How to make a gold loan prepayment?

Follow the steps given in this article to make gold loan prepayment
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How to make a gold loan prepayment?
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3 min
10-September-2024

Is prepayment allowed in a gold loan and what is the process?

Prepayment in a gold loan is indeed allowed and can help borrowers save on interest costs. Understanding the process for prepayment, whether online or offline, ensures that borrowers can effectively manage their loan repayments and potentially reduce their financial burden.

How does gold loan prepayment work?

Gold loan prepayment allows borrowers to pay off their loan amount before the end of the tenure. This can be done through a lump-sum payment or multiple partial payments. Any prepayment made directly reduces the principal amount, leading to a reduction in the overall interest payable. This method of Loan Repayment can significantly decrease the total cost of the loan. By opting for prepayment, borrowers can also free up their pledged gold assets sooner, providing financial flexibility.

Online method for gold loan prepayment

To prepay your gold loan online, follow these steps:

  1. Log in to your account: Login into your account with Bajaj Finserv using your registered mobile number.
  1. Navigate to “Account”: Once logged in, click on “Account” where you will find all your active loans under “Your relations”.
  1. Select the prepayment option: Choose your gold loan and select the prepayment option under “Make payments”.
  1. Enter prepayment amount: Input the amount you wish to prepay.
  1. Confirm and pay: Review the details and confirm the transaction. Complete the payment using the available online payment methods.
  1. Receive confirmation: After the transaction is successful, you will receive a confirmation message or email regarding the prepayment.

Offline method for gold loan prepayment

Customer Support

  1. Contact customer support: Call the customer care number to request a prepayment.
  1. Provide loan details: Share your loan account number and other necessary details.
  1. Get prepayment information: The customer support executive will provide the prepayment amount and other relevant information.
  1. Make the payment: Follow the instructions given by customer support to complete the payment.

Branch visit

  1. Visit the nearest branch: Go to the branch with your loan documents and ID proof.
  1. Consult a representative: Inform the representative that you wish to prepay your gold loan.
  1. Provide loan details: Share your loan account number and other required information.
  1. Make the payment: Complete the prepayment process by paying the required amount at the branch.
  1. Receive confirmation: Collect the confirmation receipt of your prepayment from the branch.
For assistance, you can contact Customer Care.

Benefits of gold loan prepayment

Prepaying a gold loan offers several advantages:

  1. Reduction in interest costs: Any prepayment towards the loan directly reduces the principal amount, leading to considerable savings on interest.
  1. Faster loan closure: Prepayment helps in closing the loan earlier than the scheduled tenure, allowing you to retrieve your pledged gold sooner.
  1. Improved financial management: Prepaying your loan can help consolidate your debts and improve overall financial stability.
  1. Peace of mind: Reducing debt obligations ahead of time can provide peace of mind and better financial security.
By understanding the prepayment process and its benefits, borrowers can make informed decisions to optimize their loan repayment strategy.

Frequently asked questions

Is loan prepayment a good option?
Yes, loan prepayment is a good option as it helps reduce the principal amount, leading to significant savings on interest costs. It also enables faster loan closure, improves credit score, and provides financial flexibility by freeing up pledged assets sooner.

How to get gold loan details?
To get gold loan details, log in to your account on the lender’s online portal or mobile app, and navigate to the loan section. Alternatively, you can contact customer care or visit a branch to obtain detailed information about your gold loan.

How much prepayment is allowed?
The amount of prepayment allowed varies by lender and the terms of the loan agreement. Some lenders may allow full prepayment, while others might have restrictions or charges on partial prepayments. It's best to check with your lender for specific prepayment terms.

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