Gold Loan Interest Rates 20211515 views
- Want to know the monthly installments that you need to pay on your gold loan?
- Know everything about the Gold Loan EMI Calculator and what are the details you will need to use in this tool!
Gold Loan is one of the most popular secured loans because of its affordable interest rates provided by the lenders on this facility. Any individual can get the required loan amount by pledging his or her gold ornaments and gold coins specially minted by banks. But the most important part of any loan facility is the repayment of the loan amount. One of the most amazing features of the Gold Loan is the several repayment methods provided by the lenders. One of them is the Equated Monthly Installment (EMI) by which you pay both a part of the principal and interest amount every month.
A lot of people have this question while opting for a gold loan: What will be the monthly installments they will be paying if they opt for the EMI repayment method? Well, you can get an answer to this question using this amazing tool Gold Loan EMI Calculator. You can know the exact EMI amount that you need to pay for your Gold Loan by just submitting a few details. This tool helps you in estimating the repayment, hence allowing you to take a calculative decision. Also, due to the speedy calculation, you can save a lot of your precious time. We will be telling you everything about the Gold Loan EMI Calculator so that you can make an informed decision.
Table of Contents
- 1 Things to Know Before Using the Gold Loan EMI Calculator
- 2 How Does Gold Loan EMI Calculator Work?
- 3 What is the Gold Loan EMI Calculator Formulae?
- 4 Gold Loan EMI Calculator of Top Lenders
- 5 Features and Benefits of Gold Loan EMI Calculator
Things to Know Before Using the Gold Loan EMI Calculator
Now, you must be thinking about the details that you will need to know your EMI amount as every tool needs some inputs to provide the output amount. Well, to use the Gold Loan EMI Calculator, you will need a few basic details. These are Required Gold Loan Amount, Rate of Interest and the Tenure for your loan.
We are providing details about each of them below. Do look at them!
The first and foremost thing that you need to feed into this amazing tool is the loan amount that you will require. You must know that the gold loan amount depends on the overall value of gold and you can get a maximum of 90% of the overall value of gold. But lenders can come with a maximum cap in terms of amount. Also, the purity of your gold will play a crucial role in determining your loan amount. You can also use Gold Loan Eligibility Calculator to know the maximum eligible loan amount according to your gold ornaments.
Also, the maximum loan amount differs from one lender to another lender. So check which lender is providing you the loan according to your requirement.
Rate of Interest
Rate of Interest is the most crucial factor that will help determine your repayment amount greatly. As we told you before, the EMI amount will consist of a part of the interest amount, hence the higher the rate of interest will be, the higher will be your EMI amount. The rate of interest tends to vary from one lender to another. It is advised to choose a lender that can provide you the loan at the lowest rate of interest. This will lessen the repayment burden for you.
We are providing you gold loan interest rates of some of the top lenders below. Have a look!
|List of Banks/Lenders||Gold Loan Interest Rates (In Per Annum)|
|State Bank of India (SBI)||7.50%|
|ICICI Bank||10.00% - 19.76%|
|HDFC Bank||9.50% - 17.55%|
|Muthoot Finance||12.00% - 27.00%|
|Manappuram Finance||12.00% - 29.00%|
|Union Bank of India||7.00% - 9.60%|
|Kotak Mahindra Bank||10.50% - 17.00%|
|Federal Bank||8.50% Onwards|
|YES BANK||9.00% - 15.00%|
This is the third and last thing that you need to fill in the calculator. Tenure is the number of months that you will need to repay the loan amount. The gold loan tenure tends to change from one lender to another and you must choose tenure according to your repayment capacity, otherwise, you may miss your EMI payment. You may choose a shorter tenure if your monthly income allows you so. The minimum tenure for the loan is 12 months.
So, these are the three details that you will need to know the EMI amount. As soon as you will feed these details into the Gold Loan EMI Calculator, the tool will provide you the approximate EMI amount within a second. Also, you will get to see the interest outgo and the total amount payable for the gold loan.
How Does Gold Loan EMI Calculator Work?
Now you have known all the details that you need to use the Gold Loan EMI Calculator, it is important to know about the functioning of this tool. Like any other tool, this tool works on a simple algorithm, by which the device gives you an accurate estimation of the EMI amount. The device mainly takes three things into account – the loan amount, rate of interest and tenure – to give you the EMI, interest outgo, and the total amount payable in a flash of second. You don’t need to perform any tiring manual calculation to know your EMI amount, instead, you can use the Gold Loan EMI calculator without any trouble.
Apart from the details that we told you, this tool also provides you the amortization table with which you can know the repayment status at each year of tenure. You can have an estimate about the principal amount, interest amount and outstanding balance amount at the end of every month or year.
What is the Gold Loan EMI Calculator Formulae?
If you want to know about the formula used to calculate your EMI amount, you can look below.
E = P* r* (1+r)^n / ((1+r)^n – 1)
E = EMI (Equated Monthly Installment)
P = Principal Loan Amount
r = Monthly Interest Rate
n = Monthly Loan Tenure
If you like, you can also do the manual calculation by putting all the details into this formula.
