The biggest mistake a person makes is availing or suddenly moving into any kind of credit transaction without thinking and taking any kind of decision about what the consequences will be, as people in overconfidence do the most damage in their life. Gold loan is preferred most because of the repayment options available as per the flexibility of the masses which they are asking for repayment option.
For understanding the repayment option in a very clear way, there is a need to understand the concept of the debt trap. A debt trap is nothing but a situation where a person, to repay an already availed loan, takes another loan at a lower rate and another a loan and enters into a new burden with a high rate of interest which makes no sense. For example, if a person is having a loan of Rs 1,00,000 for 10%, then he will be entitled to repay a loan of rupees 10,000 per month. In the same way, it will not be advisable to repay a loan of Rs 1,00,000 at the rate of 5% of the same principal amount can be repaid not through other costly loans but gold loans. For example, 3% to 4%. To execute credit transactions for a short period or a long period in the form of any kind of loan, every step needs to be followed.
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Banks are having the Gold Loan Interest Calculator for the better estimation of the loan amount by people. To be trapped in a debt, it is very much easier to not get into it. Only just taking a gold loan will not solve the problem. One of the biggest advantages of the gold loan is that it has a lower rate of interest than all the types of loans available in the market. It also remains lower than the already available loan. In these circumstances, the gold loan at the low-interest rate, if availed for repaying the whole loan amount, which is incurring higher rates of interest will be a good option as the difference in the rates will provide the benefits. Such a way that the rate of interest plays a very important role here as the difference is the benefit. slowly a person can move out of the debt trap which has been trapped without noticing.
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Now, if you are coming across the repayment of the loans, there are some flexible options which will be fruitful for each section of the society that everybody can avail the services and meet their requirements for which the purpose of the loan will be served. If you talk about some repayment options, first and foremost comes the term of the bullet repayment option. Manappuram Gold Loan also serves such flexibility in payment of this type of loan option, where the payment of the entire amount of the interest as well as the principal amount will be done together at the time of the expiry of the loan term. The biggest advantage of this type of loan is that the candidate who is availing of the loan will get a period for arranging any kind of shortfall of the funds.
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If we come forward towards the other repayment options, that is the option of paying interest as an EMI on the monthly basis and paying the principal amount of the whole loan amount at the expiry of the term. The benefits of this type of loan repayment option are that the interest payment will not become a burden, but the principal amount might be a lump sum that can be paid at the time of the expiry of the loan. Until then, there will be enough time to arrange or to accumulate that particular amount each month and then repay accordingly at the end of the term.
For those individuals who are having a monthly salary or business professionals, it will add to the stability of the financial condition for opting for a normal regular repayment option. In the case of the normal EMI option, the monthly instalment and the principal amount are equally divided among the monthly instalment which will be paid.
