What is a Gold Loan?
A gold loan is a secured loan offered by gold finance companies against pledged gold articles. Depending on their rules and regulations, most gold valuables can be pledged against a loan with lenders. The pledged gold can be in the form of ornaments, coins or bars.
- Most lenders accept gold valuables with a purity of 18-24 karats as collateral against a loan.
- The loan to value (LTV) ratio for a gold loan is a certain percentage of the current market value of the pledged gold, generally up to 75%.
- The higher the fineness of gold, the higher the LTV and loan amount. Gold coins can offer you a greater loan amount as they are finer in purity. Gold bars are not accepted as collateral assets by every gold finance company.
The primary factors that affect gold loan EMIs include:
- Type of the gold loan scheme you choose.
- The gold purity and evaluation.
- The loan amount you want.
- The loan repayment term you select.
- The applicable gold loan interest rate.
Considering these factors, you can use the user-friendly gold loan interest calculator and estimate your loan EMI amount. A Gold Loan Calculator helps you know what you will be obliged to pay for the EMI of your gold loan even before applying for it.
Elaboration on Gold Loan Calculator
A gold loan calculator is a ready to use tool available online for free. It is designed to assist loan seekers in determining their loan eligibility and EMI beforehand to meet their urgent financial needs quickly.
- It helps borrowers opt for easy-to-manage EMI against the most suitable gold loan scheme.
- It helps loan seekers plan their finances to avoid the burden of hefty EMIs.
- You can find a suitable gold loan scheme that suits your financial needs best.
- The calculations are based on the current gold market prices to give you a correct idea about your eligibility for a loan amount.
How to use a Gold Loan Calculator?
- Step 1: Locate the gold loan EMI calculator/gold loan calculator on the official website of the lending institution.
- Step 2: Enter the following information:
- The required loan amount
- Type and weight of Gold to be pledged
- Tentative loan repayment tenure
- Step 3: The gold loan calculator will estimate the per gram gold value you want to pledge based on current gold rates. Here you will get your EMI value, depending on your entered variables and values.
You can use a gold loan calculator multiple times. Adjust the inputs to get an easy to pay EMI value. You can keep replicating the process until you get the desired and comfortable EMI value against a gold loan scheme of the lender.
This way, you can get results within a few clicks using a gold loan calculator. You can complete the easy gold loan application process quickly by determining the suitable EMI option with a gold loan calculator. Avail of a gold loan at low as 6.90% to meet your urgent financial requirements. You can get the loan disbursal with minimum documentation and flexible repayment opportunities.