What are some simple ways to manage and repay a gold loan?

Repaying a gold loan can be managed efficiently by choosing a repayment method that aligns with your financial situation. Most lenders offer several repayment options:

• Equated Monthly Instalments (EMIs): You repay the principal and interest in fixed monthly amounts over the loan tenure.
• Interest-only payments: You pay only the interest regularly and the principal at the end of the tenure.
• Bullet repayment: Both the principal and accumulated interest are paid in a single lump sum at the end of the loan period.
• Part-payments: Some lenders allow you to pay portions of the principal or interest as and when you have surplus funds.

Arrange for your gold loan repayments to be automatically deducted from your account so you never miss a due date. If possible, make part-prepayments to reduce the principal and save on interest. Always keep track of your repayment schedule and maintain clear communication with the lender if you anticipate any difficulty in repayment. Timely repayment ensures the safe return of your gold and helps maintain a positive credit history.