InvestorQ : Is it important for me to focus on the repayment structure of the gold loan?
Anjana Aiyar made post

Is it important for me to focus on the repayment structure of the gold loan?

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Arya Nanda answered.
2 years ago
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As a gold loan borrower you need to clearly understand the repayment structure of the gold loan. There are various options. Gold loans normally have flexible repayment structure as compared to any other loans. In every bank, the repayment structure of gold loans might differ. In most banks, you can opt for paying just the interest amount through the period and at the end of the tenure, you can pay the principal amount and take back your gold. This is the preferred model. But some banks also insist that you pay part of your principal each month. This may work out to be more expensive for you. So, it’s important to understand the terms carefully before availing the gold loan. Above all, if you do not repay on time, the bank is entitled to auction the gold after giving due notice. Be cautious of that.

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