What are the ways to repay a gold loan?

Published March 3, 2023

Pay interest as EMI, Make partial payments, Bullet repayment, Regular EMI option

Gold loan is a great financial tool to get immediate fun for emergencies. You can give your gold jewelry as collateral and get funds during tough financial times. You need to submit a few documents to get the gold loan at a good interest rate.

Anyone can avail gold loan as you need to pledge the gold ornaments as collateral to get the loan amount. There are several ways to repay the loan amount, and you can choose the one that is the most suitable financially. Here are four ways to repay the gold loan:

Pay interest as EMI:

You can repay the interest that is due on loan as per the EMI schedule that is given to you by the lender. You can make a single payment monthly to pay off your loan amount. You have to make the payment before the maturity date or at the time of maturity of the loan. Usually, borrowers prefer this form of repayment because it helps pay off the interest without worrying about the principal amount.

Make partial payments:

When you go for partial payments for the repayment of your gold loan, then you are not required to adhere to the EMI schedule that the lender provides. You can make partial payments of the interest or the principal amount accordingly. You can make the repayments based on your financial capabilities. You end up saving a lot on the serviceable interest if you pay the principal amount at the beginning. To know more about the calculations, you must check out the interest calculator for goal loan.

Bullet repayment:

Under this plan, you have to pay both interest and principal at the end of the loan's tenure. You don't have to worry about the repayment of the gold loan, and you do not need to adhere to the EMI schedule.

You can pay the entire payment when the loan term is finished. The best gold loan repayment amount is calculated at the end of each month and becomes payable only at the end of the tenure. So you can choose to repay the amount in a single shot.

Regular EMI option:

A regular EMI is the best plan for salaried people who have a fixed monthly income. The EMI amount under this category is based on the principal and interest amounts. It is also approved sooner because it is favorable for the salaried person. There are no lock-in periods for the loan amount, but they do have a short repayment tenure for the borrowers.

The maximum tenure for a gold loan is 5 years. You have to pay the outstanding loan amount and the interest due by the end of the tenure period, or the loan account will stand closed. You have to make sure to pay the loan amount successfully.


There are four different ways to pay the gold loan amount, so you can choose the one that is suitable for you. If you want to pay back the amount entirely, then choose the bullet repayments because that will make your repayments hassle-free and fast.

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