A gold loan calculator is an essential online tool that allows you to get an estimate of EMI that you will need to pay to repay it. It also helps to determine the amount of credit that you will be eligible to receive on pledging your ornaments. Here are some of the reasons that make it vital to use these calculators before proceeding with a gold loan application.
Importance of a Gold Loan Calculator
The importance of using an EMI calculator while applying for a gold loan is as follows:
- Helps in comparing lenders: Since interest rates on gold loans vary among lenders, you can use these calculators to find out the most affordable one. This way you can save more on EMIs and simultaneously avail the best deals from reputed lenders.
- Aids in planning credit repayment: Estimating payable EMIs prior to taking a loan helps you to make some changes in your monthly budget beforehand to save more. This way, you can repay your credit effortlessly and on time. This prevents defaulting on loan repayment, which can otherwise negatively affect your CIBIL score.
- Helps in determining credit amount: You can easily determine the appropriate credit amount and quantity of gold jewellery that you will need to pledge for the same. This way you can prevent applying for an increased amount and overburdening yourself while repaying it.
- Saves time and money: These calculators can provide you with instant and accurate results on sliding the pointers. Also, you will not have to pay extra money for its usage. Hence, you have the flexibility of using these calculators as many times as you want without compromising on the results.
Furthermore, using these calculators is extremely simple and can be done in a few simple hassle-free steps.
Steps to Use a Gold Loan Calculator
You can follow the steps below to use a gold loan EMI calculator:
Step 1: Navigate to the official website of a financial institution.
Step 2: Move to the gold loan calculator page.
Step 3: Adjust the pointers to enter credit amount or gold weight.
Step 4: Finally select the preferred repayment option.
Once done, the results will get instantly displayed on your screen. There are several factors that can affect the gold loan EMI. You can optimise these factors to make your gold loan affordable.
Factors Affecting Gold Loan EMI
Following are some of the factors that can influence the gold loan EMI:
- Credit amount: The loan amount is directly proportional to the EMI that you will have to pay for repaying the loan. This implies that for a higher loan amount, the EMIs will subsequently increase and vice versa.
- Interest rates: With an increase in interest rates, the EMI also increases. Thus, you should always go for reputed financial institutions offering affordable interest rates on gold loans.
- Credit tenure: The EMI is inversely proportional to the credit tenure, implying that for a longer tenure, the EMI will be lower. So, you can select tenure as per your comfort to repay the loan.
Once you have adjusted these components, you will need to check the eligibility criteria to apply for a gold loan.
Eligibility Criteria to Apply for a Gold Loan
You will need to tick the following criteria before applying for a gold loan:
- You should be a citizen of India.
- You must either be a self-employed or salaried individual.
- Your age should be between 21 and 70 years.
On meeting these criteria, you can proceed with the application for a gold loan.
Steps to Apply for Gold Loan
You can follow the steps below to apply for a gold loan:
Step 1: Visit the official website of a financial institution.
Step 2: Navigate to the gold loan application page.
Step 3: Click on the ‘Apply Now’ button.
Step 4: Enter the necessary personal and contact details accurately.
Step 5: Select the state and city of residence and nearest branch of the financial institution.
Once done, their representative will contact you. Furthermore, you can keep some KYC documents ready like a passport, Aadhaar card, driving licence, Voter ID card and so on during the application process.
You can obtain credit against this yellow metal from multiple financial institutions. These include a gold loan from Canara bank, Bajaj Finserv, and so on. However, you should note some vital points that are essential to keep in mind before the application process.
Things to Remember before Gold Loan Application
You should keep in mind the following pointers before applying for a gold loan:
- Additional charges associated: You should check the extra charges that are associated with the loan application process. These usually include documentation fees, processing fees, appraiser fees, and loan overdue fees.
- Credibility of the lender: Going for a credible lender is essential for ensuring the utmost safety of your jewellery. Hence, make sure to check the market reputation of the creditor before proceeding with a loan application.
- Features of gold loan offered: The features of the gold loan vary to some extent across lenders. Hence, it is highly essential to compare those and select the one that suits you best.
- Repayment schedule available: This is another point that you must check with your creditor while applying for a loan. Once done, you can repay your credit easily without any delay or default.
The utility of a gold loan calculator is massive, which accounts for its extended usage among potential borrowers. So, it is essential to use it for effortless assessment and timely repayment of your credit.