Many borrowers manage to pay their monthly interest on time but face difficulty when the full loan amount becomes due. Since gold loans are short-term, the principal repayment can become a huge financial burden. If they fail to arrange funds in time, they risk losing their pledged gold, which often holds sentimental or financial value for their family.

Some borrowers can initially afford to pay the monthly interest for the first few months. However, over time, their financial situation worsens, making it hard to even pay the interest. As unpaid interest accumulates, their debt grows larger, putting them in a tough spot. Eventually, they may have no choice but to surrender their gold or face a forced auction by the lender.

Many borrowers struggle to make their first interest payment due to unexpected financial troubles. Since gold loans are often taken in urgent situations, some borrowers may not have a stable income to support even the initial repayment schedule. As a result, they quickly fall into debt, making it harder to recover and increasing the risk of losing their pledged gold.

Some borrowers take a gold loan but later realize that paying continuous interest is not financially viable. Upon seeing an alternative solution, such as Golden Gadre’s services, they decide to sell their pledged gold instead of paying accumulating interest. This allows them to settle their financial obligations and use the remaining funds for other essential expenses.

Certain borrowers, either due to financial stress or negligence, do not make any payments towards their gold loan. Over time, unpaid interest keeps adding up, significantly increasing their total debt. When they finally try to reclaim their gold, they realize the amount owed has grown beyond their ability to repay. This results in a high chance of gold auction or legal complications.

As gold prices rise, borrowers see an opportunity to maximize their loan value. By closing their current loan and taking a new loan on the same weight of gold, they can secure a higher loan amount. This extra money can be used for urgent financial needs, such as business expansion, medical expenses, or education.

Some borrowers realize they are paying a higher interest rate than necessary. Since different banks and NBFCs offer varying interest rates, they wish to transfer their gold loan to a lender with better terms. By reducing their interest rate, they can lower their monthly financial burden and save a significant amount over time.

Many people, especially those in rural areas, pledge their gold with local jewellers or pawn brokers who charge extremely high interest rates. Since these lenders operate without proper regulation, borrowers often end up paying far more than they expected. They later seek to transfer their gold loan to a bank or a trusted financial institution to reduce their interest burden and bring stability to their finances.

Some borrowers prefer not to continue their gold loan and instead wish to sell part of their pledged gold. By selling only as much gold as needed to clear their outstanding debt, they can regain possession of their remaining gold ornaments for personal or family use. This helps them settle their financial obligations while still preserving some of their valuable assets.

High-value gold loan borrowers often face severe financial stress when their repayment due date arrives. If they are unable to arrange the required funds, the bank threatens to auction their gold. However, due to personal, emotional, or social reasons, they do not want their gold to be sold publicly. They seek short-term assistance from Golden Gadre to release their pledged gold and hold onto it for a few more months, hoping for better financial circumstances.

Some borrowers realize that their outstanding gold loan amount is more than what they can recover from selling the gold. If they fail to repay, it negatively impacts their CIBIL credit score, affecting their future borrowing ability. To prevent this, Golden Gadre steps in to help by covering the shortfall and restructuring the loan. This gives the borrower more time to repay while avoiding long-term credit issues.

Many gold loan borrowers continue paying interest for years without making any progress toward repaying the principal amount. Over time, they realize that the total interest paid equals or even exceeds the original loan amount. Despite their efforts, they remain stuck in a financial loop, unable to reclaim their gold or find a way out of debt.

Due to increasing competition in the gold loan market, borrowers often shift their pledged gold from one lender to another to avoid paying overdue interest. However, in this process, they leave behind unpaid dues at their previous lender while also accumulating interest with the new lender. Eventually, when they realize their financial trouble, they seek a solution to clear the mess, but in most cases, the original lender suffers a loss due to unpaid interest.