What is the Gold Loan EMI Calculator?
The Gold Loan EMI Calculator is an online tool that individuals can use to calculate the Equated Monthly Installments (EMI) for the gold loan they plan to take. They can enter details about the loan amount, interest rate, and repayment tenure to get an estimate of the monthly payment. This loan is secured against their self-owned gold or gold ornaments, which are kept as collateral until the loan is fully repaid. By using the Gold Loan EMI Calculator, applicants can explore different interest rates and repayment options offered by various financial institutions.
Highlights of Gold Loan
- Interest Rate: Most banks and NBFCs in India offer competitive interest rates on gold loans, making the EMIs affordable with flexible repayment options.
- Eligibility: To apply for a gold loan with major banks in India, an individual must own gold and be between 18 and 70 years of age.
Why is Gold Loan preferred?
Individuals often prefer gold loans to meet their immediate financial needs for several reasons:
- Minimal documentation and a hassle-free application process.
- Instant loan disbursals, allowing for quick access to funds.
- Flexible repayment tenure, ranging from a few days to several months.
- Many financial institutions do not charge pre-payment penalties on gold loans.
- Low interest rates compared to other lending products like personal loans, business loans, MSME loans, etc.
How does MybankingTips Gold Loan EMI Calculator work?
To use the Gold Loan EMI Calculator at MybankingTips, you'll need to provide the following details:
- The interest rate offered by the lender.
- The loan amount you require or are subscribing to for the gold loan principal.
- The intended repayment tenure.
Once you submit these details, the EMI calculator will instantly calculate the monthly installments to be paid by the borrower, taking into account the ongoing gold prices. Similar information can be used in other EMI calculators such as the home loan calculator, personal loan EMI calculator, car loan EMI calculator, etc.
Documents Required to Apply for Gold Loan
To apply for a gold loan, you'll typically need the following documents:
- A duly filled application form along with 2 recent passport-sized photographs.
- KYC documents of the applicant, which may include:
- Passport
- Voter’s ID card
- Aadhar card
- Driving license
- PAN card
- Utility bills (Water & Electricity Bills)
- Proof of self-owned gold, ornaments, or coins.
- The last 12 months’ bank statement.
- Any other document required by the lender.
FAQs
1. Why apply for a gold loan through MybankingTips?
When you choose a gold loan through MybankingTips, you can conveniently review the interest rates, processing fees, foreclosure/pre-payment charges, and other details of gold loan offers from top banks and NBFCs in India. This information is readily accessible and provided free of charge.
2. What happens to the gold as collateral?
Once you use your gold ornaments or coins as collateral for a gold loan, the bank or NBFC (non-banking financial company) holds them in its secure vault until the loan amount along with interest is repaid in full.
3. How to use the gold loan EMI calculator?
The user-friendly gold loan EMI calculator uses important data like loan amount, repayment period, and interest rate to give you an estimate of your monthly installments for a particular loan. This tool is free to use and you can use it as many times as you want to help you plan your finances.
4. Who is eligible for a gold loan?
Any Indian citizen aged between 18 years and 70 years who owns gold jewelry and coins can apply for a gold loan with minimal documentation. However, it's important to note that gold bars and gold coins in excess of 50 grams each are currently not accepted as collateral for a gold loan.
5. What is the tenure for a gold loan?
The tenure of a gold loan typically ranges from a few days to a few months. In rare cases, a gold loan may have a tenure of a few years, but this would depend on the discretion of the bank and the actual loan amount disbursed.