Stories
Missed a Gold Loan EMI? Know When Your Pledged Jewelry Will Be Auctioned
- •Missing a single gold loan EMI does not immediately result in your pledged jewelry being auctioned by the lender.
- •If an EMI is delayed by 1 to 30 days, banks may send reminders via phone calls or SMS and levy late payment penalties.
- •Accounts overdue for 90 days or more are classified as Non-Performing Assets, allowing lenders to initiate recovery processes.
- •Banks cannot auction your jewelry without serving a formal written notice and following proper regulatory guidelines.
- •If gold is auctioned for an amount higher than your outstanding loan, the surplus money must be returned to you by the lender.
Key Questions Answered
Missing a single installment does not immediately result in your pledged jewelry being auctioned. Lenders typically send payment reminders via phone calls, SMS, or mobile apps, and may levy late charges or penalties depending on your loan agreement.
If your EMI payment is overdue for 90 days or more, your loan account is classified as a 'Non-Performing Asset' (NPA) under applicable rules. Once classified as an NPA, the lender can initiate the recovery process, though the actual auction requires following separate mandatory notification guidelines.
If your pledged gold is auctioned for an amount higher than your outstanding loan, interest, and applicable charges, the lender is obligated by rules to return the surplus money to you rather than keeping it.
