5 Quick and Easy Ways to Repay Your Gold Loan

What is gold loan repayment?

Gold loan repayment is the process of clearing the amount you have borrowed against your gold along with the applicable interest. It is an important step to get back your pledged ornaments safely and on time. If you are wondering how to repay gold loan, there are multiple options available to make it convenient for you. You can choose to pay in monthly instalments, interest-only payments, or even repay the entire loan in one go at the end of the tenure. By planning smartly, you can make faster how to repay gold loan decisions that save money on interest and help you close your loan smoothly. Managing repayments wisely also ensures a positive credit record.

How does gold loan repayment work?

When you take a gold loan, your gold jewellery is kept by the lender as security until you pay back the loan amount along with interest. The lender allows you to borrow a certain percentage of your gold’s value, known as the loan-to-value (LTV) ratio as loan. For example, with Bajaj Finance, if your gold is worth Rs. 50,000 and the LTV is 75%, you can get a loan of Rs. 37,500.
 

When it comes to repaying a Bajaj Finserv Gold Loan, you have flexible options to suit your financial needs. You can choose to pay only the interest periodically—whether monthly, bi-monthly, quarterly, half-yearly, or annually—while the principal amount is paid at the end of the loan tenure, with a gold loan minimum tenure of 1 day to %$$GL and maximum tenure of 12 months. Bajaj Finance also offers the benefit of part-prepayments at any time during the tenure without any additional charges. This option allows you to reduce your outstanding principal and save on interest costs. If you wish to clear your loan early, you can choose foreclosure by repaying the entire loan amount before the end of the tenure, again with no foreclosure charges. 

How to repay gold loan? To make repayments convenient, Bajaj Finance provides multiple online payment methods, including debit cards, credit cards, net banking, UPI, and e-wallets. Choosing the right repayment plan and paying on time is crucial to avoid penalties or the risk of your pledged gold being auctioned.

Top 5 quick gold loan repayment options

Bajaj Finance makes gold loan repayment easy by giving you multiple flexible options. You can pick the one that best fits your financial comfort. Here are the top 5 ways to repay quickly:

• Interest-Only Payments: Pay only the interest during the loan term and clear the principal at the end of tenure.
• Bullet Repayment: Repay both the principal and interest together at the end of the loan tenure.
• Partial Prepayment: Pay a portion of your loan amount whenever you have extra funds, which reduces your balance and future interest.
• Foreclosure: Close the entire loan in one go before the end of tenure to save on interest costs.
• Flexible Tenure Choice: Select a repayment tenure from 1 to 12 months, giving you complete control over how soon you want to repay.

Repaying your gold loan does not have to be overwhelming. By implementing any of these five easy ways - choosing monthly interest payments, considering part-prepayments, or exploring foreclosure - you can efficiently manage and repay your gold loan, bringing you closer to financial freedom.

Wondering how much you can borrow on your gold? Just check your gold loan eligibility—it takes seconds and minimal paperwork!