What is the Gold Loan EMI Calculator?
Paisabazaar brings forth the easy to use gold loan EMI calculator for individuals who wish to borrow money from a lender, using their self-owned gold as collateral. Since Gold prices are rising, applicants get a good value on their gold ornaments, as value of the jewellery directly affects the amount of loan to be approved.
The online calculator featured on Paisabazaar can further help you find out how much EMI you would need to pay for the borrowed loan amount. With the use of this EMI calculator one can try different interest rates and tenure permutations and combinations offered by different banks to grab the best available option.
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About Gold Loan
Gold loan is a secured loan, as the loan is provided by the banks against gold collateral. Banks provide borrowers with this loan by keeping gold jewellery and coins, which is returned back to the loan borrower upon repayment of the loan amount that is due. A loan secured with gold ornaments is offered for short to medium term duration and is generally processed within minutes without the need of tedious paper work. When you apply for gold loan from Paisabazaar, you have the option of leveraging the easy to use gold loan EMI calculator to calculate your monthly payouts in lieu of the loan.
Why is Gold Loan preferred?
To meet the immediate financial requirements, gold loan is a preferred choice of individuals for several reasons. Some of those reasons include:
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Gold loans interest is low as compared to other available options such as personal loan
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Gold loan tenure is very flexible and its tenure varies from a few days to 5 years.
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Many banks and NBFCs do not levy pre-payment charges on gold loans.
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To get this loan, only minimal documentation is required.
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Fast disbursement of the loan is another much loved feature of gold loan.
Highlights of Gold Loan
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Eligibility: To apply for this loan with major banks in India, an individual must own gold and should be above 18 years of age. These are the two key qualifying criteria that make an applicant eligible to get a gold loan.
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Interest Rate: Most banks and NBFCs in India offer interest rate at a very low rate, which is usually 2-3% higher than the base rate. Interested borrowers can use gold rate interest calculator to find out the latest interest rates offered by the leading banks in India. Gold loan EMI calculator makes it easy to choose the most suitable Gold loan scheme offered by various banks. This is because you can use the tool to calculate the EMI for various gold loan interest rates.
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To get your loan sanctioned, an applicant needs to provide basic KYC documents, which include:
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Two recent passport size photographs
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Identity proof documents
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Passport
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Ration card
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Driving license
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Address proof documents
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Telephone bill
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Electricity bill
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Other utility bill
How does Paisabazaar’s Gold Loan EMI Calculator work?
To use Gold Loan EMI Calculator at Paisabazaar, you would need to provide a few key details:
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The interest rate offered by leading banks to avail the Gold Loan
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Loan amount of the subscribed/required Gold loan principal
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The intended duration of the loan
Upon submitting these three details, the EMI calculator would instantly calculate the monthly instalments (taking into account the ongoing gold prices) to be paid by the borrower. Similar information can be used in other emi calculators as well such as home loan emi calculator, personal loan emi calculator, car loan emi calculator, etc.
Why should you use the EMI Calculator tool by Paisabazaar?
To calculate Gold Loan Equated Monthly Installments (EMIs), the calculator can assist you in several ways:
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It saves you from hours of tedious and fault prone calculations.
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It incorporates the latest gold prices into the calculation.
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It allows you to try out different options to find the Gold loan that is suitable for your requirement.
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By knowing the loan EMI payable, you can adjust your monthly budget so that you can make timely payments of your gold loan.
FAQs
Q. Who is eligible for a gold loan?
Ans. Any Indian who is aged between 18 and 70 years and owns gold jewellery and coins (gold bars and gold coins in excess of 50 grams each are currently not accepted as collateral for a gold loan) can apply for a gold loan with minimum documentation.
Q. What is the tenure for a gold loan?
Ans. The tenure of a gold loan can range from a few days to a few months. In rare cases a gold loan may feature tenure of a few years, however, this would be at the discretion of the bank and the actual loan amount disbursed.
Q. What happens to the gold as collateral?
Ans. Once you put up the loan as collateral for a gold loan, the gold ornaments or coins are held by the bank or NBFC (non-banking financial company) in its secure vault till the loan amount with interest is repaid in full.
Q. Why apply for a gold loan through Paisabazaar?
Ans. When you opt for a gold loan through Paisabazaar, you can easily check the interest rates, processing fees, foreclosure/pre-payment charges on the gold loan offers provided by leading banks and NBFCs operating in India. This information is available free of charge to you and helps you zero in on gold loan offers that are most suitable to your situation.
Q. How to use the gold loan EMI calculator?
Ans. The easy to use gold loan EMI calculator uses key gold loan data such as loan principal, tenure and applicable interest rate to provide you with an approximation of your equated monthly installments for a specific loan. This facility is provided to you free of charge and for unlimited number of times for your benefit.
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