Gold loans are a type of secured loan that are offered against the self-owned gold of the applicant to be kept as a security or collateral against the lender. One may use the gold loan calculator present on the website of their chosen lending institution to gain an understanding of the interest payments they might have to make for their loan amount. Usage of such calculators can aid in proper monthly budgeting and loan planning. Gold Loan EMI (Equated Monthly Installment) is the monthly payment one would make to the financial institution to repay their loan.
Financial institutions ideally keep gold coins, bars or ornaments of the applicant as collateral and return them back to the borrower upon the repayment of the loan amount in full and in time. The loans secured through gold are generally offered for a medium to short term basis.
What is a Gold Loan EMI Calculator?
Gold Loan EMI Calculator basically is a digital tool that any loan applicant can access to calculate their EMI against the amount of goal loan they are planning to avail. A gold loan interest rate calculator will allow them to find out the approximate EMI they will have to pay in order to repay the borrowed amount. In addition, the applicants can explore multiple repayment tenure options and interest rates offered by multiple financial institutions through such an online tool.
Gold Loan EMI Calculators tend to feature multiple fields in which loan applicants need to enter certain vital information. These details typically include the loan amount, net weight of the goal articles, gold carat, loan tenure, interest rate and the payment method. By providing all such information, the applicants can find out the monthly installments payable for the loan amount sought out by them.
Benefits of Using a Goal Loan Calculator
Swift calculation: Trying to calculate EMIs manually by looking at the rates can take a lot of time and involve undue hassle. It is always better to use an online calculator instead. A gold loan interest rate calculator would deliver perfectly swift results. The loan applicants just need to fill out certain important details, and the tool will automatically calculate the EMI amount payable within minutes. The applicants would not even have to call up or visit the relevant financial institution to acquire details of the amount of EMI they likely have to pay. All the information they need can be found with just a click of the mouse.
Accurate results: Total interest payable and EMIs can undoubtedly be calculated manually. However, irrespective if a person is good in math, there will always be room for errors when making such calculations. Using an online loan calculator can easily avoid room for error instead. Each time the applicants enter the relevant values on these calculators, they are guaranteed to get accurate results.
Easy to use: Gold loan EMI calculators present on the websites of major financial institutions are quite simple and easy to use and navigate. It features very specific fields that the applicants have to fill up using the details of diverse loan components, ranging from the weight of the gold items to interest rate and tenure. The EMI payable will be displayed at once after all the needed details are filled out.
Financial planning: Online loan calculators can considerably help in financial planning. As it provides details about interest payments and EMIs beforehand, applicants can orderly plan their repayments with its help.
Gold loan eligibility usually is evaluated in terms of the loan per gram of gold or loan sum, which can be the value of gold pledged (based on the gold price), purity of gold, as well as LTV used by banks. In most cases, the gold price is calculated by using the average cost of 22-carat gold of the last thirty days and the loan-to-value granted by the financial institution. The online gold loan amount eligibility of a person shall influence their EMI, loan tenure and interest provided. Using a gold loan calculator can make matters clearer for the loan applicant and help them in selecting the ideal institution to acquire their loan amount.
