A gold loan is a secured loan that various banks offer against the gold you give them in case of jewelry or cash. There are multiple ornaments and security that the lenders offer against the gold that you give to them. However, many factors affect the approval of gold loans, like the purity, value, and fluctuation of gold in the market. You can calculate your gold loan using the EMI calculator.
The gold loan that is offered with gold ornaments is usually short to medium term of duration. There are a lot of financial institutions that offer gold loans by keeping the gold owned by the borrower as collateral.
What is the gold loan EMI calculator?
The gold loan EMI calculator is an online tool that anyone can use to understand the interest rate and calculate EMI for the gold loan that you can avail against self-owned gold. Gold loan EMI calculator helps calculate the EMI that you need to pay monthly to the lender. Lenders can offer various interest rates and repayment tenures, but it also depends on the purity and weight of the gold you are offering in exchange. If you want a reasonable gold loan interest rate, then you can calculate it using an EMI calculator.
Why do people prefer gold loans?
People usually prefer a gold loan when there are some financial requirements or emergencies that they need to fulfill. There are various reasons to apply for a gold loan:
- Instant loan disbursals
- It has minimal documentation and is hassle-free
- Different financial institutions do more payment charges on the gold loan
- There are flexible tenure that varies from days to months
- There is a low-interest rate as compared to other types of loan
There are two things that are the highlights of the gold loan, and you need to take care of them, which are as follows:
You need to be eligible in order to get the gold loan. There are some eligibility criteria that you need to meet to get approval for your gold loan. You should be 18 years old or above.
● Interest rate:
There are a lot of banks that offer gold loan interest rates at very competitive prices. You can choose the interest rate, which has affordable EMIs and various repayment options to choose from.
Documents required to apply for a gold loan:
- You need to fill the application with two recent passport-sized photographs.
- The KYC documents of the applicant should be complete with a passport, Aadhar card, driving license, PAN card and utility bills.
- Proof that you own the gold
- Bank statements from the last 12 months
- Any other type of document that the lender needs in order to process your application
If you want the best gold loan interest rate, then you can check it using the EMI calculator, and it will also help you understand the loan amount that you need to pay every month. It is an easy loan to get, so make sure you have all the documents ready and that your gold is pure and valuable to get a good amount for it.