Loans Against Bullion and Krugerrands
Can I settle a bullion-backed loan early?
The short answer
Consumers generally have the right under the National Credit Act to settle a credit agreement early, with or without advance notice. The settlement amount usually includes the unpaid balance and the interest, fees and charges due up to the settlement date. Once it has been paid, the bullion held as security is released under the terms of the agreement. You can settle early at any time without penalty. Ask Knox for a settlement figure, which is valid for 24 hours; you can also make extra payments at any time without notice.
What early settlement means
Early settlement means paying off the full amount owed before the end of the agreed term. It ends the agreement and, for a secured loan, leads to the release of the security. The National Credit Act gives consumers the right to settle at any time. Knox Precious Metals (Pty) Ltd is a registered credit provider, NCR registration number NCRCP21466.How the settlement amount is generally worked out
The settlement amount generally consists of the unpaid principal plus the interest, fees and charges owed up to the settlement date. Because interest accrues over time, settling earlier usually means paying less interest overall. For certain larger agreements, the Act allows a limited early-termination charge, and any such charge should be explained in the agreement. Ask for a written settlement quote that states the amount and the date or period for which it is valid.What depends on Knox policy
How you request a settlement figure, how payment is made and how the bullion is released are set out in Knox's procedures and the credit agreement. Repayments are collected by debit order on the dates in your repayment schedule. You can pay more than the instalment, or settle in full, at any time, and you receive a monthly statement by email. Ask whether you will receive the same coins or bars or equivalent ones. Yes. Pledged items are stored separately from other goods and the same item is returned to you, in the condition in which it was held, once the settlement amount is paid. You must present your barcode receipt, proof of identity and your signature.What to do next
- Ask Knox for a written settlement quote for the date you intend to pay.
- Pay the amount using the method in the agreement and keep proof of payment.
- Arrange to collect the bullion, bringing your identity documents.
- Check the bullion against your intake record before signing for it.
- Keep the settlement confirmation with your records.
How Knox handles this
Knox provides a settlement figure on request, showing the amount needed to settle the loan on a given date. Once payment has been received and confirmed, Knox releases the bullion held as security to you or your authorised representative after confirming identity, in line with the credit agreement. The settlement terms, together with the interest, fees, term and repayment conditions, are set out before you decide whether to proceed with the loan.
Ready for the next step?
Speak to the Knox team about your situation. They will confirm current pricing, availability and requirements before you decide.
