Manipal Fintech Blog

Tag: gold loan repayment

  • Monthly vs Bullet Gold Loan Repayment – Pros & Cons

    Monthly vs Bullet Gold Loan Repayment – Pros & Cons

    Gold loans are a convenient option for receiving funds quickly by providing gold as security. However, one needs to be mindful while taking out a gold loan because one needs to do thorough research to get the most advantageous payment method. When choosing to repay, there are two primary schemes: monthly and bullet repayments plan for gold loans. Selecting the appropriate strategy is critical to sound financial planning because it can significantly affect your cash flow and stability. We will be discussing the monthly vs bullet gold loan repayment schemes along with their pros and cons

    Understanding Monthly Repayment

    Equated Monthly Installments (EMIs) are a type of monthly gold loan repayment procedure in which you pay an agreed-upon amount every month on a fixed date. Each instalment includes the principal and interest components. This arrangement makes the payback amount more reasonable for borrowers by spreading it out over the length of the loan.

    gold loan emi repayment

    There are multiple ways to repay a gold loan, you can explore more about different methods to repay or close your jewel loan account. 

    Advantages of Monthly Repayment:

    • Continuous and Manageable Payments: Borrowers can make predictable and consistent payments allowing them to manage their budget.
    • More accessible to Budget and Plan Finances: The monthly and consistent EMI scheme provides a planned budget for each month that contributes to financial stability.
    • Reduces total interest paid on Loan: Making regular monthly repayments helps in reducing the overall interest paid over the loan term.
    Get easy EMIs with Manipal Gold Loan

    Apply Now

    Disadvantages of Monthly Repayment:

    • Continuous Financial Commitment: Although it can benefit some, others might find it burdensome to make monthly payments if they do not have a steady source of income.
    • Potential Impact on Monthly Cash Flow: Monthly EMIs can cause strain on monthly cash flow, putting a limit on other crucial expenditures.

    Understanding Bullet Repayment

    settle the entire gold loan amount

    Borrowers who opt bullet repayment plans for thier gold loan, including the principal and interest, at the end of the loan tenure. This method is favourable for those who prefer a flexible payment method and wouldn’t like to make monthly payments.

    Advantages of Bullet Repayment:

    • Flexibility in Managing Finances: Borrowers are not required to make regular payments, offering more flexibility throughout the loan tenure.
    • Suitable for Irregular Income: Ideal for individuals with irregular income streams or those expecting a lump sum amount, such as a bonus or investment maturity.

    Stripe code direct

    Choose Manipal Fintech for Flexible Repayment

    Apply Now

    Disadvantages of Bullet Repayment:

    • Larger One-Time Payment: The total repayment at the end of the tenure can be substantial, requiring careful financial planning.
    • Higher Interest Accumulation: Interest accumulates over the loan period, potentially resulting in a higher overall cost than monthly repayments.

    Factors to Consider When Choosing Between Monthly and Bullet Repayment

    assess the gold loan repayment

    1. Financial Stability: Evaluate your regular income and financial discipline. Monthly repayments may suit those with steady incomes, while bullet repayments can benefit those with fluctuating incomes.
    2. Loan Tenure: The gold loan tenure affects the overall interest cost. Longer tenures may accumulate more interest in a bullet repayment structure.
    3. Interest Rates: Compare the interest rates offered for both repayment methods. Bullet repayments may have slightly higher rates due to the accumulation of interest over time.
    4. Personal Financial Goals: Align the repayment option with your short-term and long-term financial objectives. Monthly repayments may provide more stability, while bullet repayments offer flexibility.
    5. Cash Flow Management: Assess your cash flow needs and availability. Monthly repayments require consistent cash flow, while bullet repayments demand a lump sum.
    Flexible gold loan repayments with Manipal Fintech

    Apply Now

    Manipal Gold Loan Schemes and Benefits

    Manipal Fintech offers many gold loan benefits, from higher loan amounts to simplified documentation, asset protection, multiple bank choices, and while considering our customers needs, and knowing the need of monthly vs bullet gold loan repayments needs, we introduced below 3 schemes to repay a Manipal gold loanmany more valuable advantages.

