Gold loans have significantly gained popularity in the last few years, especially during the pandemic. What makes gold loans unique among all financing options is their easy availability and eligibility, flexibility of fund usage, quick processing, and multiple repayment options. Furthermore, affordable gold loan interest rates are one of the best features of this credit option.
Steps to repay gold loan through credit card
There is no question of denying that gold is an important financial asset in terms of investment source and growth. Choosing a gold loan in India is one of the best ways to manage financial emergencies. This credit option is accompanied by easy eligibility requirements, which means that anyone can apply for this loan by pledging their high-value gold jewellery as collateral.
Moreover, it is easy to pay off gold loans as the valuable collateral enables lenders to impose competitive gold loan rates in comparison to other unsecured loan types. Besides, a loan against gold ensures faster processing and involves minimal documentation. Since gold loans are convenient to process and approve, financial institutions have come up with multiple repayment options. Although repayment options tend to vary across lenders, it is essential to have prior knowledge about the repayment methods so that you can select the most appropriate one for you.
Pay interest at regular intervals and principal on maturity
This is the first repayment option for gold loan where you can pay off interest at regular intervals (monthly/quarterly/yearly) and repay the entire principal amount at the tenure’s end. You can choose the interest payment interval by assessing your financial capability. Such a provision is beneficial for you as you do not have to worry about principal repayment throughout the tenure and are only liable to pay off the interest component. Thus, before applying for the loan, you must thoroughly research and compare gold loan interest rates offered by lenders and select the one that suits your repayment capacity.
5 ways to repay a gold loan using a credit card
Repaying a gold loan through a credit card offers flexibility and convenience, providing borrowers with various options to manage their loan payments efficiently. Leveraging the features of a credit card can simplify the repayment process while offering additional benefits. Here are five distinct methods that you can explore to repay your gold loan seamlessly using a credit card:
- Direct payment through the lender's website: Many lenders allow direct repayment of gold loans through their website using your credit card. Simply log in to your account, select the payment option, and enter your credit card details to clear your dues instantly.
- Mobile app transactions: Utilise the lender's mobile app to repay your gold loan with a credit card. Access the app, navigate to the payment section, input your credit card information, and complete the transaction hassle-free.
- Auto debit facility: Some lenders offer an auto-debit feature, enabling automatic deduction of your gold loan instalment from your linked credit card. Enrol in this service for a seamless repayment experience without manual interventions.
- Visit the nearest branch: Visit the lender's nearest branch and make the payment using your credit card. The staff will assist you through the payment process, ensuring your loan repayment is completed efficiently.
- Phone payment services: Call the lender's customer service helpline and inquire about credit card repayment options. They might assist you in processing your gold loan repayment via phone transaction, providing convenience at your fingertips.
However, you must plan your repayment carefully and pay credit card bills on time to avoid a debt trap.
