Gold Loan Calculator takes away your worries of paying debt

Investing in gold has been prevalent since ages and deemed to be the best option over other investments. It provides assistance to the family at the time of financial crisis, because gold loans can easily be availed by pledging the gold. India is one of the largest importers of gold in the entire world, and is also known for their love towards gold. In Indian festivals it is a ritual to purchase gold as it brings prosperity in the family, like in Dhanteras, Makar Sankranti, Gudi Padwa, Akshay Tritiya. This age-old tradition of buying gold is still considered pious by most households.  If someone faces an urgent financial disaster, this asset can generate him cash with minimum obstacles and formalities. 

When a person chooses to get a gold loan the market value of the gold pledged is calculated according to the power per gram market rate of gold on the day of loan application. The stones and gems in the jewellery are excluded from the calculation. Generally the maximum loan that a person can avail is 75% of the market value of the gold in the ornaments depending on its quality. Generally the maximum and amount eligible for an applicant of gold loan ranges from Rs 1000 to Rs 2 crores, where loan per gram is around Rs 2748 to Rs 3359. The people who are eligible to get a gold loan can be within the age of 18 to 75 years.

 Gold Loan per gram based on total weight of ornament, level of the gold purity, past one month average price of 22 carat gold and LTV ratio applied by banks, is calculated by the Gold Loan Calculator. The EMI is composed of both the principal amount of gold loan and the interest component attached to it. EMI Gold Loan Calculator helps to calculate the monthly EMI at the rate of interest and repayment time thereby minimising all the worries of paying debts. EMI depends upon the loan amount which will get higher if the loan amount rises; the higher rate of interest will increase the amount of EMI, and if the loan tenure is high the EMI gets lower.  Though the minimum age for applying for a bank gold loan is 18 years, many banks require the minimum age to be 21 or 23. 

The employment type of the applicant is also another factor to get the gold loan. Salaried employees, self employed, businessman, housewife, senior citizens all are allowed to fetch a gold loan. To meet the working capital requirement, businessmen also get a gold loan as the rates of interest are comparatively low. Homemakers and senior citizens with no income proof and credit score can easily get the benefits of a gold loan by most Banks like Axis Bank gold loan, ICICI Bank Gold Loan, SBI Gold Loan, HDFC Gold Loan.

The ornaments that are to be pledged with the bank must be within 18 to 24 carats of pure gold. So, the price of a 22 carat gold ornament can be estimated by multiplying the price of a 22 carat gold ornament by a factor of 20/22. The CIBIL score for granting a gold loan is hardly checked but the repayment track record of the debtor may be instrumental in the CIBIL score. Even job stability or business stability is also not a factor for sanctioning a gold loan. KYC documents such as address and identity proof and the gold to be pledged is enough for availing a gold loan.

 Some most significant things from a customer's standpoint are clarity, security and choice of loan product to suit their requirements. There should be no hidden cost that may lead to extra burden on the debtor. The internal system and strategies of the company which assures no malafide activities against the gold pledged, should be transparent to the debtor. The choice of loan scheme must cover the range from high LTV to low LTV with appropriate variations in interest rates.

Read More:- When should you opt for a gold loan?