5 quick and easy ways to repay your Gold Loan

Looking for quick and easy ways to repay your gold loan? Here are 5 simple ways to help you easily complete your loan repayment on time.
5 quick and easy ways to repay your Gold Loan
2 min read
11 July 2023

Most Indian households buy gold jewellery items such as necklaces, bangles, and earrings during weddings and festivals. Gold holds significance in our culture and serves as a valuable asset. During emergencies, you can exchange your gold jewellery for money, usually at a higher rate than its original value.

Unlike unsecured loans such as personal loans or home loans, loan against gold jewellery involves minimal documentation, quick disbursals, and low gold loan interest rates. With Bajaj Finserv, you can enjoy a hassle-free process, fast access to funds, high gold loan per gram, and affordable borrowing options for your needs.

If you have taken a gold loan and want to repay it conveniently, there are several simple strategies you can adopt. By following these five easy ways, you can effectively manage your gold loan repayment and alleviate financial stress. Let us explore these methods to ensure a smooth repayment process.

Equated monthly instalments (EMIs)

One of the easiest ways to repay your gold loan is by opting for equated monthly instalments (EMIs). With EMIs, you can break down the loan amount into smaller, equal payments. The EMI consists of both principal and interest components, allowing you to repay the loan gradually over the agreed-upon duration. Ensure timely payments of your monthly EMIs to avoid any penalties. You can automate these payments through electronic payment methods or set reminders to stay on track.

Bullet payments

Bullet payments refer to making lump sum payments towards your gold loan at specific intervals, typically once a year or whenever you have surplus funds. By making these additional payments, you can reduce the outstanding balance and minimise the interest accrued. Bullet payments can help shorten the loan tenure and save on interest charges.

 Read also: What is the procedure for gold loan repayment

Monthly payment of interest

Another option is to make monthly payments of only the interest accrued on your gold loan. This approach allows you to manage your cash flow more effectively by paying only the interest amount on a regular basis. However, it is important to note that this method does not reduce the principal amount of the loan. Ensure that you are aware of the terms and conditions regarding interest-only payments and understand how it impacts your overall loan repayment.


Part-prepayments involve making additional payments towards the principal amount of your gold loan, apart from your regular EMIs. Whenever you have surplus funds, consider allocating them towards part-prepayments. By reducing the principal amount, you can decrease the interest burden and shorten the loan tenure. Part-prepayments offer flexibility in loan repayment and can help you become debt-free faster.


If you have the financial means to do so, foreclosure is an option to consider. Foreclosure involves repaying the entire outstanding balance of your gold loan before the agreed-upon tenure. By opting for foreclosure, you can save on interest charges and become debt-free quickly.

Repaying your gold loan does not have to be overwhelming. By implementing any of these five easy ways - opting for equated monthly instalments (EMIs), making bullet payments, 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.

In case you are looking to apply for a gold loan, you can do so by visiting the Bajaj Finance website.


While care is taken to update the information, products, and services included in or available on our website and related platforms/ websites, there may be inadvertent inaccuracies or typographical errors or delays in updating the information. The material contained in this site, and on associated web pages, is for reference and general information purpose and the details mentioned in the respective product/ service document shall prevail in case of any inconsistency. Subscribers and users should seek professional advice before acting on the basis of the information contained herein. Please take an informed decision with respect to any product or service after going through the relevant product/ service document and applicable terms and conditions. In case any inconsistencies are observed, please click on reach us.

*Terms and conditions apply

Frequently asked questions

What are the repayment options available for gold loans in India?

 With Bajaj Finance, you have the freedom to select from multiple gold loan repayment options. You can pay the interest on a monthly, bi-monthly, quarterly, half-yearly, or yearly basis as per your convenience. However, you should note that the loan principal amount and any outstanding interest will be due for payment when the loan matures.

Can I partially or fully prepay my loan? Is there going to be a fine?

Yes, you have the option to prepay your gold loan partially or fully before the due date without any extra fees. However, if you decide to close the loan within 7 days of taking it, you will be charged a minimum of 7 days' worth of interest.