A Guide on Gold Loan EMI Calculator

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Gold Loan EMI

Gold is one of the popular investment modes worldwide, particularly in India. Mostly every Indian household has this yellow metal. This is because this metal is a symbol of wealth and auspiciousness. This is the reason why collateralizing it to get funds makes for a feasible borrowing medium to meet your monetary or financial mismatches. However, borrowing any loan amount against gold with zero effective repayment plan may come across as a burden on your finances and lead to loan default. In this case, using an online gold loan EMI calculator can assist you. However, before understanding what’s gold loan EMI calculator is, let’s know what gold loan EMI is.

What’s gold loan EMI?

EMI means equated monthly instalments. Like any financial instrument, EMI against a gold loan shows the monthly repayments that you, as a borrower, may need to make against a gold-led fund. This proceeds remains constant across the loan repayment tenure and comprises the interest constituent and principal component. For instance, suppose you availed of a Muthoot Finance gold loan. Now, when you avail of this credit option, gold loan EMI is one of the options offered to you for repaying your borrowed loan amount. However, note that before you zero on the Muthoot Finance gold loan, review the offer Muthoot gold loan interest rate to understand if it is within your budget. Once you are done with this, ensure to distribute the availed loan proceeds across repayment tenure as per your preference to repay the loan proceeds in easy and comfortable EMIs.

Having prior knowledge about your periodical repayment proceed is crucial to effectively plan out your finances across the whole repayment tenure. As an outcome, this lowers the chances of any default or delayed payments. An online instrument that may help you to compute comfortably is an online gold loan calculator.

What’s a gold loan EMI calculator?

An online gold loan EMI calculator is equipment that allows you to decide the possible monthly repayments that you will incur against the loan proceeds. You can even get a total breakdown of your overall interest constituent and principal component separately by using this specific online gold loan tool. In this aspect, an online EMI calculator even performs the activity of an interest calculator well. To use this online gold loan EMI calculator, all you must do is input your required loan proceeds, suitable repayment tenure and rate of interest. This makes using the tool before availing of a loan a prudent route for saving money and taking an informed decision.

What’s the formula to compute your gold loan EMI?

A gold loan EMI calculator uses a simple formula to allow you to find out your EMI. This formula may mathematically be represented as –

A = P x R x [(1+R) n / {(1+R) n – 1}]

Note that, here, A infers periodical EMI, P means principal loan proceeds, R is the rate of interest, and n means overall repayment tenure. Prospective gold loan applicants can even use this formula for deriving the EMIs manually. However, if you go for manual calculations, then it may be time-consuming for you, and you may have room for numerous errors, which is not good for financial undertakings. Using automated EMI calculators eases the whole procedure. If you are one of those looking to take the help of this online tool, you must know how to use it.

Also Read: Muthoot Gold Loan Interest Rate

How can you use an online gold loan calculator to determine your EMIs?

An online gold loan calculator is very simple to use and access. Almost all lenders offer an online calculator on their website. To use this online tool, you must first visit the official website of the selected lender. After this, you must proceed as follows.

To compute the required gold.

Step no. 1 – Click on the tab ‘choose the required loan proceeds’ on the page of the calculator.

Step no. 2 – Next, provide the required loan proceeds and select your suitable repayment tenure and rate of interest.

Post this, and the calculator will show the data for the required gold, overall interest payable, and, lastly, monthly interest.

To compute the required loan proceeds.

Step no. 1 – Click on the option ‘select available gold weight’.

Step no. 2 – Input the overall gold weight you possess in terms of gram alongside its purity. Purity must be in Karats.

Step no. 3 – Provide your suitable tenure and interest rate.

Upon finishing this procedure, the online gold loan calculator will show the overall funds that you can get against your security, monthly interest, and overall interest. In case you are content with its outcome, you can place an application for it instantly. For this, you just need to input your contact details and hit on the apply now option.

What are the parameters impacting your gold loan EMI?

Now that you are aware of the process to use the online gold loan EMI calculator, ensure to know all the distinct parameters impacting the way it functions. Listed here are three constituents of the online gold loan EMI calculator that impact your outcome.

Loan proceeds – This shows your principal constituent or overall fund amount against your gold jewellery. These proceeds are proportionally linked with your EMI amount. Thus, your gold loan EMI may enhance with the increase in the principal amount.

Repayment tenure – This shows the overall time for which you may take the loan. The repayment tenure is inversely proportional to your EMI proceeds. A higher tenure will reduce your EMI. And on the contrary, opting for a short repayment tenure may result in a higher EMI.

Interest rate – The interest rate of the gold loan is directly linked with the overall repayment amount and, thus, your EMI. A higher rate of interest will raise your overall interest constituent and, thus, enhance your monthly repayment value.

What are the advantages of using an online gold loan calculator?

Listed below are some of the crucial ways wherein you, as a prospective borrower, may benefit from using an online calculator –

Instant results – Computing EMIs through manual route via mathematical formula takes a lot of time and is even prone to manual errors. In contrast, an online gold loan EMI calculator provides instant results in no time, saving adequate energy and time.

Accurate computation – Apart from being a time-consuming process, manual computations can be filled with errors. A financial decision to opt for a gold loan requires precise and accurate computations. With an online gold loan calculator, you can get accurate results instantly.