How to Prepay Your Gold Loan to Save Money and Release Your Gold


Gold Loans are secured loans, where one can pledge their gold ornaments as collateral to get a loan from a lender. The loan amount usually depends on the value of the gold jewellery pledged. Gold Loans are attractive because they offer quick access to funds, and the loan approval process is usually faster than other types of loans.

With Muthoot FinCorp ONE, you can Gold Loan from Home in 30 minutes* or at any of 4500+ Muthoot FinCorp Ltd. branches across India

However, like any other loan, with the repayment you have to pay interest due on your Gold Loan amount.

Let’s discuss the Gold Loan prepayment process and how it can help you save money.


Benefits of Prepaying a Gold Loan: This means paying off the Gold Loan before the end of the loan tenure. There are several benefits of prepaying a Gold Loan.

  • Firstly, it reduces the total interest paid on the loan. When you prepay your Gold Loan, the outstanding loan amount reduces, and the interest charged on it also decreases. This can result in substantial savings on the overall interest paid.

  • Secondly, when you prepay your loan, it shows that you are a responsible borrower who can manage their finances effectively. This can help boost your profile, making it easier for you to get loans in the future.


Steps Involved in Prepaying a Gold Loan: Before you decide to prepay your Gold Loan, it is essential to understand the steps involved in the process.

  • The first step is to calculate the prepayment amount. You can do this by contacting your lender and requesting a foreclosure statement. This statement will provide you with the outstanding loan amount, the interest charged on it, and any prepayment charges or penalties applicable. Once you have this information, you can calculate the prepayment amount, which is the outstanding loan amount plus any applicable charges.

  • With Muthoot FinCorp ONE, you can view all your Gold Loan details, top-up history, amount due and the interest accrued at the tap of an app. With its flexible payment options you can be rest assured that

  • The next step is to arrange for the prepayment amount. Once you have the prepayment amount, you can inform your lender of your intention to prepay the loan. You will then have to provide the prepayment amount to the lender and sign the necessary documents to complete the process.
    With Muthoot FinCorp ONE, you never have to worry about this. There are no, there are no pre- closure charges for your Gold Loan. Just pay the interest due with the complete pending final amount, and you can proceed to release the gold either from home or at branch (depending from have you have taken the loan).

  • While prepaying a Gold Loan can save you money, it is essential to note that some lenders may charge prepayment charges or penalties. To avoid such charges, it is crucial to read the loan agreement carefully before signing it. Look for any clauses related to prepayment charges or penalties and understand the terms and conditions associated with them.

So, if you have been considering prepaying your Gold Loan, now is the time to take action. Contact your lender and get all the necessary information about the prepayment process. Calculate the prepayment amount and arrange for the funds.

If you have taken a Gold Loan from Muthoot FinCorp ONE, the process is as easy as it looks. As a Gold Loan customer if you wish to prepay the entire amount to release your gold, you can do so by downloading the app or by visiting the Muthoot FinCorp Ltd. Branch where your pledged gold is stored.

On the Muthoot FinCorp ONE app, all you must do is, on the loan profile page of Muthoot FinCorp ONE app, click the Release Gold button. It will become active once your outstanding loan amount for the parent Gold Loan and all its subsequent top-up loans are paid.

Muthoot FinCorp ONE accepts We accept all major payment methods for the repayment of your Gold Loan on the app. These include net banking, debit card and UPI options. You can also walk into any of Muthoot FinCorp Ltd.’s 4500 branches across the country to make your Gold Loan repayment.

In the meantime, visit the Play Store to download the Muthoot FinCorp ONE app or visit our website today and book an appointment for a Gold Loan from your home or branch to unlock the value of your gold jewellery.

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