    • SahiMax:  It is ideal for borrowers who prefer monthly repayments. It allows for consistent EMIs, making it easier to manage monthly expenses.
    • SahiDelight: A bullet repayment option that offers flexibility, perfect for those expecting a lump sum payment in the future.
    • SahiFlexi: A hybrid option that combines the benefits of monthly and bullet repayments, providing a flexible gold loan with an overdraft facility, letting you pay interest only on the amount used and close the loan when you no longer need funds.

    A borrower who chooses SahiMax can make loan repayments in EMIs with a fixed monthly payment. In contrast, the SahiDelight gold loan scheme lets the borrower make a lump sum repayment at the end of the tenure, offering flexibility in cash flow management. SahiFlexi enables the flexibility to make partial payments during the tenure with a final settlement, offering the best of both worlds.

    Conclusion

    Various factors like financial stability, loan tenure, and personal financial goals can be weighed when deciding on the proper repayment method for a gold loan. But Manipal Fintech’s customer-centric solutions to the above dilemma ensure borrowers can select a plan that aligns with their financial situation. Manipal Fintech’s range of gold loan schemes, namely SahiMax, SahiDelight, and SahiFlexi, cater to different repayment choices, giving them the autonomy to decide the payment options on their terms. It is essential to understand the implications of each payment method for healthy financial planning, regardless of whether you prefer a flexible approach with bullet repayments or a steady monthly gold loan repayment schedule. By carefully weighing your options and making the most of the gold loan repayment process, you may effectively repay your gold loan and meet your financial objectives.

    Looking for a quick and hassle-free gold loan with good repayment option according to your financial goals.

    Apply for a gold loan 24/7 on www.manipalfintech.com, or call at 18003098440

  • Everything You Need to Know about Gold Loan Tenure

    Everything You Need to Know about Gold Loan Tenure

    Gold loans have become increasingly popular due to their accessibility and quick processing times. These loans allow individuals to leverage their gold assets for immediate financial needs. One crucial aspect of a gold loan is its tenure, which dictates the repayment period. 

    The tenure of a gold loan is crucial as it affects your repayment schedule and interest costs. Having the option for flexible repayment options allows you to plan your loan journey smartly. Considering the need, Manipal gold loan offers three different gold loan schemes that allow you to customize your repayments. 

    First, let’s understand gold loan tenure and how it affects your gold loans.

    What is a Gold Loan Tenure?

    Gold loan tenure refers to the period during which borrowers can utilize the gold loan amount before repayment is required. It is a crucial aspect of gold loans as it determines the duration of the financial commitment and the repayment schedule. 

    The maximum tenure on a gold loan is usually 24 months for long-term loans repaid in EMIs, and six months for short-term loans repaid in lump sums. Institutions and NBFCs offer various repayment options for gold loans. These may include equal monthly installments (EMIs), bullet payments (repaying the principal at the end of the tenure), or flexible repayment schemes tailored to the borrower’s income sources.

    For example, if you opt for a gold loan tenure of 12 months, you have one year to repay the loan. Let’s consider a scenario where you borrow ₹1,00,000 with a tenure of 12 months at an annual interest rate of 10%. This implies a monthly installment of approximately ₹8,333 (EMI). At the end of the 12-month tenure, you would have repaid a total of ₹1,10,000, which includes the loan amount and the interest accrued over the year. This tenure structure allows borrowers to plan their financial commitments and manage their cash flows efficiently.

    Short Term vs Long Term Gold Loan Tenure

    Basis Short Term Tenure Long Term Tenure
    Duration Typically ranges from a few months Extends beyond a year
    Purpose Ideal for immediate financial needs or short-term expenses Suitable for larger financial requirements or long-term projects
    Monthly Payments Higher due to the shorter duration Lower, spreading the repayment over a longer period
    Total Interest Paid Less compared to long-term loan Maybe higher due to the extended duration
    Flexibility Offers quick repayment and flexibility Provides a lower monthly burden but may result in higher interest paid
    Apply now to get an instant doorstep gold loan

    Apply Now

    Short-term gold loan tenures are suitable for addressing urgent financial requirements, such as medical emergencies, education expenses, or agriculture needs. This can help you to get lower interest rates on your gold loan and make your repayment easier.

