to 29.00%
Different gold loan repayment mode-
In the case of any credit line, repayment is definitely an important factor. When we talk about gold LOAN, the payment method you can choose is not one, but four. let's view all the payment methods mentioned below
- Interest Payment at a Regular Interval and Principal Amount at the end of the Tenure
- Upfront Interest Payment and Principal Amount at the end of the tenure
- Regular Monthly Installment Payment
- Bullet Repayment Method
The interest rate at regular interval
This is the first loan repayment method in which you can choose to pay interest amount at regular intervals monthly, quarterly, semi-annually, and annually and pay the principal amount at the end of the tenure. As a result, you can select the interval that is most comfortable for you. During the tenure, he or she does not have to worry about principal repayment. However, at the end of the term must pay the entire principal amount.
Upfront interest payment
As per the above discussion you can choose to pay the interest amount at predetermined intervals. You can pay the total interest amount upfront at the start of the loan and the principal amount at the end of your tenure using this method. You won’t have to worry about the payments during your tenure. if you use this method because you will only have to pay the principal amount at the end of tenure.
While selecting this method you should preserve your compensation potential on your thoughts as you may need to pay a large quantity after the tenure ends. And your pledged gold will best be launched whilst there is no super mortgage quantity left to your name.
Regular monthly installment
This is a more traditional method of repaying a gold loan. This repayment method is available on almost all other loans, including personal loans, home loans, car loans, and others. You can pay both your principal and interest through Equated Monthly Installments during the term of the loan (EMI). This sum will include a portion of your principal as well as a portion of your interest. The EMI amount will be deducted from your bank account automatically each month. This method is ideal for applicants who have a consistent source of income.
You can also use the Gold Loan EMI Calculator to get a better understanding of this method. It will calculate the exact EMI amount after you enter a few details such as the loan amount, interest rate, and loan tenure. Assume you take out a gold loan of INR 7,00,000 for a period of 24 months at a rate of 15.50 percent per annum. When you enter all of these details into the Gold Loan EMI Calculator, you will get an EMI of INR 34,107. You will be required to pay this amount each month in order to repay your loan at a rate of 15.50 percent per year.
Bullet Repayment Method
This is one of the most adaptable gold loan repayment options available. You do not have to pay anything during your tenure if you use this method. After your tenure is over, you can pay both the principal and the interest. As a result, this method is known as Bullet Repayment. You do not need to be concerned about the payment during your tenure; simply make the full payment when your tenure ends. However, keep in mind that your interest amount will be calculated monthly and added to your principal amount.
So, these are the gold loan repayment options available to you based on your repayment capacity and monthly income. Any missed payments will harm your credit score and may result in the loss of your valuable gold ornaments to the lender.