New Delhi, June 24 -- A gold loan is one of the simplest secured loan alternatives in India that allows borrowers to use their gold coins or jewellery as collateral to meet an urgent expense. However, if the debt is not serviced it may harm you greatly. Let's find out in detail what happens if you do not repay a gold loan on time and why it matters.

When a borrower does not clear their loan as per the scheduled calendar i.e. fails to pay their EMIs, fails to pay the interest, or fails to pay the total principal by the end of the term, it is known as a gold loan default. Gold is a security for the gold loan, but non-payment can lead to adverse financial and legal impacts.

If after a grace period, usually 30 to 90 days of default, lenders...