SBI
Gold Loan Calculator
If you’re planning to initiate a SBI gold loan application to fulfill your requirements, it is essential to understand the costs associated with it. In such cases, using a bank loan EMI calculator can help massively as it can give precise insights into the cost of borrowing. A SBI Gold loan calculator is a tool used to estimate the amount of money that can be borrowed against gold jewellery or ornaments. Also find out Gold Loan EMI with the help of this gold loan calculator.
STEP 1
Enter gold weight
grams
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Check the value of your gold and claim your cash now!
How to use a
SBI Gold Loan EMI Calculator?
Using a SBI gold loan EMI calculator is a simple and straightforward process. Here are the steps to use a gold loan EMI calculator:
1. Enter the loan amount that you wish to borrow from the lender.
2. Select the Purity of Gold.
Click on the "Calculate" button.
Based on the Rate of interest of SBI EMI’s will be displayed assuming the duration to be of 6 months, the calculator will instantly display the monthly EMI amount that you will need to pay for your gold loan
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Why choose
Trusted by over 20 Lakh customers, indiagold provides instant gold loans and secure gold locker services across India
Easy Repayment Options
Indiagold not only offers one of the lowest gold loan interest rate in India, but also offers the borrowers with hassle free repayment plans. This goes a long way from the borrower’s perspective as it gives them the headspace to pay off the loan more efficiently while utilizing the funds secured from the gold loan to its full potential.
Post Loan Settlement Convenience
Collateral release as fast as securing a loan! IndiaGold offers high convenience to the customers in the form of quick release, ensuring that the borrowers get the highest convenience even after closing the loan account.
High Borrowing Potential
indiaGold offers one of the highest Loan to Value (LTV) offered by the lenders. This enables the borrowers to secure a maximum amount of loan against their collateral!
Instant Disbursal
IndiaGold offers instant disbursal, the entire process of obtaining a gold loan is extremely quick and efficient, enabling the lender to disburse funds in under 30 minutes!! Talk about efficiency!
Low Documentation Requirement
Unlike some other loans available in the market, gold loan documents requirement is pretty low. The reason being the fact that these types of loans are backed by collateral, i.e. your gold. Hence, the entire process of obtaining the loan, including the documentation process is pretty straightforward and less time consuming.
How is Gold Loan EMI Calculated?
The EMI for a gold loan is calculated using a formula that takes into account the loan amount, loan tenure, and interest rate. The formula for EMI calculation is as follows:
EMI = [P x R x (1+R)^N]/[(1+R)^N-1]
Where,
P = Loan amount
R = Monthly interest rate
N = Loan tenure in months
Here is an example to help you understand how the EMI is calculated:
Suppose you borrow Rs. 1,00,000 at an interest rate of 12% for a loan tenure of 12 months. Using the formula, the EMI for this loan would be calculated as follows:
EMI = [1,00,000 x 0.01 x (1+0.01)^12]/ [(1+0.01)^12-1]
EMI = Rs. 8,885.87
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Benefits of Gold Loan Calculator
There are various loan calculators available online like gold loan calculator, personal loan EMI calculator, home loan calculator, among many. However, even though these are all loan products, these vary greatly. Hence it is essential to use the alright loan calculator to make the correct calculation. There are several benefits of using a gold loan calculator, including:
Quick and easy calculation: A gold loan calculator makes it easy to calculate the loan amount against gold jewellery or ornaments, helping an individual save both time and effort!
Accurate estimation: A gold loan calculator provides an accurate estimate of the maximum loan amount that can be obtained against the gold collateral. It takes into account the weight and purity of the gold, as well as the prevailing market value, to provide a reliable estimate.
Comparison of loan options: A gold loan calculator can be used to compare different loan options from different lenders. By inputting the same information into multiple calculators, you can compare the loan amounts, interest rates, and other terms and conditions offered by different lenders. This enables the borrowers to choose among the best fit gold loan schemes available to them.
Financial planning: A gold loan calculator can help you plan your finances by providing accurate loan estimates essentially helping decide whether a gold loan is the right option for you, and how much you can afford to borrow.
