Bullet repayment in Gold Loans

Repay Your Gold Loan In One Shot:

The Indian Gold Loan market is expanding at a CAGR of 12.75% and is expected to reach Rs.6275.40 bn by 2025. Sometimes, we need to raise a loan to meet some medical emergency or educational purpose. If you are a small and medium enterprise owner, you may need some quick cash for business purposes. Also, the scheme is suitable for those with longer cash flow cycle or do not have definite regular monthly cash flows. The Gold Loans extended by Muthoot Fincorp are beneficial in such situations.

Let’s go through some of the different Gold Loan repayment options Muthoot Fincorp ONE offers to its customers.

Gold Loan Bullet Repayment: Bullet repayment is an option to pay the principal with the interest of the entire tenure as a single shot. You need not make any payments till the end of the term. The total interest and principal are paid as one shot hence the term bullet payment. The borrower can make payments in between also as per his cashflow. Monthly interest remittance will help to keep the interest rate at the lowest rate.

Flexibility In Repayments: Since the bullet scheme offers ultimate flexibility in repayments within the loan tenure, the borrower can pay part payments daily, weekly , monthly as per his choice. The part payments will reduce the principal balance and hence the overall interest cost. For a trader, he/she can choose to repay daily /weekly since he/she has daily cashflow in most of the cases. For Salaried, they can choose to pay monthly like in an EMI scheme. This mode of payment will reduce your interest cost and the pressure of repaying the total loan amount at the end of the term.

Partial Payments: Partial payment is a customer-centric approach. You can make payments of interest and principal components as and when you choose without the restriction of EMI. Interest is calculated daily on the outstanding loan amount. The sooner you pay the principal amount, the less interest you pay. You will be more comfortable as you can repay according to your financial situation. With Muthoot Fincorp ONE, one of India's most trusted financial institutions, you can pay back your Gold Loan earlier and ensure complete transparency and safety throughout your relationship.

Interest In EMI & Principal At Closure: In this option, you can pay interest monthly, like EMI, and the principal at maturity. You will be relaxed to settle the principal at the end of the tenure by just servicing the monthly interest.

Above all, pre closures are permitted without any pre closure charges. However minimum 7 day’s interest is charged if pre closed before 7 days.

Our support team would be happy to help you choose the right option based on your financial planning.

We are one of the most trusted financial institutions in the country, with a legacy of 137 years. Our flexible Gold Loan repayment options will help you to manage your finances well.

Chat on Whatsapp | Branch Locator | Email us - customercare@muthoot.com | Download App