Calculate Your Gold Loan EMI Through Quick And Simple Steps

Gold loans are provided by banks and non-bank financial institutions (NBFCs) as a form of collateral or security against the applicant’s gold, which is held as collateral or security by the lender in turn. Gold jewellery, coins, and ornaments belonging to the borrower are used as collateral or security for gold loans. The items are returned to the lender upon the timely and full repayment of the loan in terms of gold loan EMI. A gold-encrusted loan is often provided for a length of time ranging from a few weeks to many months.

Gold loans and EMI assist you to calculate the timely amount with the particular rate of interest. The Interest rate on the total loan amount plays a key role in the amount of EMI. Calculating it needs the total loan amount with the interest rate and the tenor of the loan. The EMI type also has active participation which may add the makeable variation in the amount of EMI. The principal amount of the loan plays a foundation role in the calculation of EMI. The interest rates may vary in each bank as per the eligibility of the applicant and quality of gold.

To get an idea of how much you’ll owe on a gold loan, you may use an online calculator to figure out how much you’ll have to pay each month. The lender (bank or NBFC) will hold the borrower’s gold or gold jewellery as collateral or security until the loan is repaid in full. 

A gold loan EMI calculator may assist an applicant in determining the approximate monthly payment required to return the borrowed amount. Applicants may also check out the gold loan rate per gram and repayment terms provided by top financial institutions using the Gold Loan EMI calculator.

Steps to Calculate Your Gold Loan EMI 

Using a gold loan calculator, you’ll be able to figure out how much you’ll have to pay back throughout the loan by filling out some basic information. Try an EMI calculator to figure out your Gold Loan’s interest rate, even if you don’t understand the process.

Open the Gold Loan Interest Rate Calculator

Select your favourite lender from the drop-down menu and use the link to the Gold Loan interest rate calculator. This will launch an online calculator that will need you to provide a few information before it can offer you a result. You must submit the most fundamental elements are the interest rate, loan amount, and loan duration.

Choose The Interest Rate

Even though the lowest interest rate might be a decisive factor, it is best to consider all other aspects before making a final decision. Remember that the lowest interest rate isn’t always a good deal. As a result, conduct your research and look for a lender that offers a cheaper interest rate and other important factors. Calculate your Gold Loan interest rate by copying and pasting it into the relevant field.

Choose The Loan Amount

Use this calculator to get an idea of how much interest you may expect to pay on an instant gold loan by entering your desired loan amount. The amount of money you get back depends on the weight and kind of gold you put up as collateral, so be prepared to be flexible with the loan amount.

Enter The Gold Loan Tenor

The third step is to determine the length of time your Gold Loan. This is the time frame in which you intend to repay the lender’s money and get your gold back in exchange. While some lenders provide loans for a set amount of time, others allow you to pick the number of months or years you want to pay back your gold loan. After entering the tenor in the appropriate area, you are finished.

Calculate The Loan EMI

To check your today’s gold loan interest rate, all you need to do is click on the “Calculate” button. 

Gold Loan EMI Calculation Formula

The formula for computing the interest on a gold loan is:

P x R x (1+R)N / [(1+R)N-1]

Where,

• The letter P stands for Principal Amount Borrowed
• The letter R stands for the imposed rate of interest
• The letter N stands for “number” or “tenor” in months

For example: If Rs. 1,00,000 is the amount borrowed (P), 12% is the rate of interest imposed (R), and the loan term is 60 months, the EMI that would be due during that period will be as follows:

1, 00,000 x 0.01 x (1+0.01)60 / [(1+0.01)60-1] = Rs.2, 224 (per month)

Monthly, the rate of interest (R) is computed as (Annual Rate of Interest/12/100); in this example, it is (12/12/100 = 0.01).

What Are Some of the Factors That Impact Gold Loan Interest Rates?

Interest rates levied on gold loans are influenced by several key variables, including:

• Price of gold
• Benchmarking methods applied by lenders
• Credit score
• Loan amount
• Repayment term

If you are interested in obtaining a Gold Loan but are unsure how much Gold Loan per gram you may expect to get, you can consult a Gold Loan EMI calculator. This quick and easy tool will provide you with the precise amount to the last point and will assist you in making a choice.

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