How to Repay Your Shriram Loan Against Jewellery

Key Highlights

1. Shriram Gold Loan repayment can be done at a branch, through the Shriram One App, or via online transfer.
2. Repaying on time protects your gold and avoids penal charges on overdue amounts.
3. Under RBI's 2025 Directions, your gold must be returned within seven working days of full repayment.
4. Part-prepayment is allowed and directly reduces your remaining interest.
5. If you know you will miss a payment, contact your branch early. Options are available before the account is classified as overdue.

Repaying your loan against jewellery on time protects your pledged gold and keeps your interest costs from rising. This guide covers every repayment method available for Shriram Gold Loan, what happens at the point of final repayment, and what to do if a payment is delayed.

How to Pay Your Loan against Jewellery EMI or Interest at a Branch

You can visit your nearest Shriram Finance branch and pay your gold loan instalment or interest amount in cash or by cheque. The branch will give you a receipt. Keep this receipt as proof of payment. It is your primary record in case of any dispute.

• Branch payments are usually processed the same day. If you are approaching the end of your loan tenure and want to close the loan at the branch, carry your loan account details and a valid ID. The branch will confirm the outstanding amount including any pending interest before you make the final payment.
• After final payment at the branch, ask for a loan closure certificate and the confirmation of your gold being readied for return. Under RBI's 2025 Directions, you must receive your gold within seven working days.

How to Repay Your Loan Against Jewellery Through the Shriram One App

The Shriram One App lets you view your outstanding balance, due dates, and repayment history at any time. You can make payments through the app using UPI, net banking, or debit card.

• To pay through the app, log in, navigate to your gold loan account, and select the payment option. Enter the amount you want to pay and confirm. The payment is typically credited to your account within one business day.
• Set a reminder on your phone for three days before the due date. Initiating the payment two to three days before the due date gives enough time for processing and avoids a late payment flag on your account.

How Part-Prepayment Reduces Your Total Loan against Jewellery Cost

If you have additional funds at any point during the loan tenure, you can make a part-prepayment on your gold loan. A part-prepayment reduces the outstanding principal. As the principal falls, the interest charged on subsequent periods also falls.

On a ₹ 1 lakh* loan at 10%* p.a., if you make a part-prepayment of ₹ 20,000* after three months, you are now paying interest on ₹ 80,000* for the remaining tenure. Over a 12-month loan, this kind of prepayment can save a meaningful amount in total interest.

The interest rate and other figures in the example are for illustrative purposes only. Actual rates may vary.

What Happens to Your Gold After Full Repayment

Once you complete your final repayment, the lender processes the loan closure and initiates the return of your pledged jewellery. Under RBI's Lending Against Gold and Silver Collateral Directions, 2025, your gold must be returned within seven working days.

Collect your gold in person at the branch. Check each piece against the original pledge receipt you received when you pledged the gold. If there is any discrepancy, raise it at the branch before leaving.

Ask for a loan closure certificate. This is your proof that the loan has been fully repaid and no further obligation remains. Keep it with your other loan documents.

For more specific information on key changes regarding your gold loan terms and conditions, read our article on 9 Key RBI Gold Loan Rules Every Borrower Must Know.

What to Do If You Cannot Make a Payment on Time

Missing a scheduled payment on a loan against jewellery carries a cost. Your lender will apply penal interest on the overdue amount from the due date until payment is made. The penal rate depends on your loan agreement.

• More importantly, if a bullet repayment gold loan remains unrepaid at maturity, or if the LTV exceeds the permissible limit for 30 consecutive days, the account may be classified as a Non-Performing Asset under RBI's 2025 Directions. Once this happens, the lender may initiate auction proceedings after giving you prior written notice.

• If you know a payment will be delayed, contact your lender’s branch before the due date. This gives you the most options. A branch conversation before the due date is more productive than one after a penalty has already been applied.

Learn more about gold loan repayment options and how to choose between EMI and bullet repayment options.

To understand gold loan eligibility at Shriram Finance, visit eligibility criteria for Shriram Gold Loan.

FAQ

Can I repay my gold loan before the tenure ends without extra charges?

Shriram Gold Loan has zero foreclosure charges. You can close your loan early and collect your gold without a significant financial penalty. Confirm the applicable foreclosure charge in your Key Fact Statement or loan agreement before signing.

How do I get proof that I have fully repaid my loan against jewellery?

Ask for a loan closure certificate at the branch when you make your final repayment. This document confirms the loan is closed and no outstanding amount remains. It should be issued in your name and reference your loan account number. Keep it with your financial documents.

What happens if there is a dispute about my repayment amount?

If you believe the outstanding amount shown by your lender is incorrect, ask for a detailed account statement showing each payment made, the interest charged, and any fees applied. Compare this against your own payment records and receipts. If the discrepancy cannot be resolved at the branch level, escalate to the lender's grievance officer in writing. If unresolved within 30 days, you can escalate to the RBI Integrated Ombudsman Scheme.

Can someone else repay my gold loan on my behalf?

A third party can make a payment towards your gold loan account using your account details. However, the loan closure and gold collection generally require the borrower or an authorised representative to be present at the branch with valid identification.

After I repay, how do I track my gold loan repayment history for credit history?

Your gold loan repayment history is reported to credit bureaus. You can access your updated CIBIL score and credit report from cibil.com after the loan is closed to verify the status has been updated. Timely repayment of your gold loan positively reflects on your credit profile and can improve your eligibility for future loans.