What is Gold Loan?
A gold loan is a secured loan you can avail of by pledging your gold items with the lender. The pledged gold articles should be within a range of 18-24 carats as collateral. The gold remains on the books of the gold lender. The lender holds back the market exposure risk arising from the variations in the market price of gold.
The gold pledged as an asset may be on-sold by the borrower. People usually avail gold loans in cases of urgent monetary requirements. Once the customer repays the principal amount along with the interest amount on the gold. The lender will then return the pledged gold.
The lender approves the loan amount up to a certain percentage of the gold. It is usually up to 75%, based on the current market value. The loan amount depends on many factors like-
- The contemporary market value of gold.
- The credit history of the borrowers and the financial facilities they can avail themselves of.
- Weight, amount, and quality of the gold articles pledged.
As long as easy repayment is concerned, most banks and NBFCs (Non- Banking Finance Organisations) in India offer Gold loan interest rates at quite reasonable rates with affordable EMIs, flexible repayment modes, and long tenure.
How to Repay Gold Loan Using Gold Loan EMI Option?
One of the most common modes of repaying a gold loan is through regular EMI payment. EMI stands for Equated Monthly Installment. It plays a pivotal role in most of the loans offered by Indian commercial banks and finance organizations. The regular EMI option provided by gold loan policies is a popular and convenient repayment method, especially among people living on a salary. The EMI option constitutes the payment of both the principal amount as well as the interest.
By this method, the borrower can repay the interest off as monthly installments or EMI. So that only the principal amount is left to be pay later, by the end of the tenure. Since these two popular and effective modes of repayment involve EMI. It is important to have a knowledge of how much should be paid off monthly. This is where the importance of a tool called the Gold Loan EMI Calculator comes into play.
How to Calculate Gold Loan EMI with EMI Calculator?
Gold Loan EMI Calculator online can be accessed by individuals or applicants to calculate the respective EMI. The gold articles they have provided are to be kept as collateral or security with the lender or lending organization until the loan is fully repaid within the assigned tenure, as mentioned above. A Gold Loan EMI calculator can help an applicant to get the approximate amount of EMI that needs to be paid off monthly to repay the borrowed amount. The Gold Loan EMI Calculator also allows the borrowers to try and estimate the EMI varied interest rates. The repayment tenure offered by financial institutions they have availed the gold loan at. These are
- The principal amount the bank provided from their gold.
- The interest rate settled by the lender or lending institute
- The time period of loan.
Banks like HDFC Bank, SBI, ICICI Bank, Muthoot Finance, Axis bank provide an online gold loan EMI calculator in their officially curated website. Platforms like Paisabazaar and NBFCs like IIFL(Indian InfoLine) have a gold loan EMI calculator provided on their website.
Availing a gold loan EMI calculator does not require any additional fee and you can use it until it serves its purpose to the customer. Gold Loan is now one of the top-notch loan policies in India. So, have complete information of the EMI payments and try to avail the online gold loan EMI calculators to make sure it is paid off within the deadline. You are paying the exact amount needed- neither more nor less.