What Are the Repayment Options Available for Women with Gold Loans?

Women taking gold loans can choose from flexible repayment structures offered by most lending institutions. Here are further details:

1. Repayment through Interest-Only EMIs: Applicants can opt to pay only monthly interest instalments during the loan tenure and repay the principal at maturity, reducing the immediate outflow burden.
2. Partial Principal Repayment: Lenders allow making part payments towards principal at regular intervals, along with flexible interest payouts. It helps reduce overall interest outgo by repaying some principal upfront.
3. Easy Monthly EMIs: This is a popular option to repay fixed monthly instalments, including principal and interest, over longer tenures of 12-24 months. This provides discipline.
4. Bullet Repayment: This is typically a one-time lump sum payout of the entire principal and interest at maturity, usually within 6-12 months. It is suitable if there is a large, expected inflow.
5. Partial Prepayments: This option allows borrowers to pay lump sum amounts additionally towards principal as and when funds are available, ahead of tenure. It helps reduce interest.
6. Interest-only Monthly Payment: This involves paying only accrued monthly interest regularly without principal. This approach offers a manageable outflow but doesn't reduce the loan amount.
7. Full Repayment: This entails early closure by repaying the entire outstanding principal and interest ahead of schedule. This saves on interest costs.

Choosing the right structured repayment option helps women applicants align with anticipated cash flows and service the loan comfortably till closure.