Gold Loan Calculator
Gold Loan Eligibility Criteria
To avail a gold loan you will be required to fulfil the following eligibility criteria:
- Minimum Age: 21 years of age
- Maximum Age limit: 65 years
- Loan Amount: Banks offer gold loan up to Rs 20 lakhs. The amount may extend up to Rs 2 crore for which high-interest rates are charged.
- Employment Requirements: Gold loans are available for all individuals irrespective of their employment. Salaried employees, self-employed individuals and even house-wives with no source of income can avail a gold loan.
- Gold as a Security: The gold to be deposited in the form of security should range between 18-24 carats. For purity, the average gold price of the previous 30 days for 22 carats is adjusted. The ornaments that can be used to keep as security include gold bars and coins with 18-24 carats purity.
- CIBIL Score Requirements: As such there are no CIBIL score requirements to get a gold loan. But, previous payments history regarding gold loans may be evaluated to check your efficiency of repayments.
- Documents Required: Include only identity proof and address proof. No Income Proof is required to get a gold loan in India.
Steps to Check the Gold Loan Eligibility:
A gold loan eligibility calculator is a tool that determines whether or not a borrower is qualified for a loan. To determine eligibility with Dialabank, complete these steps:
- Visit the Dialabank website.
- From the home page, select Gold Loan
- Navigate to the Gold Loan Eligibility Calculator.
- Fill out the form with information such as your name, phone number, gold weight in grams, etc.
- Click the ‘Check Eligibility’ button.
- Enter your OTP (One Time Password)
- Click the ‘Get Offers’ button
- You will get offers based on the information you have provided.
- A Dialabank Customer executive will get back to you as soon as possible.
Gold Loan EMI Calculator
Gold Loan EMI (Equated Monthly Installment) is the monthly payment you make to the bank or financial institution to repay your loan. The principal amount and the interest component are both included in the EMI. The interest component of your EMI is higher in the beginning and decreases with each EMI. The EMI Calculator calculates your monthly EMI at the selected interest rate for a specific duration.
The EMI is determined by the loan amount, interest rate, and loan term.
Loan quantity: If you ask for a larger gold loan online, your EMI will be higher.
Interest rate: The interest rate is directly proportional to the cost of EMI. Higher the interest rate greater the EMI.
Loan duration: In the case of an extended loan period, the EMI on a gold loan is reduced
|Gold Loan Calculator
|Rate of Interest||6 months||1 Yr||2 Yrs||3 Yrs|
Gold Loan Calculator
Gold loan eligibility is evaluated in terms of the loan per gram of gold or loan amount, which might be the value of gold pledged (depending on gold price), purity of gold, and LTV used by banks. The gold price is calculated using the last 30 days’ average cost of 22-carat gold and the loan-to-value granted by your bank. Your loan amount eligibility determines your Gold Loan EMI, the interest rate is given, and loan tenure.
Illustration 1: The borrower has a piece of gold jewellery weighing 100 grams. Several banks have published estimates of gold loan per gram and gold loan interest rate based on their appraisal of the borrower’s gold weight, purity, and loan to value ratio.
The gold jewellery is estimated to be 22 carats with a net weight of 75 gram by Bank X. (after deducting gems and stones). The bank uses an LTV ratio of 70% and charges an interest rate of 9.50% on a loan.
At the lowest gold loan interest rate of 9.50 per cent, the minimum EMI is Rs 25,497 per lakh borrowed amount for four years.
Bank Y estimates gold jewellery with a net weight of 90 gm and a purity of 22 carats to be 22 carats (after deducting the weight of gems and stones). The bank imposes an LTV of 90% and charges an interest rate of 29.00%. How do the two gold loan offers compare in terms of loan amount eligibility and hence, EMI on a Gold Loan.
Banks will use the average price of gold over the past 30 days to assess the worth of the gold to determine a borrower’s eligibility for a gold loan. The current gold pricing per 10 gram is Rs. 47,840
|Bank||Gold Loan Eligibility||Interest Rate||Monthly EMI|
|Bank A||₹ 2.07 Lakh||9.50%||₹ 2,78,189|
|Bank B||₹ 2.66 Lakh||29.00%||₹ 3,62,716|
The borrower is eligible for a smaller loan amount of Rs. 2.76 Lakh from Bank X for 100 gram of jewellery at a cheaper interest rate than the other bank. Given the reduced loan amount and lower interest rate, the borrower must pay Bank X a monthly EMI of Rs. 3,76,150.
Mr A is qualified for a higher loan amount of 2.96 Lakh from Bank Y for 100 gram of jewellery, but he will pay a higher interest rate and hence a larger EMI on loan.
Why is Gold Loan preferred?
To avoid financial disruptions, people usually take gold loans by keeping gold at stake and in return they ask for the money. Some of those reasons include:
- Interest rates are low as compared to other products, such as personal loan, business loan, MSME loan, etc.
- Flexible repayment period that ranges from few days to several months. You get time to repay the loan.