    On the other hand, long-term gold loan tenures are beneficial for larger financial endeavors like business expansions or home renovations. While they offer lower monthly payments, borrowers may end up paying more interest over the extended loan duration.

    Can I Extend the Gold Loan Tenure?

    Yes, some gold loan providers like Manipal fintech provides facility to refinance or balace transfer schemes to extent loan tenure. For instance, if there’s a temporary financial setback or unexpected expenses, extending the tenure can ease your monthly repayment burden. 

    Alternatively, you can explore other options to extend your gold loan tenure. Manipal fintech offers flexible options like Balance Transfer (BT) and refinances to facilitate tenure extension. 

    • Balance Transfer (BT): This feature allows borrowers to shift their existing gold loan to Manipal Fintech from another lender. Beyond extending your loan tenure, this can help you to get lower interest rates and better repayment plans. It helps reduce financing costs and improve overall loan management.
    • Refinance: Refinancing involves renewing your existing gold loan. Sometimes, at the loan closure, you are not able to make complete repayment, in that case, you can use the refinancing option to renew your loan. Borrowers may opt for refinance to secure better terms, extend the tenure, or adjust the repayment structure based on their current financial situation.

    If you are looking for a loan with a longer tenure, you may explore property loans. However, property loans have more specific documentation, terms & conditions. It’s advisable to check gold loans vs property loans to know which is better for you.

    Tips to Choose the Suitable Gold Loan Tenure

    Choosing the right gold loan tenure is essential for effective financial planning. Here are some tips to help you decide:

    1. Assess Your Financial Needs: Consider the purpose of taking the gold loan. A shorter tenure may be suitable if you need funds for short-term expenses like medical emergencies or agriculture needs. A longer tenure may be suitable for long-term investments or business expansions.
    2. Evaluate Repayment Capacity: Assess your monthly income and expenses to determine your repayment capacity. Choose a tenure that allows you to comfortably repay the loan without straining your finances.
    3. Interest Rate Consideration: Understand the interest rates lenders offer for different tenures. To make an informed decision, compare the total interest payable over the loan period for various tenure options.
    4. Flexibility Needs: Consider your loan repayment flexibility requirements. Some borrowers prefer fixed monthly installments (EMIs), while others may opt for bullet payments or flexible repayment schemes based on their income sources.

    Manipal Gold Loan Scheme For Easy Repayment

    Manipal Fintech offers a range of gold loan plans tailored to meet diverse borrower needs:

    1. SahiMax (Monthly Interest): This scheme allows you to pay only the monthly interest and the principal amount at loan closure, providing flexibility in managing your cash flows.
    2. SahiDelight (Single Repayment): With this scheme, you can pay the interest and the principal amount in a single repayment at loan closure. It simplifies the repayment process and offers convenience.
    3. SahiFlexi (Overdraft on Gold): SahiFlexi provides an overdraft facility on your gold assets, allowing you to withdraw funds as per your usage. You pay monthly interest based on the amount utilized, offering flexibility and cost-effectiveness.

    These schemes offered by Manipal Fintech cater to different borrower preferences and financial goals. Choose the one that aligns with your repayment capabilities and financial objectives for a smooth borrowing experience.

    Bottom Line

    Understanding gold loan tenure is crucial for making informed financial decisions. Manipal Fintech’s flexible repayment options and borrower-friendly features make it a preferred choice for individuals seeking gold loans. Whether you need short-term liquidity or long-term financial support, Manipal Fintech gold loans offer tailored solutions to meet your needs while ensuring a smooth borrowing experience.

    Looking for an instant loan? Avail a gold loan with Manipal Gold Loan and get Instant approval with low interest rates.

