Unsurprisingly, India has been ranked as one of the largest consumers of gold in the world and possesses stock estimated to be a whopping 23,000 tones. Due to tumultuous economic conditions across the globe, gold prices have experienced an uptick in the recent past.
The increase in gold prices also seems to have rubbed off on the gold loan market. It is estimated that the gold loan market in India would be more than 3 lakh crore in 2020.
Those who need funds urgently and happen to own surplus gold can rely on gold loans. Gold is used as collateral while availing a gold loan. Gold loan is an easy way to get cash for gold. It is fast and requires very little paperwork. There are multiple gold loan lenders available in the current market lending loans on different terms and conditions. Choosing the right gold loan scheme can save a lot of your money. Let us look at how you can use a gold loan interest and EMI calculator to select the best scheme available in the market.
Guide to use a gold loan EMI calculator
Not everyone has the skill and knowledge to calculate the gold loan interest and EMI using a paper and a pen. Gold loan interest calculator has made the job of calculating interest and EMI quite simple. All you need to do is fill in the appropriate details and press on calculate to get the results in no time. A gold loan EMI calculator can be used by adopting these five simple steps.
- Compare numerous options
Look for websites which show a direct comparison between interest rates on gold loans offered by multiple gold loan lenders. This will help you shortlist the best out of prolific options available in the market.
- Select the one with the lowest interest rate
Out of all the multiple options that you see in the table, pick the one that best suits your requirements and copy its interest rate in the gold loan interest calculator.
- Select the loan amount
Select the exact gold loan amount that you need to fulfil your financial needs. Opting for more than required might lead to greater interests. Hence, choosing the right gold loan amount is important. Enter the gold loan amount in the gold loan interest calculator.
- Fix the gold loan tenure
Assess your financial capability to repay the loan. Longer gold loan tenure will decrease the equated monthly instalment but increase the overall interest. Hence enter the gold loan tenure only after making a calculated decision.
- Final step
Once you are done filling all the necessary details in the gold loan EMI calculator, click on the calculate button to get the precise value of interest and equated monthly instalment that you are supposed to pay.
Doing this will help you perceive whether or not you will be able to pay equated monthly instalments without overburdening yourself.
How using a gold loan EMI calculator helps you enhance savings?
Using the gold loan EMI and interest calculator wisely can help you increase your savings. There are a few principles which if followed can help you increase your overall savings.
- Gold loan EMI calculator and gold loan interest calculator gives you a lucid idea of how much money you need to spend from your monthly budget for paying the EMIs. This will help you make sure that you are not overburdened by the equated monthly instalment amount.
- Gold loan interest calculators can help you figure out the best gold loan scheme by providing an accurate figure of the interest that you need to pay in each of them. In this way, you can opt for the gold scheme that asks you for the lowest interest hence, increasing your savings.
- Long term loans might help lower the equated monthly instalment value but will increase your overall interest. Hence, use both gold loan EMI calculator and gold loan interest calculator to figure out the best gold loan scheme for you. Look for a gold loan scheme whose equated monthly instalment does not overburden you and is repaid as fast as possible to avoid paying more interest hence, enhancing your overall savings.
