Gold Loan EMI Calculator 2024
What is a Gold Loan?
A Gold Loan is a secured loan where individuals pledge their gold ornaments or assets as collateral to obtain loan amount. The loan amount is typically a percentage of the gold’s current market value.
Borrowers repay the loan through EMIs for a specific tenure. Gold Loan offers quick funds to people who are in short-term financial needs as they come with lower interest rates compared to other loans
What is a Gold Loan EMI Calculator?
A Gold Loan EMI Calculator is an online tool that helps borrowers estimate their monthly EMI based on the loan amount, interest rate, and tenure. It simplifies the process of budgeting by providing accurate repayment details.
Advantages of Gold Loan EMI calculator
- Quick Calculation: Get your EMI, complete interest rate in a matter of few seconds just by entering a few details
- Comparison: Allows users to compare EMI amounts for different tenures and interest rates, enabling informed decisions.
- Interest Breakdown: Get the complete amortization schedule
- User-Friendly: Easy to use, just change the input and get different details
How Does Gold Loan EMI Calculator Work?
Gold Loan calculator uses a formula to compute the EMI. You must input the loan amount, tenure, and the interest rate and the calculator automatically computes the EMI you need to pay. It also provides an amortization chart
Formula for Gold Loan EMI Calculation
EMI = [P x R x (1+R) ^N]/ [(1+R) ^ (N-1)]
Where,
- P is the principal loan amount
- r is the monthly interest rate
- n is the number of monthly installments
Example
For a loan amount of ₹2,00,000 at an interest rate of 10% for 3 years, the EMI will be approximately ₹ 6453 per month
How to Use Gold Loan EMI Calculator?
- Enter the Input amount, tenure, and interest rate
- The EMI calculator will automatically compute the EMI and total interest rate towards the Gold Loan.
FAQs for Gold Loan EMI Calculator
1. Can I use the Gold Loan EMI Calculator for different loan amounts and tenures?
Yes, the calculator is flexible and allows you to input various loan amounts and tenures to compare different options.
2. Does the calculator consider the impact of processing fees or other charges?
No, the Gold Loan EMI Calculator does not include in any additional charges or fees
3. Can I use the calculator for different types of gold?
Yes, the calculator can be used for all types of Gold as long as the loan amount is based on the value of Gold
4. How accurate are the EMI calculations provided by the calculator?
The calculator uses standard financial formulas and provides an approximate EMI based on your inputs about your loan. However, the processing charges and other associated fees will not be taken into account
5. Can I use the calculator to estimate the total interest payable on the Gold Loan?
Yes, in addition to the EMI calculation, the Gold Loan EMI Calculator will also provide the total interest rate that you will have to pay towards the entire tenure
