08 Mar 2026 | 5 Mins Read
The lender can repossess and sell the gold collateral to recover the loan
Flipitmoney
A borrower typically receives reminders and notices after missing an interest payment, with formal notices stating overdue repayment and potential sale of pledged jewellery if payments are not made. If unpaid, the lender auctions the gold to recover the loan amount and interest, with the borrower potentially liable to pay any remaining balance. This can also appear on their credit history.