The Importance of EMI Calculator in Getting a Gold Loan
In recent times, gold loans have become one of the most sought-after financing options due to their ease of availability and simple eligibility parameters. Prospective borrowers can receive the needed corpus through a quick disbursal process, making the application process convenient and hassle-free.
However, improper financial planning before making a decision can lead to loan defaulting. You can avoid such situations by using a gold loan calculator to assess your total cost of borrowing. This will help you devise an effective budget plan, allowing you to repay the corpus within the given tenure.
Why Should You Use a Gold Loan EMI Calculator?
You can find a gold loan calculator on the website of various banks and financial institutions. This online tool brings in various benefits, such as:
1. Helps plan repayment
By using an online EMI calculator, you can get insights into your payable EMIs. You can change the repayment option and assess which option suits you the best according to your income and repayment capacity. Additionally, prior knowledge of interest payable and principal amount helps you devise an effective monthly budget plan so that you do not exhaust your finances.
2. Aids in comparison
A gold loan calculator also helps individuals compare loan offers extended by different banks and financial institutions. You can make a conscious decision by comparing your cost of borrowing.
You can consider resorting to Bajaj MARKETS to draw a detailed comparison between different lenders in the market. This is a diversified marketplace housing various banks and financial institutions of the country. You can assess the interest rate and other gold loan terms and conditions on this website before making a borrowing decision.
3. Free to use
This online tool is available for use free of cost across the websites of banks and financial institutions. You can utilise this calculator as many times as you wish without having to make any payments.
4. Instant calculations
The gold loan calculator displays needed results in seconds upon you enter the loan amount or weight of gold. Furthermore, the tool is extremely easy to use, as you just need to enter a few details.
5. Accurate results
Although you may calculate your EMIs manually, it leaves chances of error. This online calculator, on the other hand, displays instant EMI calculations once you enter the correct details. This eliminates chances of error and helps you plan your repayments in a disciplined manner.
How to Use a Gold Loan Calculator?
Using this online tool is extremely simple and convenient. You simply need to follow these steps:
Step 1: Visit the website of your preferred lender and navigate to the gold loan EMI calculator
Step 2: Select the gold loan weight or the loan amount you require
Step 3: Choose your preferred repayment option
Upon entering these details, this calculator will display the interest payable on the principal amount. You can change the repayment option as per your repayment capacity.
Note that the results displayed by this calculator are indicative and can change depending on the valuation of gold items.
Before proceeding, consider knowing the gold loan interest rate and tenure offered by the bank or financial institution. Note that most lenders offer gold loans for a fixed tenure of 12 months. However, you may extend the tenure upon talking with your lender.
What Factors Affect Gold Loan EMI?
Now that you know the importance of a gold loan calculator, it is essential for you to know the factors that affect your loan EMIs. Find about them below:
- Loan amount
This is the total corpus you obtain against your gold items. The loan corpus is directly proportional to your EMIs. In simple terms, the higher the loan amount, the more EMI you will have to pay.
2. Interest rate
This is yet another crucial factor affecting your EMIs. Typically, lenders offer gold loans at a lower rate of interest, which lowers the overall EMI burden of borrowers. However, a higher interest rate increases the interest outgo.
3. Repayment tenure
Apart from the loan amount and interest rate, repayment tenure is the third factor that affects gold loan EMIs. In this regard, a longer tenure increases your overall interest outgo. Thus, you may choose a shorter tenure if you are certain about your finances.
The instant and error-free results of a gold loan calculator is what display the importance of this online tool. Consider assessing the terms and conditions of your preferred lender before making a borrowing decision, as such charges can significantly affect the total cost of borrowing. Remember to choose a lender that performs a transparent physical gold evaluation. This will ensure that you receive the corpus as per the value of your gold items.