    Apply for a gold loan 24/7 on www.manipalfintech.com, or call at 18003098440

  • Gold Loan Repayment – 4 Ways To Make Gold Loan Payment Online

    Gold Loan Repayment – 4 Ways To Make Gold Loan Payment Online

    Introduction:

    Gold loans have emerged as a popular financial solution, leveraging the inherent value of gold assets to meet immediate financial needs. A gold loan is a type of secured loan where borrowers pledge gold jewelry or assets to avail funds from a financial institution. It’s a convenient and quick solution for urgent financial requirements without extensive paperwork or credit checks. 

    If you’re considering taking out a gold loan, it’s important to understand the key factors that will impact your borrowing experience. These factors include the gold loan rate of interest you’ll be charged each month, the value of the gold you’ll be using as collateral, the estimated timeframe for receiving your loan funds and the most important factor is repayment. By having a thorough understanding of these factors, you can make informed decisions and ensure a smooth borrowing experience. 

    In this blog, we will discuss different gold loan repayment methods. We will dive deep into each way to repay your gold loan. Before we proceed, let us first understand what a gold loan repayment is.

    What is Gold Loan Repayment?

    Like every loan, when you get a loan against gold items, you agree with predefined loan time, amount, and interest rates. By the agreed time frame, you have to pay the loan amount and interest amount to the lender back. This process of paying your gold loan amount back is called gold loan repayment.

    In other words, Gold loan repayment is the process by which borrowers return the borrowed amount along with interest to the lender. There are various repayment options available when it comes to lending gold. You can choose to pay monthly interest and settle the principal amount at the time of closing. Some finance companies and banks offer gold loans with different types & easy repayment plans. To find the best option and lender for your needs, it’s important to conduct thorough research before making a decision. 

    Before lenders usually accepted the repayment in cash only, nowadays, lenders accept repayment in the form of cash, cheques, or online transactions. The repayment period or tenure varies, and borrowers must adhere to the agreed-upon terms to reclaim their pledged gold. 

    Looking for a gold loan? Apply now & get approval within 30* mins

    Apply Now

    Different ways to repay a gold loan-

    Paying back a gold loan can be done in different ways, and each option has its advantages based on your situation. Here are some common ways to repay a gold loan:

    How to make gold loan payment online

    1. EMI (Equated Monthly Installments):

      When a borrower takes a gold loan, they need to repay the loan amount along with the interest charged on it. There are two common methods for repaying a gold loan based on EMI (Equated Monthly Installment). 

      Gold Loan EMI can be paid in 2 ways-

      1. Pay Interest-only EMI – One method is paying a fixed monthly interest amount throughout the loan tenure and repaying the loan amount at the loan closure. 
      2. Monthly Loan Repayment EMI – The other method involves paying a fixed amount including both the interest and principal amount monthly, which can become a burden for the borrower.

      To know more about your gold loan, repayment, and EMI you can check our gold loan calculator. 

    2. Bullet Repayment:

      Bullet Repayment, also known as a single repayment, is a suitable option for individuals with irregular incomes, as well as for MSMEs and members of the agrarian society who are investing their gold loan into their businesses to generate profits after a certain period. 

      At the same time, farmers spend their gold loan on sowing or harvesting. Thus, the benefit for their expenditure i.e. profit is available only after completion of sales activities. So, this repayment option benefits the people who have to wait for their profit for a long time.

      This gold loan repayment method provides flexibility and allows borrowers to make a one-time payment at the end of the loan term, rather than having to make regular payments throughout the loan period. 

      Bullet repayment for gold loans can be particularly beneficial for those who are seeking to invest in their business ventures and need some time for their investments to mature before being able to repay the loan. 

    3. Part – Prepayments

      When it comes to loan repayment, the Part-prepayment method can be a useful option for borrowers who have the financial capability to make partial payments of the principal and interest amount.

