Bullet Repayment vs Monthly EMI in Gold Loans: Which Scheme Saves Money?
Gold loans offer unique repayment flexibility tailored to short-term liquidity needs.
What is Bullet Repayment?
In a Bullet Repayment scheme, you pay nothing during the loan tenure. The entire principal and accrued compound interest are paid in a single lump sum at the end of the loan period (typically 6 to 12 months).
What is Monthly Interest Servicing?
You service only the interest amount every month, and repay the principal at the end. This prevents compounding interest and significantly lowers the final payoff check.