ICICI Gold Loan Calculator
Gold loans are one of the most sought after lending products in India. This popularity can be attributed to the fact that the majority of gold in the country is held in private households, thus allowing easy access to gold as collateral to secure the loan along with the fact that securing a gold loan is extremely easy and cost efficient when compared to other traditional lending products such as personal loans.
Now availing a gold loan is fairly easy in India, however the thing that borrowers often struggle with is the accurate calculation of repayment or liability which stops them from planning efficiently. This is where modern tools such as gold loan calculators come into the play.
There are various tools available online especially by lenders such as IndiaGold, ICICI, etc. which can help a potential borrower check and calculate the loan commercials, essentially helping in a more responsible borrowing.
How Does A Gold Loan Calculator Work?
A gold loan calculator is a highly useful tool which aids the user with instantaneous calculations about the gold loan repayment based on commercials input by the users. The results are extremely accurate and can help the user with critical decision making. Following are the steps how a gold loan calculator works:
- Input commercials : Based on the commercials and offers currently being run by different lenders, the user needs to input number like principal amount, gold loan interest rate offered by the lender, gold loan tenure, and in some cases the loan to value ratio (LTV)
- Click on Calculate : Once the relevant inputs are punched in, the user needs to click on the calculate button. Based on the inputs, the calculator gives an accurate monthly repayment amount or the applicable emi for gold loan.
Advantages of a Gold Loan Calculator
Gold loan calculators are extremely useful tools with great utility. These calculators offer a host of benefits both direct and indirect. Read along to know a few of the many advantages:
- Aids in Easy Calculation : The main utility of a gold loan emi calculator as a tool is to aid the user in making calculations regarding the gold loan with the help of inputs such as principal amount, tenure, interest rate, etc. the tool makes it extremely easy to do so with the help of easy interface, and instantaneous results based on the inputs.
- Saves Time : A gold loan calculator can help save massive amounts of time by helping the borrower take into account different scenarios instantly. A user can compare various gold loan schemes based on the commercials and make real time calculations to come to a conclusion.
- Helps Efficient Planning : By providing the user power to make instant calculations, the gold loan tool aids the user in the planning activity as it can help compare different loan schemes by different lenders and based on the result, the user can do a suitability assessment and plan their repayments efficiently.
- Promotes Responsible Borrowing : A gold loan calculator gives accurate estimates about the repayment amount, this can help the borrowers in making responsible borrowing decisions which ultimately leads to lesser defaults and higher on-time repayments.
- Boosts on time repayment : The calculator tool aids in comparing gold loan schemes based on their commercials like gold loan value, interest rates, tenure, gold loan processing fees, LTV ratio for gold loan among others. Which helps the borrower make responsible choices regarding borrowing which ultimately leads to higher on-time repayments.
Conclusion:
Gold loans are preferred in India because these are easily available, less formalized, and cost less than personal loans. However, most of the borrowers don't have the facility to get a quick estimation of the amount of repayment easily, which restricts planning. Gold loan calculators overcome this by allowing the user to feed data such as loan amount, interest rate, tenor, and even LTV ratio in some calculators. A click provides users with accurate EMI or repayment estimation.
The calculator is beneficial in several ways: it eliminates cumbersome mathematical computation, saves time, allows repayment of loans immediately in comparison to other sources, and allows sound financial planning. Above all, the calculator makes borrowers responsible by exposing repayment burdens, thus preventing defaults and promoting timely repayment. Simply put, gold loan calculators like ICICI make borrowers prudent and cautious in their lending and borrowing practice.
