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Repayment is the biggest concern when one thinks of applying for loans. At the same time, there is no other way out than obtaining a loan during circumstances with dire financial requirements.
Gold loans are the recommended option in such a scenario. The customer need not have to worry about procedural delays, low credit score, or arrange for a guarantor. Anyone requiring money can mortgage the gold asset and obtain the money depending on the value of the security.
In other types of loans, the debtor has to abide by the repayment directives by the bank or financer. However, it is the borrower who chooses the method and frequency of repayment, in the case of gold loan.
He or she can select to pay the interest in EMIs and opt to repay the principal on the date of maturity, decide on part payment of principal and interest in a flexible manner, go for basic bullet repayment or pay the interest and principal in EMIs.
Manappuram Finance is known for offering the maximum value, helping the customer meet financial needs with minimum hassles. Besides, it offers the lowest interest rate on gold loans. Further, the company provides online gold loan option to facilitate quick receipt of money when urgent.
What are the Easy Repayment Options for Gold loans?
We are discussing here the easy repayment options for gold loans. As we have said here, the feasible repayment criterion is the main aspect that makes a loan against gold a better option than any other type of loan. Furthermore, personal loans and business loans have extensive procedures and phenomenally high-interest rates.
The easy repayment options are elaborated in the succeeding segments. You can reach out to Manappuram Finance if you want to discuss more about gold loan rates, the present interest rate on the gold loans, how you can register for an online gold loan, etc. Our executives will assist you in understanding the entire aspects concerning a gold loan, including the gold value and interest rate on gold.
1. Repay the Gold loan Interest and Principal as EMI
This method would be highly suitable for the salaried class from both government and private sectors. They would be receiving a fixed income on a specific day of every month. The individual can request the financier or lender to deduct EMI (which comprises repayment of interest and principal) on a particular day. The financier can be given approval for the same and the automatic deduction of EMI would not require your involvement every month.
2. Repayment of Gold loan Interest as EMIs
Alternatively, the borrower can choose to make the repayment of interest accruing on a gold loan on a monthly basis. In this case, the principal amount can be paid when the gold loan matures. The financial burden on the borrower would be reduced significantly when he or she selects this repayment method. Moreover, the debtor would be able to accumulate enough money, by the time the maturity date arrives.
3. Partial Payment Option
Perhaps, this repayment option is only possible in a loan against gold making the gold loan from a reputed finance firm a better choice. Under the partial payment option, the client can go for partial repayment of the principal amount and accrued interest as per one’s convenience. By repaying the major share of the principal amount, the interest accruing further would come down significantly. This repayment methodology is ideal for self-employed individuals, businesspersons, etc. Since the interest rate on the gold loan is calculated on a daily basis the partial repayment of the principal amount will have a positive impact and bring down the subsequent repayment burden. Discuss with the financier to confirm the process followed by them. It may also be possible to switch from one repayment option to another midway through the repayment cycle. This helps in opting for another repayment methodology if your financial condition is not going as calculated.
4. Single Repayment Scheme
Single repayment or basic bullet repayment is another repayment option available on gold loans. As per this, the debtor can opt to pay the complete amount (i.e., interest rate on gold + principal amount) on maturity. Those engaged in business or those expecting the receipt of a lump sum amount can choose this gold loan repayment option. On the other hand, this type of repayment is not advisable for long-term loans against gold. Individuals considering a gold loan for up to 12 months can consider this scheme. Otherwise, it may turn burdensome for the borrower. The long period will lead to compounding interest piling up and the outstanding loan amount will become burdensome, beyond the financial capacity of the individual. It may also happen that the financier may auction the gold if the borrower fails to repay the loan amount for a prolonged time.
Increase in Popularity of Gold loans for the Past Couple of Years
Several factors have been instrumental in the increase in popularity of gold loans in the recent past. The drop in the interest rate on gold loans, convenient processing, quick approval, and the hassle-free procedure have been the basic factors that led to more people opting for gold loans.
Entrepreneurs, self-employed personnel, private employees, laborers, and others have been facing acute financial distress in the past couple of years, mainly due to the unforeseen pandemic. The increased financial requirements resulted in individuals turning to gold loans.
We are happy to be one of the top NBFCs in India that serves hundreds of thousands of customers. Our clients have lauded the low interest rate on gold, high value for the gold asset, supportive procedure, and online gold loan facility available at Manappuram Finance.
The directives from the Reserve Bank of India regarding the procedures followed in gold loans and other relevant issues have been supportive in extending support to the needy. Our pan India presence helped in serving the maximum customers across the country effectively.
A gold loan is undoubtedly the best option for meeting the financial needs during any crisis. The easy repayment options make the loan against gold viable for anyone from any background. Imagine the daunting process at banks and finance firms when you apply for a business loan or a personal loan. The most challenging factor would be the credit score or credit history.
Banks may reject the loan application or reduce the approved loan amount if the credit score is not in the required range, thereby causing unwarranted difficulties and complexities.
Manappuram Finance – the Right Choice for Gold loan
If you are planning to borrow money through a gold loan, you are welcome to Manappuram for any kind of financial support. The features that make Manappuram’s gold loans the best gold loans are:
· Online gold loan facility that is available 24x7. An individual requiring money can apply for the loan any time of the day and receive the money in his or her savings bank account instantly.
· Maximum value for the gold mortgaged, which would help the borrower to receive the money with the minimum gold pledged.
· Manappuram has the lowest interest rate on gold loans. Therefore, the borrower will not be paying much interest on loan against gold.
· Supportive team to help the customer in the best possible way.
· Trustworthy financers with pan India reach.
We suggest that you should opt for a gold loan in case of any financial needs. Also, you can consider the online gold loan facility offered by Manappuram Finance. It will help you in receiving funds even at odd hours.