Re-pay your gold loan using Personal LoanGold ornaments are precious assets that many people use as a backup to raise immediate money during financially challenging times. Taking a loan against the gold jewelry is known as a gold loan. The gold is also used as a mortgaging asset while applying for a long-term loan. It is one hassle-free way of arranging fast money when a financial crisis strikes. The process of availing gold loans is quick inclusive of minimal documentation and a low rate of interest. So, how do you repay a gold loan in a stipulated period? Are personal loans a good option to clear off gold loans?
Nowadays, personal loans are easily available online through instant loan apps. A personal loan is quite handy to clear debts and pending bills. Hence, you can unlock your mortgaged gold using a personal loan with much ease. The personal loan application process is super-fast wherein borrowers can avail the loan amount approved within 24hours.
Following are certain ways to re-pay your gold loan using a personal loan:
Break-up payment structure: This means borrowers can clear the gold loan making partial payments of the interest and principal amount using a personal loan. Mostly the principal loan amount is required to be paid in full at maturity, otherwise borrowers are only required to pay the interest amount during the entire loan tenure and not take the burden of the principal amount. This break of payments simplifies the repayment of gold loans.
Bullet payments: This is a one-shot repayment method where borrowers are not liable to pay the interest/principal amount during the loan tenure. Instead, the repayments can be made at one shot during the end of the loan tenure. Undoubtedly, the interest is calculated every month but repaid at the end at one go.
Basic EMI payment: Checking the stability of regular income in a borrower’s bank account, a regular EMI option is suggested to clear the gold loan. Here, the EMI includes both the interest rate and the principal amount.
Advantages of Personal Loan to Clear a Gold Loan
Collateral free: Being unsecured in nature, personal loans do not demand collateral or an asset to be submitted. Hence, it can be processed quickly to further repay the gold loan.
Hassle-free documentation: As the complete loan process is done online, the documentation is paperless and minimal. Borrower’s KYC details are a must while availing a personal loan. This is verified online through the app in real-time. Ensure you submit authentic details to face no delay or rejection.
Quick disbursal: Once the documents are verified, loan approval and disbursal are done within 24hours in the borrower’s bank account.
Versatile use: Personal loans are trusted for a variety of purposes. It is a versatile loan that can be used for travel, education, medical emergency, debt consolidation or managing repayment schedules of a gold loan.
By taking a personal loan and repaying a gold loan on time can keep the borrower’s credit score stable. This gives an advantage of faster loan approval and a low interest rate for future loans.