Gold is an essential part of almost all Indian families, big or small. Taking loan against gold has been an established practice even before formal banking was established. Until today, it is among the best options for taking a loan against collateral. It is easy to get approval and comes in handy during emergencies.
A lot of banks and non-banking financial companies offer gold loans at lower rate of interest compared to a personal loan. Other advantages include flexible tenure and minimal document requirements. However, you must always use a gold loan EMI calculator before applying for one.
How to Use a Gold Loan Calculator
• Since gold prices fluctuate, the value of your jewellery will determine the value of the loan you can get
• To get your jewellery back, you must be able to repay the principal amount as well as the interest in the form of Equated Monthly Instalments (EMIs)
• With data such as loan amount, the rate of interest and tenure, you can get an accurate idea of the EMI you will have to pay each month
• Instead of the amount, some calculators allow you to input the details of each of the gold jewellery you wish to use as collateral. You have to enter details such as the weight of the jewellery and the purity of the gold.
Why Should You Use a Gold Loan Calculator?
Here are some of the reasons why you should use a gold loan calculator before taking a loan against gold-
• It makes tedious calculations fast and free of human error
• With the calculator, you can play around with various combinations of the three (the principal, the rate of interest, and the tenure) until you find the EMI you can afford to pay without taking additional financial burden or risking defaults
• You can compare the EMI you have to pay for different lenders and choose the lender accordingly
• The gold loan EMI calculator uses the prevalent valuation of gold for the calculations
• You get an idea of the Loan to Value ratio (LTV ratio). The higher this ratio is, the more risk you are taking with your gold.
• The calculator gives you a break-up of the repayment structure of the loan
• By knowing the EMI before you take the loan, you can make necessary adjustments to your budget to accommodate the loan
Since the gold loan is a secured loan, it does not usually require income proofs or CIBIL score. However, you must be careful with the collateral otherwise, the chances of being duped are real. Do your research on the lender and check LTV ratio and EMI with the gold loan calculator. Making an informed decision helps you easily repay the loan by budgeting accordingly. So never skip the crucial step that can jeopardise your treasured gold jewellery.
A lot of banks and non-banking financial companies offer gold loans at lower rate of interest compared to a personal loan. Other advantages include flexible tenure and minimal document requirements. However, you must always use a gold loan EMI calculator before applying for one.
How to Use a Gold Loan Calculator
• Since gold prices fluctuate, the value of your jewellery will determine the value of the loan you can get
• To get your jewellery back, you must be able to repay the principal amount as well as the interest in the form of Equated Monthly Instalments (EMIs)
• With data such as loan amount, the rate of interest and tenure, you can get an accurate idea of the EMI you will have to pay each month
• Instead of the amount, some calculators allow you to input the details of each of the gold jewellery you wish to use as collateral. You have to enter details such as the weight of the jewellery and the purity of the gold.
Why Should You Use a Gold Loan Calculator?
Here are some of the reasons why you should use a gold loan calculator before taking a loan against gold-
• It makes tedious calculations fast and free of human error
• With the calculator, you can play around with various combinations of the three (the principal, the rate of interest, and the tenure) until you find the EMI you can afford to pay without taking additional financial burden or risking defaults
• You can compare the EMI you have to pay for different lenders and choose the lender accordingly
• The gold loan EMI calculator uses the prevalent valuation of gold for the calculations
• You get an idea of the Loan to Value ratio (LTV ratio). The higher this ratio is, the more risk you are taking with your gold.
• The calculator gives you a break-up of the repayment structure of the loan
• By knowing the EMI before you take the loan, you can make necessary adjustments to your budget to accommodate the loan
Since the gold loan is a secured loan, it does not usually require income proofs or CIBIL score. However, you must be careful with the collateral otherwise, the chances of being duped are real. Do your research on the lender and check LTV ratio and EMI with the gold loan calculator. Making an informed decision helps you easily repay the loan by budgeting accordingly. So never skip the crucial step that can jeopardise your treasured gold jewellery.
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