When you are planning to borrow gold, your mind normally wanders in terms of the amount of money you can obtain. However, one also wonders another crucial question, which is not frequently addressed, and that is how much you are going to repay.
It is in this situation that a gold loan calculator comes in very handy. You can also work out the cost of gold loans by yourself and see the entire picture of repayment, rather than guessing what the lender is telling you or just listening to what he says.
In layman’s terms, it is a financial preview tool. And with proper use, it can save you the needless stress of repayment.
What Is a Gold Loan Calculator?
A gold loan calculator is an online application that assists the borrower to calculate gold loan. It also helps in determining the loan repayment information by estimating three key inputs:
- Loan amount
- Interest on gold loan
- Repayment tenure
After typing in these details, the calculator immediately displays:
- Monthly EMI
- Total interest payable
- Total repayment amount
Most lenders have made this calculator available on their site or platform, whether you are applying via a bank or via a gold loan app, to enable customers to make informed decisions.
Guide To A Gold Loan Calculator:
It is easy to use a gold loan calculator. Here is the way you can do it:
Step 1: Enter The Loan Amount – Begin by typing in the amount you are intending to borrow. Ideally, do not simply key in the maximum amount that can be claimed. Rather, estimate what you really require.
Step 2: Add The Interest Rate – Type in the interest rate of the gold loan that the lender is providing. When comparing two or more lenders or gold loan applications, repeat the procedure with each rate to determine the repayment change.
Step 3: Select The Tenure – Select repayment period- e.g., 3 months, 6 months or 12 months. The shorter tenures tend to decrease the overall interest but raise the size of EMI.
Step 4: Review The Results – Your EMI and the total interest amount to be paid will be displayed immediately in the calculator. This will assist you in checking on affordability.
It only takes you few minutes and provides you with useful financial knowledge.
Advantages of a Gold Loan Calculator.
Reasons why seasoned borrowers never fail to use this tool:
- Prevents over-borrowing
- Enhances the accuracy of budgeting
- Helps compare various lenders
- Gathers confidence prior to application
- Minimizes financial surprises in the future
A gold loan can be readily available; however, it does not imply that you can afford not to plan your finances. Using the gold loan calculator is a practice before the actual commitment. It presents the numbers in a plain way, no guesses, no revelations.
Calculate the situation of gold loan repayment, compare the interest charged on gold loans by various lenders, before you apply for a gold loan, take a moment to calculate the scenario and select the structure that is comfortable with your cash flow. Because smart borrowing is not about how fast you can obtain money, it is about how sure you will pay them back.