- Many financial institutions do not impose pre-payment charges on gold loans
- Minimal documentation with online and easy process
- Disbursals in very less time.
Highlights of Gold Loan
- Eligibility: An Individual must be between 18 to 70 years of age. Also he/she must own gold to apply with major banks in india.
- Interest Rate: Majority of the banks and NBFCs in India offer Gold loan interest rate at very competitive and close interest rates with flexible repayment options and affordable EMIs.
Gold Loan Rate per gram
The Gold Loan Calculator calculates the amount of gold loan available per gram based on the purity level of jewellery, its weight, the average value of 22-carat gold in the past 30 days and LTV provided by your bank. This average value has to be adjusted down for purity before multiplying it with the LTV of your bank.
Gold Loan Rate Per Gram as per Gold Purity
The gold loan calculator estimates the gold loan per gram based on the overall weight of the jewellery, the level of purity, the previous 30 days average price of 22-carat gold, and the loan to value supplied by your bank. According to today’s gold pricing, the largest gold loan per gram against 22-carat gold is Rs. 4,306 per gram. The previous 30 days’ worth of gold loan rates per gram is an essential element when calculating gold loan rates per gram.
The LTV is multiplied by the 30-day average price of 22-carat gold, which one must reduce down for purity level before being multiplied by the LTV.
According to the chart below, the previous 30 days average price of 22-carat gold is Rs. 44,963 as of June 2nd, 2021
|Gold Purity||Past 30 Days Average Price Of Gold Per 10 Grams||Maximum LTV||Gold Loan Per Gram Of Gold|
If you take a loan against 10 gram of 18-carat gold, you will be eligible for a lower gold loan per gram of jewellery. If you take out a loan against 18-carat gold, you will qualify for a gold loan of Rs.3,329 per gram of gold. If you take out a loan against 22-carat gold, you would be eligible for a gold loan rate of Rs.4,621 per gram.
Gold Loan EMI Calculator
The gold loan calculator helps you to calculate the EMI amount that you are required to pay every month in the form of monthly instalments. An EMI is calculated depending upon your loan amount and the tenure of the loan, upon which the interest rates are charged. The key areas that a Gold loan calculator considers are:
- Higher the loan amount, higher the EMI amount.
- Higher the interest rates, higher the EMI amount.
- Higher the loan tenure, lower the EMI amount.
The EMI calculator will tell you how reasonable a loan is for you. Always use the calculator to receive a quick price on your EMIs. With this calculator, you can determine the EMI of any loan, whether it is a house loan, a personal loan, a vehicle loan, an education loan, a loan against property, a two-wheeler loan, or a gold loan. If the quote is suitable, you may apply for the loan straight through Dialabank.
To calculate your loan EMI, follow the procedures outlined below:
- In the EMI calculator, enter the loan amount you want to take out.
- Then input the loan term (months).
- Mention the rate of interest (reducing).
- Click the “calculate” button.
- Our EMI calculator will show you how much your EMI will be.
Along with your EMI, you will also receive:
- The total amount plus interest
- PA / PM interest rate is a flat rate.
- The total amount of interest.
- Amount of interest paid every year.
If you believe the EMI is too high, you may always recalculate. This time, input a lower loan amount or a longer loan term into the calculator. You can also continue to recalculate until our calculator provides you with an EMI that you are happy with.
Also, remember to compare quotations from several banks. You may accomplish this by inputting the loan amount and interest rate, together with the loan tenure of, say, bank “A.” Check to see how much it all adds up. Then repeat with bank “B.” Apply for whatever best meets your requirements and desires.
In today’s market, banks are presenting you with a plethora of loan offers. Before making a contract with these banks, consider the following factors. Don’t get tempted by paying hefty EMIs at low-interest rates.
Gold Loan Interest Calculator
Gold loan calculators are simple and easy to use tools that allow you to make Alterations regarding the loan amount, repayment period or interest rates. The calculator allows you to get an estimation on the actual financials of your transactions.
Following are the fields of a Gold Loan Calculator:
- Loan amount – This is the overall total amount which you’re intending to avail.
- Repayment tenure – The repayment tenure tells you the time in which you’ll be repaying your loan. You can choose the number of months that you are fine repaying the loan.
- Interest rate – This interest rate is the rate in percent which will be imposed on the loan amount. This figure will vary from provider to provider.
All you need to do is put up the relevant information and click on submit. You will be shown the entire structure of the monthly repayment amount that you have to give as well as the partition of principal and interest amounts.
What is a Bullet Repayment Scheme?
Bullet Repayment Scheme allows the applicants to pay the interest amount in the form of EMIs while the principal amount is paid at the end of the tenure period. The main features of a Bullet Repayment Scheme are:
- It relieves you of the strain of repaying the principal every month.
- It is the best option available for short tenure loans, especially gold loan of up to 6 months.
- Allows for a flexible repayment plan in which you may choose to pay the loan interest as monthly EMIs and the principal payment in a single installment after the loan term. Some banks also allow you to pay a percentage of your principal as part of your monthly installments.