Transparency: A gold loan calculator provides transparency in the loan calculation process, and helps you understand the various factors that influence the loan amount. This can help you make more informed decisions about your finances, and avoid any surprises or hidden costs later on.
Features of Gold Loan
Attractive interest rates:
As gold loans are secured loans, they are subject to lesser interest rates as compared to other types of loans
Loan-to-value (LTV):
The LTV ratio is 75% maximum, capped by the Reserve bank of India (RBI). For example, if you pledge gold worth Rs 1 Lakh, you can get a maximum of Rs 75,000 as Gold Loan.
Lesser processing fees:
The processing fees of gold loans is very less.
No foreclosure charges:
There are no gold loan charges on foreclosure or prepayment penalty on paying the loan amount before the loan tenure, as compared to other loans
No credit score requirement:
Since gold loans are backed by gold or gold ornaments as collateral, the gold loan eligibility criteria is not highly dependent on the requirement for credit scores. Even though people with lesser credit scores can get these types of loans.
Factors affecting Gold Loan interest Rate
Interest rates on gold loans are typically calculated as a percentage of the loan amount, and it varies depending on the lender, the loan amount, and the prevailing market conditions. The interest rate is usually calculated on an annual basis, but is often expressed as a monthly rate for ease of understanding.
The interest rate for a gold loan is based on several factors, including:
The interest rate for a gold loan is based on several factors, including:
Loan amount: The interest rate may be higher for larger amounts of loan from SBI, as the lender may perceive larger loans to be more risky.
Loan tenure: Longer loan tenures may be associated with higher interest rates, as the lender is exposed to more risk over a longer period of time.
Gold purity: The purity of the gold used as collateral can also affect the interest rate. Lenders may offer lower interest rates for higher-purity gold, as it is considered to be more valuable and easier to sell.
Market conditions:
A gold loan calculator provides transparency in the loan calculation process, and helps you understand the various factors that influence the loan amount. This can help you make more informed decisions about your finances, and avoid any surprises or hidden costs later on.
Once the interest rate is determined, the interest is calculated by multiplying the loan amount by the interest rate and dividing it by the number of months in the loan tenure. For example, if the interest rate is 10% per annum and the loan tenure is 12 months, the monthly interest rate would be 0.83% (10%/12). If the loan amount is Rs. 1,00,000, the monthly interest would be Rs. 830 (1,00,000 x 0.83%/month).
Conclusion
A SBI Gold Loan Calculator is an extremely useful calculator for the borrowers who want to avail a loan amount using their ornaments or gold jewellery as collateral. The calculator updates the borrowers about the amount of money that can be availed based on the weight and purity of gold. The calculator also updates the borrowers about the monthly EMI (Equated Monthly Installment) to be repaid.
By having the important variables such as the interest rate and the loan amount, people can easily see the details of the loan, including how much is repaid. It is a better understanding of what is repaid and will enable people to make improved financial decisions.
Gold loans are also unique due to their distinguishing features. Being collateral-based loans, they are prone to being charged lower rate of interest and lower terms like no credit score check. Low processing fee and negotiable repayment terms are also offered to the borrowers. Some lenders in the India gold loan market disburses loans on the spot and offer free cover insurance up to 100% of the gold pledged with indiagold being the prime example. That is one additional security for the borrowers.
On the whole, the Gold Loan Calculator is a wonderful calculator to make lending a simpler affair and enable individuals to understand what the loan agreement is all about and make the necessary decisions.
By having the important variables such as the interest rate and the loan amount, people can easily see the details of the loan, including how much is repaid. It is a better understanding of what is repaid and will enable people to make improved financial decisions.
Gold loans are also unique due to their distinguishing features. Being collateral-based loans, they are prone to being charged lower rate of interest and lower terms like no credit score check. Low processing fee and negotiable repayment terms are also offered to the borrowers. Some lenders in the India gold loan market disburses loans on the spot and offer free cover insurance up to 100% of the gold pledged with indiagold being the prime example. That is one additional security for the borrowers.
On the whole, the Gold Loan Calculator is a wonderful calculator to make lending a simpler affair and enable individuals to understand what the loan agreement is all about and make the necessary decisions.