Transorming Dreams into Reality
The eligibility criteria for a gold loan are very simple and easy to meet. Anyone who has a gold ornament can easily procure funds by pledging it. The rate of interest on the gold loan is less than other loan types like unsecured loans. Repayment of the gold loan is very easy because of the lower rate of interest. There are some ways for the repayment of gold loans on time.
Pay Interest as EMI and Principal at Maturity:In this option, you can repay the interest amount as monthly EMI and principal amount at the end of the tenure in full. This method helps to reduce the repayment burden. But you should keep in mind that it can be difficult to pay the full principal amount. Repaying your interest and principal together helps to reduce the debt burden. Equal Monthly Installment: This option is best for salaried people because there is a monthly inflow of cash in the bank account. EMI include both principal and interest amount that is to be paid in the equal monthly amount. Bullet Repayment:In the Bullet Repayment Method, the whole amount of principal and interest is to be paid at the end of the easy gold loan tenure. Some lenders charge a higher rate of interest for the bullet repayment method. Interest is calculated each month but the amount is paid at the time of maturity. Partial Payments:In this method, there is no need to pay regular EMI. You can make a partial repayment when it is convenient to you. When you repay your principal amount initially as a partial payment then the interest amount reduces on the outstanding amount. You can also repay your amount before maturity. This is called foreclosure and lenders usually charge for this.
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