What you need to know
Gold loans offer more repayment choices than most loans. Pick the one that matches your cash flow; for bullet loans remember LTV includes the interest to maturity.
Options compared
| Option | How it works | Cost |
|---|---|---|
| EMI | Principal + interest monthly | Lowest total interest |
| Bullet | Everything at maturity | Highest interest; lower loan per gram |
| Interest-only | Interest monthly, principal at end | Moderate |
| Overdraft | Interest on amount drawn | Flexible; pay only for use |
EMI examples
| Loan amount | EMI @ 9.00% | EMI @ 12.00% | EMI @ 18.00% |
|---|---|---|---|
| ₹1,00,000 | ₹8,745 interest ₹4,942 | ₹8,885 interest ₹6,619 | ₹9,168 interest ₹10,016 |
| ₹3,00,000 | ₹26,235 interest ₹14,825 | ₹26,655 interest ₹19,856 | ₹27,504 interest ₹30,048 |
| ₹5,00,000 | ₹43,726 interest ₹24,709 | ₹44,424 interest ₹33,093 | ₹45,840 interest ₹50,080 |
Tenure 1 years, reducing-balance EMI.
Frequently asked questions
Can I switch repayment method later?
Usually only at renewal or by closing and re-pledging.
For information and comparison only. Loan terms, rates and rules change — confirm with the lender and read the Key Facts Statement before borrowing.