Big problems can come if you do not repay the gold loan, know
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Gold loan is a secured loan. Where you take a loan by keeping gold, jewelery or any item. Gold loan is considered more suitable as compared to personal loan as its interest rates are much lower. You can take a gold loan at an interest rate of 11-12 percent per annum. Whereas personal loans are taken at an interest rate of 14-22 percent. Farmers are also given a lot of preference in gold loan and farmers get it at an interest rate of 8 percent. The special thing is that even if your CIBIL score is low, you can easily take a gold loan. It is not necessary for you to provide your income certificate for this loan. But do you know what can happen if you are not able to repay the gold loan. Today we will tell you what can happen if you are not able to repay the gold loan.
Penalty Fee
If the customer pays the loan late by his stipulated time limit, the more he will be charged the penal rate of interest on the outstanding amount.
reminder letter, message, call
If you are late in repaying the gold loan amount or in case of overdue, the lender can alert you about it by sending you a reminder letter, message or call. After the reminder by the company, the customer can immediately go to the branch of the company and pay the outstanding amount of the loan.
auction
If the gold loan is not repaid within the given time frame, the lending company has the right to recover the loan by selling the gold through public auction at the risk and cost of the customer. However, it is mandatory for the company to inform the customer two weeks before the auction of gold.
If the price of gold auctioned by the company is more than the loan, then the company will return the remaining amount to the customer within 30 days, and if after the auction the amount is less than the loan, then the company can take legal action to recover the loan . They have the right to do this.
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