EMI Bounce: Gold loan borrowers should be careful, if you do not pay this much EMI then the bank will auction the gold, know the rules..

EMI Bounce: Gold loan borrowers should be careful, if you do not pay this much EMI then the bank will auction the gold, know the rules.. India-employmentnews | 30/06/2025 17:15:02

EMI Bounce: Since the Corona epidemic, the number of people taking gold loans has increased rapidly. Being a secured loan, banks make it easily available. Also, its interest rates are lower than personal loans, which has led to a huge increase in its demand.

Now the question arises if you take a gold loan and for some reason, you are unable to pay its EMI. In such a situation, after not paying how many EMIs, your gold can be auctioned. Is there any option to save gold in case of not paying EMI? Let us know the answers to all these questions in the news below -

Risk of auction after not paying how many EMIs?

Usually, if you do not pay the EMI of the gold loan for 90 days, then your account becomes NPA (Non-Performing Asset). After this, the bank or NBFC gives you a notice of 15-30 days. If you are unable to make the payment even during this period, then the bank starts the process of auctioning your pledged gold.

Let us tell you that by defaulting on a gold loan, you not only lose your gold but also limit your options to take a loan in the future. Your credit score gets affected by defaulting on the loan and later the bank refuses to give the loan.

Can gold be saved after default?

If you are unable to pay the EMI of the gold loan, then contact the bank immediately to save your gold from being auctioned. Talk to them about loan restructuring. Explain your problem to the bank in detail (due to which crisis you are unable to pay the EMI). They can understand your situation and give you some options so that you can save your gold from being auctioned.

Banks can give you the option of loan restructuring. In this way, by taking a moratorium, you can save your gold from being auctioned. Apart from this, you can save your gold from auction by paying the partial dues. To prevent EMI default on gold loan, you can consider loan transfer to another bank.

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