What is the maximum repayment period available for a gold loan calculated per gram?

When you take a gold loan based on the value per gram, the tenure or the period for which you can keep the loan is usually limited to a maximum of 12 months. This rule applies whether you choose to repay your loan through regular monthly instalments (EMIs) or opt for a bullet repayment, where the full amount is paid at the end of the term. Here’s what you should know about gold loan tenures:

• Maximum tenure: Most lenders will not offer a gold loan for more than 12 months in line with current RBI norms.
• Flexible options: While 12 months is the upper limit, some lenders may let you to choose a shorter tenure if you prefer to repay sooner.
• End of tenure obligations: At the close of your loan period, you must repay the entire outstanding amount which includes both the principal and the accrued interest, to get your gold back.
• Renewal or extension: If you need more time, some lenders may let you to renew or extend your loan. This usually involves fresh documentation, a new gold valuation, and ensuring that the loan-to-value (LTV) ratio remains within regulatory limits.

Before you finalise your gold loan, make sure to have a clear conversation with your lender about how long you’ll have to repay and what the repayment schedule will look like. Knowing these details up front will help you manage your money better and ensure there are no unexpected issues when it’s time to pay back the loan or if you need to renew it later on.