Gold Loan EMI Calculator of Top Lenders
Now you have known quite enough about what an EMI calculator is, what details that you will need and how this tool functions, it is important to know about the EMI Calculator of some of the top lenders who provide a Gold Loan. We are providing details about some of the top Gold Loan EMI Calculators below. Have a look!
ICICI Gold Loan Calculator
Looking to opt for the ICICI Gold Loan, but worried about the EMI amount you will need to pay every month? Well, you can use the ICICI Gold Loan Calculator to get the desired result in a hassle-free manner. ICICI Bank provides a gold loan with which you can opt for the loan amount as low as INR 10,000 to as high as INR 15 lakh according to the gold value. You can opt for the loan amount for a period of 6 or 12 months at interest rates ranging from 10.00% - 19.76% per annum. ICICI Gold Loan calculator will instantly give your result.
Axis Gold Loan Calculator
If you want to opt for a Gold Loan from Axis Bank which is one of the leading private banks of India but not aware of the monthly installments that you will need to pay? We want to tell you that Axis Bank Gold Loan Calculator can be the perfect tool with which you can easily know your EMI amount. The maximum loan amount that you can take with Axis Bank Gold Loan is INR 20 lakh. The most amazing thing is that you can easily repay this amount within a maximum period of 3 years. The affordable interest rates ranging from 13.00% per annum, your EMI will be quite lower.
Kotak Gold Loan Calculator
This Gold Loan EMI Calculator from Kotak Mahindra Bank not only helps you in finding the EMI amount but also in getting the interest amount at various intervals if you want to choose other repayment methods. To know the results with this tool, you will need to feed a few basic details such as the weight of gold, the carat of gold, required loan amount, mode of repayment, rate of interest and tenure. As soon as you feed these details into the calculator, it will give you the EMI amount, total interest amount payable and the total amount payable. With Kotak Mahindra Gold Loan, you can get a maximum loan amount of INR 25 lakh.
Muthoot Gold Loan EMI Calculator
Muthoot Finance is one of the renowned gold loan lenders in India. If you are looking to opt for one of the schemes provided by this gold, you must use the Muthoot Finance Gold Loan Calculator. This amazing tool by Muthoot Finance helps you in getting an estimate about the EMI amount and also in choosing the right scheme at affordable interest rates. To use this tool, you just need to feed the required loan amount and residential state, and based on this, the tool will provide all the suitable gold loan schemes to you. You can choose the one according to your repayment capacity.
Let’s understand how a Gold Loan EMI Calculator functions through an example. Suppose an applicant is looking to opt for a Gold loan amount of INR 2 lakh against her gold ornaments. The interest rate provided by the lender is 12.50% per annum for a tenure of 3 years. The applicant wants to know the EMI amount for this loan amount. We are providing all the details that the applicant can know by using the Gold Loan EMI Calculator in the below table. Do check!
|Loan Amount||Interest Rate||Tenure||EMI Amount||Interest Amount||Total Amount|
|INR 3 lakh||12.50% per annum||1 year||INR 26,725||INR 20,698||INR 3,20,698|
|INR 3 lakh||12.50% per annum||2 year||INR 14,192||INR 40,613||INR 3,40,613|
|INR 3 lakh||12.50% per annum||3 year||INR 10,036||INR 61,299||INR 3,61,299|
EMI, Total Interest Outgo, Total Repayment (Interest + Principal)
|Year||Principal Amount||Interest Amount||Balance Amount|
|1||INR 87,853||INR 32,580||INR 2,12,146|
|2||INR 99,486||INR 20,947||INR 1,12,660|
|3||INR 1,12,763||INR 7,773||INR 0|
So, you can see clearly the break up of principal and interest amount at the end of each year of the total tenure and how the EMI amount, interest amount and total amount payable changes as you choose a different tenure.
Features and Benefits of Gold Loan EMI Calculator
A Gold Loan EMI Calculator comes with several benefits. We are mentioning some of them below at which you should have a look at!
Accurate and Efficient
The best part about this tool is that you don’t need to worry about the accuracy part. You may get an inaccurate result if you are doing it manually, but not when you’re using this tool. Also, this tool proves to be quite efficient as you can save a lot of your precious time. The calculation is quite fast and you don’t need to worry about the time.
Choice of Suitable Lender
With the calculation done for the Gold Loan EMI Calculator, you can decide if this EMI amount would be within your repayment capacity. This tool certainly helps you in comparing different options based on the loan amount, tenure and interest rates. Put values provided by the different lenders and choose the most suited one for you.
You can readjust anything whether your loan tenure, rate of interest or required loan amount if that ensures the EMI within your ability to pay on time. You can easily put different values in the place of previously used values and check if the new results are according to your choice or not.
The Gold Loan EMI Calculator doesn’t only tell you the EMI amount but with this tool, you can also know about some other details such as Interest Outgo, Total amount Payable, and Amortization table. So, there are so many useful things that you can get with the Gold Loan EMI Calculator.