11 April 2025, 06:25 PM
An online Gold Loan EMI Calculator helps you to know the amount of EMI payment(monthly installment) you will need to pay for your loan against Gold.
It calculates this based on the value of your gold (weight, purity, and current gold rate), the Loan-to-Value (LTV) ratio, and how long you want to take the loan for. This tool is helpful to understand your monthly payments before applying a gold loan for you.
How It Works:
1. Enter Details: You need to enter the weight and purity (karat) of your gold, and the current market price per gram.
2. Gold Value Calculation: The calculator finds the total value of your gold based on the inputs.
3. Loan Amount Estimation: It shows how much loan you can get as per the LTV ratio (this is the % of gold value that lenders give as a loan).
4. Choose Loan Tenure: You enter how many months or years you want to repay the loan.
5. EMI Calculation: Using the loan amount, interest rate, and loan tenure (in months), the calculator lets you know an estimated EMI you’ll need to pay each month.
The Gold Loan Calculator online helps you find out how much loan you can get based on the gold you want to pledge.
Here's how Does the Gold Loan EMI Calculator Work?
Here's a more detailed breakdown:
1. Input Information
Gold details: Enter the Gold weight, select the Gold Purity ( carat), of the gold you intend to pledge.
Loan amount: Enter the desired loan amount or let the calculator determine it based on the gold value and Loan-to-Value (LTV) ratio.
Interest rate: The calculator will use the lender's interest rate for the gold loan.
Tenure (in months): Choose repayment period (up to 36 month)
2. Calculation
Gold value calculation: The calculator determines the value of your gold based on the current gold price per gram and the carat.
Loan amount calculation: It then calculates the eligible loan amount based on the LTV, which is the percentage of the gold's value you can borrow.
EMI calculation: The calculator uses the standard EMI formula (EMI = [P x R x (1+R)^N]/[(1+R)^N-1]) to determine your monthly repayment amount,
where:
P = Loan principal
R = Monthly interest rate
N = Total number of months in the loan tenure
Principal + Interest: The calculator calculates the total amount to be repaid by adding the principal and the total interest over the loan tenure.
EMI: The calculator then divides this total by the number of months to arrive at your monthly EMI.
3. Output
The calculator will display your estimated EMI, total interest payable, and total repayment amount.
Some calculators may also provide a repayment schedule, showing the breakdown of principal and interest payments for each month.
In essence, the gold loan EMI calculator helps you understand your financial obligations before taking out a gold loan by providing a clear picture of your monthly repayments and overall cost.