What Happens to Your Gold If You Miss EMIs? – Myths vs Reality
Gold loans are one of the most popular and quick financing solutions in India. Many borrowers, however, worry about what will happen if they miss an EMI. There’s a lot of misinformation around gold safety, auctions, and bank actions. In this blog, Vizzve Finance breaks down the facts from myths so you know exactly what to expect.
Myth 1: You Lose Your Gold Immediately After Missing an EMI
Reality: Financial institutions do not confiscate your gold right after a missed EMI. Lenders usually provide a grace period and send reminders before taking any action.
Myth 2: Your Gold Will Be Auctioned Without Notice
Reality: By law, lenders must give you a formal notice before any auction. Typically, you will get 15–30 days to clear your dues and reclaim your gold.
What Actually Happens When You Miss EMIs?
Grace Period: Most lenders, including Vizzve Finance, allow a grace period of a few days to weeks.
Late Payment Charges: Interest and penalty fees are added to your overdue amount.
Reminder Calls/Letters: The lender will contact you via calls, messages, and letters.
Final Notice: If dues remain unpaid, you’ll receive an official auction notice.
Auction: Only after the notice period expires without payment will the lender auction your gold.
How to Avoid Losing Your Gold
Communicate Early: Inform your lender if you’re facing repayment issues.
Opt for Loan Restructuring: Many lenders offer flexible repayment options.
Pay Partial Amounts: Even small payments can prevent auction action.
Renew Your Loan: Extending the loan tenure can help manage dues better.
Why Choose Vizzve Finance?
At Vizzve Finance, customer trust and gold safety are top priorities. We ensure borrowers get ample time, clear communication, and fair policies before any gold is released for auction.
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Frequently Asked Questions (FAQs)
Q1: Will my gold be auctioned if I miss one EMI?
A: No. Lenders usually allow a grace period and send multiple reminders before auctioning gold.
Q2: How much time do I get to clear dues before auction?
A: Typically 15–30 days after receiving the official auction notice.
Q3: Can I get my gold back after the auction starts?
A: Once the auction process begins, reclaiming gold may not be possible. Clearing dues beforehand is crucial.
Q4: Can I negotiate repayment terms if I can’t pay on time?
A: Yes, most lenders, including Vizzve Finance, allow restructuring or renewal to help customers avoid losing their gold.
Q5: Will my credit score be affected if I miss EMIs?
A: Yes, delayed payments can lower your credit score, impacting future loan approvals.
Published on : August 9th
Published by : selvi
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