Gold Loan Maximum Tenure - What is The Maximum Tenure for Gold Loan?

Throughout India, gold is considered as an essential investment and loan instrument. Banks provide Gold Loans by accepting gold as collateral. But for how long can take this loan? Here’s all you need to know about maximum Gold Loan tenures.

What is the Maximum Tenure on a Gold Loan?

Gold Loans come with relatively shorter repayment tenures as compared to most other loans. Typically Gold Loan maximum tenure for repayment is 24 months in case of long-term loans repaid in EMIs, and six months in case of short-term loans repaid in a lump sum.

Long term Gold Loan with EMI payments

If you opt for monthly instalments, you can repay the loan in a maximum of 24 payments. This means the maximum Gold Loan tenure you can get is 24 months. Even if you opt for shorter loan repayment tenures, for instance, 12 months, you can repay the loan before your preferred tenure ends. Banks do not levy any prepayment charges to close the loan before your chosen tenure, so long as you pay a minimum of three instalments.

Short term Gold Loan with Lump sum payment

If you opt for a short Gold Loan tenure, then you would be eligible for maximum repayment tenure of 6 months at a fixed interest rate. You can repay your entire loan in a single lump sum when the loan tenure ends at six months. Here too, the prepayment penalty is not applicable if you choose to prepay the loan after six months.

Apply for Gold Loan today and fulfil your financial needs on your own like business needs, unexpected expenses, or bill payments.

The information provided in this article is generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances.