Top Tips for Managing Gold Loans in 2025
Gold loans are a quick fix, but managing them well can save you money and stress. Here are 10 expert tips to close your loan smarter in 2025, tailored to India’s ₹89,000/10g gold market.
1. Calculate Early
Use our calculator to know your closure amount upfront. A ₹1,00,000 loan at 10% for 180 days costs ₹4,931; cut it to 90 days, and it’s ₹2,465—saving ₹2,466.
2. Compare Lenders
Banks (9-11%) beat NBFCs (12-16%) on rates, but NBFCs are faster. A 1% difference on ₹50,000 over a year saves ₹500. Shop around!
3. Pay Interest Weekly
Some lenders allow weekly interest payments, reducing your principal faster. On a ₹50,000 loan at 12%, paying ₹115 weekly vs. ₹6,000 yearly cuts costs.
4. Avoid Over-Borrowing
Borrow only what you need—75% LTV max. Excess cash at 15% interest inflates repayment unnecessarily.
5. Check Gold Valuation
Lenders vary on purity checks. Get your gold appraised independently to ensure fair LTV—₹65,000/10g in 2025 means every gram counts.
6. Close Before Rate Hikes
If RBI raises repo rates (6.5% now), loan rates could hit 16%. Close early if signals point up—check our blog for updates.
7. Negotiate Fees
Processing fees (0.5-2%) add up. Ask for waivers, especially with banks—they’re often flexible.
8. Track Gold Prices
At ₹89,000/10g, rising prices boost your collateral. If it spikes, renegotiate LTV or close to cash in.
9. Read Fine Print
Hidden penalties—like 2% for early closure—can sting. Review terms to avoid surprises.
10. Plan Repayments
Set a repayment schedule. A ₹1,00,000 loan at 12% needs ₹1,000 monthly interest—budget it to avoid default.