A recent Economic Times report highlights how choosing the right gold loan repayment method can significantly reduce the overall cost for borrowers. While gold loans are widely used for their quick disbursal and lower interest rates, repayment structure plays a major role in how much interest a customer finally pays.
The article explains three common gold loan repayment options—regular EMI, bullet repayment, and overdraft-style repayment. EMI-based repayment suits borrowers with steady monthly income, as both principal and interest are paid in fixed instalments. Bullet repayment allows customers to pay interest periodically or at maturity, with the principal settled at the end, making it useful for short-term needs. The overdraft method offers higher flexibility, as interest is charged only on the amount utilised, helping disciplined borrowers lower interest outgo.
The report advises borrowers to assess cash flow, income stability, and loan tenure before choosing a repayment plan. Paying interest on time and reducing principal early can also bring down the total cost.
For institutions like Indel Money, transparent repayment options and customer awareness are essential to responsible lending. The article reinforces that informed repayment choices help borrowers manage gold loans better while protecting their pledged assets.
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Gold loans are emerging as one of India's fastest-growing retail credit segments, driven by rising gold prices and increased digital adoption. In a recent thought leadership article, Indel Money Executive Director and CEO Umesh Mohanan highlighted why gold loans continue to stand out as one of India’s most resilient credit segments during periods of economic uncertainty. He noted that gold-backed lending has emerged as a reliable source of liquidity.
According to industry data cited in the article, outstanding gold loans in India have crossed ₹4 lakh crore, reflecting strong growth in demand. Gold loans have become one of the country’s fastest-growing retail credit products, supported by rising gold prices, digital adoption, and changing borrower preferences.
Mohanan explained that higher gold prices increase the value of collateral, enabling borrowers to access greater funding and lenders to offer top-up loans within RBI-prescribed loan-to-value norms. Digital transformation has further improved customer experience, making gold loans faster, more transparent, and accessible across urban and rural markets.
He also pointed out that tighter regulations on unsecured lending have encouraged more borrowers to opt for secured credit products such as gold loans. As a regulated NBFC, Indel Money remains focused on responsible lending, customer-centric innovation, and expanding formal credit access, reinforcing the role of gold loans in strengthening India’s financial resilience.
In a recent interaction with Outlook India, Indel Money Executive Director and CEO Umesh Mohanan highlighted the growing importance of gold as a reliable collateral driving India’s next phase of inclusive credit growth. He explained that gold-backed lending is becoming a key financial tool, especially for individuals and small businesses that face challenges in accessing traditional credit systems.
Gold loans are gaining relevance due to their speed, simplicity, and lower dependency on credit history. Mohanan noted that in India, where households hold large quantities of gold, a significant portion remains underutilised. By bringing this idle asset into the formal financial system, lenders can improve liquidity and expand access to credit in both urban and rural markets.
He emphasised that gold loans are particularly beneficial for MSMEs and individuals in smaller towns, where access to formal banking services is limited. The secured nature of gold lending reduces risk for lenders while enabling faster disbursal for borrowers. This makes gold loans an efficient solution during economic uncertainty and tight credit conditions.
As a regulated NBFC, Indel Money is also playing a key role in moving borrowers away from informal lending practices towards a more transparent and customer-first approach.
With gold evolving from a traditional asset into a strategic financial tool, Indel Money stands at the forefront of enabling inclusive and sustainable economic progress.
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