Bank of Baroda Gold Loan Calculator

Availing a loan has become increasingly popular and easy - All thanks to the modern lenders and an increased efficiency in the processing. However, the same cannot be said about the comparison stage, especially where the borrower needs to check the suitability of the terms being offered by the lenders.

There is an enhancement in the form of a simple yet intuitive tool - A gold loan calculator.

There is a flurry of tools available online, each aiming to serve the same purpose - make calculations easy. However, one needs to find the most accurate one to actually serve the purpose as it is intended. This is where gold loan calculators that are dynamic in nature that can help you calculate the commercials for gold loan offering by Bank of Baroda shines!

Following are a few reasons why leveraging an online gold loan calculator can save you efforts and time!

• Easy Calculations : One of the defining features of a gold loan calculator is that the calculations are really easy to do. As opposed to the manual calculations, the effort required to do calculations using a calculator is much more easy and time efficient. All that the user needs to ensure is that they key in the correct parameter for the calculator to give accurate results.
• Helps determine eligibility : Using a gold loan calculator can help the user determine their gold eligibility as it gives extremely accurate results based on the data provided, which aids in making eligibility based data decisions. Gold loan calculator in a way works as a gold loan eligibility calculator for some.
• Helps in Efficient Decision Making : Using a gold loan calculator eliminates the need to manually check with multiple lenders or manual calculations. It enables the user to key in different commercials as provided by the lenders and make calculations on a real time basis. This makes the decision making really efficient which is beneficial for the borrower.

Few basics to Understand Before Using a Gold Loan Calculator:

• Principal : This is the loan amount consideration i.e. the amount secured as a loan by the borrower from a lender. It is the principal amount on which the interest is calculated. This money is supposed to be paid back to the lender by the borrower along with the interest consideration and charges outstanding (if any).
• Interest rates : Interest rate in general terms refers to the cost of borrowing. It is the additional amount in terms of percentage of the borrowed amount. Lower the interest rates is better for the borrower, as it means a lesser amount is payable as a cost to borrow the money from the lender. Although many lenders offer very competitive interest rates, it is advisable to check and compare lender basis the rates offered by them before making a decision. IndiaGold offers interest rates on gold loans starting at just 0.75%* per month which is among the lowest in the industry. Interest rates largely influence the monthly payments and the output of the gold loan calculator, hence it is essential to key in accurate interest rate estimates provided by the lender.
• Loan to value ratio (LTV) : Loan to Value (LTV) refers to the maximum loan amount in percentage terms that can be availed with respect to the market value of the pledged security i.e. the gold against which loan is being availed. A higher LTV ratio means a higher eligible gold loan per gram and vice versa. If one has a high capital requirement, then it is advisable to go ahead with the lender offering a high LTV.
• Tenure : Tenure refers to the number of months or years for which the borrower is borrowing the money from the lender. Upon completion of tenure, the borrower is supposed to pay back the entire loan amount and dues (if any) to close the loan account and secure back the gold collateral. It is a key metric while using a gold loan calculator.
• Monthly Payments : This is the output of the gold loan calculator. Based on the variables punched in by the borrower, the calculator does its calculations and gives a monthly payable amount, which needs to be paid to the borrower as repayment. Monthly payments can be influenced by various factors such as Principal, Interest Rates, tenure, etc.