      This method allows borrowers to adjust the repayment schedule at their convenience. By paying a lump sum amount right at the beginning, the borrower can significantly reduce the total interest payout. However, it is important to note that part payment is only beneficial if a significant amount of money is paid at once.

      Making small part payments may not result in significant savings, particularly if the financial institution charges extra for prepayment. Therefore, it’s important to do the math and evaluate whether the Part-prepayment method is the right choice for you.

    4. Foreclosure

      Loan foreclosure simply means to close your loan before the agreed time. When you take a gold loan, you have the option to foreclose it by paying off the entire borrowed amount in one go, before the scheduled loan closure time. This saves you money by reducing the interest payable and allows you to get your gold back sooner. Even if you have already made a few EMI payments, you can still opt for foreclosure. 

      However, it is important to note that some lenders may charge a foreclosure fee, which can offset the savings you would have made through foreclosure. To determine the amount of interest and EMIs you would have paid if you had not foreclosed, you can use a gold loan calculator.

    Manipal Fintech Gold Loan – Making Gold Loans Easy Around the Country

    Manipal Fintech – India’s largest gold loan aggregator platform is well known for its one-stop solution for loans against gold. Without a top-notch tech platform and physical presence around the county, we feel proud to serve our customers on priority. While having multiple options for one need, we also cater doorstep gold loan services.

    Keeping our customer-first approach we always prioritise low interest rates, minimal documentation, and quick approval for every loan against gold. Beyond these basic benefits, Manipal Fintech also offers flexible and different ways to repay a gold loan. 

    Beyond this, If you already have a loan against gold items with another bank or NBFC can easily transfer your gold loan to Manipal Fintech . Transferring your loan to us can help you access different benefits and flexible repayment plans.

    When you have multiple choices to pay back the loan, it is easy to handle your financial situation. 

    Gold Loan Repayment Options by Manipal Fintech:

    Manipal Fintech stands out by offering a range of flexible repayment options to provide diverse borrower needs. You can select the best suitable plan to make your gold loan repayment easy & hassle-free. Here are three key repayment methods of Manipal Fintech:

    SahiBandhu Gold Loan Repayment plans

    1. SahiMax:

      SahiMax is one of the flexible gold loan repayment options by Manipal Fintech in which:

      • You are required to pay only monthly interest.
      • You have to pay the principal amount at the time of closure.

      SahiMax – Get a loan and pay interest in monthly EMIs.

    2. SahiDelight:

      SahiDelight gold loan plan by Manipal Fintech is a bullet repayment plan,  in which:

      • You have to pay off the loan in a single go.
      • Pay the interest and principal amount at the time of loan closure.

      SahiDelight – Get the loan now and pay later!

    3. SahiFlexi:

      Our SahiFlexi is an overdraft facility against your gold items. Which has the following features:

      • You can set up an overdraft limit to withdraw funds as per your needs.
      • Pay interest for the tenure of the overdraft amount you use.
      • You have to pay the final loan amount at the loan closure.

      SahiFlexi – Just pay what you use!

    Importance of flexible repayment options for a gold loan-

    Whether you take a gold loan for emergency or financial needs, it is advised that you carefully explore the repayment terms. When it comes to repaying a gold loan, it may seem like an easy option with various benefits and options available. However, it is important to remember that a gold loan must be repaid within a certain period as agreed upon when taking out the loan. Therefore, it is crucial to carefully consider and choose the right repayment option based on your financial stability. Opting for the repayment plan that suits your financial situation will benefit you in every way possible. 

    Conclusion:

    Gold loan repayment is a crucial aspect of the borrowing process, and understanding the available options is essential for a borrower’s financial planning. Manipal Fintech’s commitment to flexibility and transparency makes it a standout choice in the gold loan market. Whether you opt for SahiFlexi, SahiDelight, or SahiMax, the goal is to provide borrowers with tailored solutions that align with their unique financial circumstances.

    If you own gold assets and are considering a loan, choosing doorstep services can provide you with a seamless and efficient borrowing experience.

    Apply for a gold loan 24/7 on www.manipalfintech.com, or call at 18003098440