What happens if I can't repay the Gold Loan on time?

Failing to repay the gold loan on time can have serious consequences. If you miss an EMI or interest payment, financial institutions start following up with reminders via SMS, email, and calls.

If the repayment is delayed beyond a specified period, usually between 30 and 90 days, the loan provider may initiate the recovery process. They can first auction the pledged gold to recover their dues. They may proceed with legal action for balance recovery if the auction amount falls short.

Missed payments can also hurt your credit score, making it difficult to get other loans from banks or NBFCs in the future.

To avoid such scenarios, it is crucial to be disciplined and pay EMIs and interest amounts on time. If you are facing a temporary cash crunch, speak to your loan provider immediately and request additional time to explain the reasons.