Why not to opt for a Bullet Repayment Scheme?
- On bullet payback loans, banks may give a lower LTV (Loan-To-Value) and charge a higher interest rate.
- Because it is not a diminishing balance loan, you wind up paying more interest on your bullet payback loan. Even though the reported interest rate is the same as an EMI Gold Loan, the effective interest rate on a bullet payback loan is higher.
Gold Loan EMI Payments
- EMI allows a loan applicant to make easy payments every month that saves him/her from the burden of payments altogether.
- EMI options are best suitable for long-term loans.
- The rate of interests is lower in EMI payments as compared to the Bullet Repayment Scheme.
- EMI payments can be a burden for some as instalments are required to be paid every month.
Better compare EMIs with same tenure And then with rate of interest
- Examine your reimbursement capacity (EMI): You repay the loan in Equated Monthly Installments (EMIs), including principal and interest. Because you pay the equivalent sum every month, these payments are known as equated monthly instalments. The EMI is determined by the loan amount, interest rate, and loan length. Every month, it is an uneven mix of principal payments and interest expense. Initially, the bank recovers its interest payments and eventually more of the principal repayment toward the conclusion of the loan term. The EMI amount should not exceed 40% of your monthly income. Offers from different banks should be considered because they may differ from one another. Your participation in the process might result in a win-win outcome for you.
- Tenure: It is one of the most crucial aspects to consider when taking out a loan. It relates to the number of years for which the loan has been taken out. The longer the term, the greater the interest paid and the smaller the amount of EMI to be paid, and vice versa. It is one of the characteristics that aid in comparing EMIs from several banks while maintaining consistency for the connection and smoothing the decision-making process.
- Loan Disbursal Time: The loan disbursal time is when the loan is processed, and the client receives the loan amount from the bank. The time it takes for a bank to disburse funds varies. It is a significant consideration since there is always a purpose for taking out a loan, and if the chance to achieve that goal is missed, the loan is rendered useless. So better prepare ahead of time.
- Market surrounding (interest rate): Today, there are many lenders in the market, and every bank, whether nationalised, private, or international, offers loans. Depending on the customer’s characteristics, each bank offers various personal loan rates and house loan rates. So, before closing a purchase, one should compare offers from many banks and then decide. Be cautious that certain persons may deceive you by charging a high rate of interest at a low rate and informing you of the same at a flat rate of interest. As a result, it is usually essential to verify the complete details of the banks and make a better comparison in terms of EMIs. Tenure and rate of interest and maintaining assignment consistent across all banks will simplify your comparison and result in a better analysis, ultimately leading to a sensible selection.
- Processing Fee, Administrative Charges, and Pre-Payment Charges: When you borrow, your loan may carry other charges in addition to interest. These charges may include a Processing Fee, which the bank charges to process your file and pay to the processing hubs. These charges may range from 1-2 per cent of the loan amount sanctioned by the bank. Aside from that, there are Pre-Payment Charges that the loan contains for the Pre-Closure of the Loan. So, it is always better to acquire a loan with no penalty for pre-closure since, in the long term, you may have enough money to pay off your debt and so save interest on it, or you may have the option to have your loan transferred at a low rate of interest.
How does DialaBank’s Gold Loan EMI Calculator work?
To use Gold Loan EMI Calculator at Dialabank, you will need to provide the following details:
- The interest rate offered by the lender
- Loan amount you agree for Gold loan principal
- The comfortable repayment tenure
After submitting these details, the EMI calculator will give you the instant results by calculating the monthly instalments (considering the ongoing gold prices) to be paid by the borrower. Similar information can be used in other EMI calculators as well such as Personal loan EMI calculator, EMI calculator, Car loan, Home loan calculator etc.
Why should you use the Gold Loan EMI Calculator from Dialabank?
To calculate Gold Loan EMIs, the calculator can help you in many ways:
- It saves you complex and monotonous calculations.
- Everytime you use calculator, It calculates using the latest gold prices
- It offers you to try out different options to find the Gold loan that is favourable and perfectly matches your requirement.
- By knowing the amount which you need to pay every month, you can then adjust your monthly budget so that you pay the installments on time every month.
FAQs on Gold Loan Eligibility:
- When should you opt for a gold loan?
Gold loan is a secured loan. In case you are in urgent need of cash requirement and don’t have the necessary CIBIL score and income, then you can opt for a gold loan by keeping your gold jewellery in form of security with the banks.
- How to calculated gold loan interest rates?
Just calculate the total amount you are required to pay by the end of the loan tenure using our Gold loan calculator. Then, subtract the total amount payable from the principal amount to know about your gold loan interest rate.
- How to calculate gold loan EMI amount?
Using a gold loan calculator you can easily calculate the gold loan EMI amount.
- What payment options are available to repay a gold loan?
You can repay your gold loan using either an EMI option in which the principal amount and interest rates are paid every month for a fixed tenure or can use Bullet Repayment Scheme for repayment options in which the interest rates are paid every month while the principal amount is to be paid at the end of the loan tenure.