4 Ways to repay your gold loan

Gold ornaments are more than just jewellery. They are a type of backup that can help you out of difficult financial situations. You can borrow money against your gold jewellery in one of the quickest and simplest ways possible. Gold Loans are loans obtained by pledging your gold jewellery with a lender.

You may have read or seen a representation of these gold loans in books or movies. Where the borrower gave the moneylender their gold jewellery as collateral in exchange for much-needed funds. All major public financial institutions now offer gold loans, continuing the long-standing practice of lending and borrowing gold ornaments.

In the market, there are other loans that are comparable to gold loans. These loans serve the same function of quickly giving the borrower the cash they need. They are personal loans and credit card loans. All, gold, personal, and credit card loans have various advantages and disadvantages. However, one area where gold loans excel over them is that they are always secured loans, meaning that they are taken out in exchange for collateral, in this case, gold jewellery.

What is gold loan repayment?

Gold loan repayment is a simple process that involves paying the final value availed back to the lending institution. That gold loans are secured advances in financial institutions that allow borrowers to select from a range of repayment options.

Who is eligible to apply for a gold loan?

To take a gold loan you need to fall into the following criteria:

Nature of employment: self-employed professional, businessman, farmer, trader, and non-salaried people too.
Age Limit: to apply for a gold loan person's age should be between 21 to 60 years.

Documents: You need to submit KYC documents for verification.

Ways to repay the gold loan:

Pay Interest as EMI & Principal later:

By selecting this option, you can pay back the interest according to the gold loan's EMI schedule. But you must pay back the entire amount borrowed when the loan matures. Most borrowers find that this type of arrangement works wonders because they only have to worry about paying interest during the loan's term and not about repaying the principal.

Make Partial Payments:

If you buy gold from Augmont Gold Tech Pvt. Ltd easily makes partial payments of the principal as well as the interest. It is not crucial in this type of gold loan repayment schedule to follow the EMI schedule. This is definitely a gold loan customer-focused strategy! Regardless of the predetermined EMI schedule, partial or even full payment of the interest and principal components is permitted.

Bullet Repayment:

When using the Bullet Repayment method, you must pay back the entire loan balance, including the principal and interest. Yes, you read that correctly. During the loan term, there is no requirement to pay principal and interest! Just make one payment once your loan is paid off. This kind of gold loan does not require EMI payments; instead, you simply pay the entire balance in one lump sum at the end of the term, giving rise to the term “bullet repayment.” Additionally, this repayment mechanism calculates interest each month; however, it is only necessary to pay it (along with the principal repayment) at the end of the term.

Regular EMI option:

The regular EMI Gold loan is designed for people who receive monthly deposits of money into their bank accounts and is targeted at the salaried class. Interest and principal payments are both included in the EMI amount in this case. Since this loan is being given to applicants who are salaried, the process of granting it is also quick.

When you visit Augmont Gold Private Limited to close your gold loan account, the loan account will remain closed once you have deposited the remaining loan principal and updated interest amount. You will receive the collateral gold from Augmont once the closure of the loan account has been confirmed.