Gold Loan EMI Calculator

Since ancient times gold has been considered a valuable commodity and way to safeguard one’s finances. If you plan to avail of a gold loan, use the Money View Gold Loan EMI calculator to help plan your finances.

Your EMI

₹63,338

₹26,00,546

₹76,00,546

Loan Amount
|
10K
|
12.5L
|
25.0L
|
37.5L
|
50.0L
|
62.5L
|
75.0L
|
87.5L
|
1Cr
Rate of Interest
|
7%
|
9%
|
11%
|
13%
|
15%
Tenure
|
1yr
|
5yr
|
10yr
|
15yr
|
20yr

Your EMI

₹63,338

₹26,00,546

₹76,00,546

  • Loan Amount

  • Total interest ₹ 26,00,611.62

EMI Schedule

Year Opening Balance Interest Principal Closing Balance
2021 ₹ 50,00,000 ₹ 3,30,399 ₹ 2,39,637 ₹ 47,60,363
2022 ₹ 47,60,363 ₹ 4,14,405 ₹ 3,45,645 ₹ 44,14,718
2023 ₹ 44,14,718 ₹ 3,81,980 ₹ 3,78,067 ₹ 40,36,651
2024 ₹ 40,36,651 ₹ 3,46,517 ₹ 4,13,534 ₹ 36,23,117
2025 ₹ 36,23,117 ₹ 3,07,725 ₹ 4,52,326 ₹ 31,70,791
2026 ₹ 31,70,791 ₹ 2,65,291 ₹ 4,94,756 ₹ 26,76,035
2027 ₹ 26,76,035 ₹ 2,18,881 ₹ 5,41,169 ₹ 21,34,866
2028 ₹ 21,34,866 ₹ 1,68,115 ₹ 5,91,935 ₹ 15,42,931
2029 ₹ 15,42,931 ₹ 1,12,587 ₹ 6,47,462 ₹ 8,95,469
2030 ₹ 8,95,469 ₹ 51,852 ₹ 7,08,197 ₹ 1,87,272
2031 ₹ 1,87,272 ₹ 2,817 ₹ 1,87,195 ₹0.00

How does the Money View Gold Loan EMI Calculator Work?

Our gold loan interest rate calculator has been designed to provide users with a hassle-free experience. All you need to do is follow the steps given below-

  •     • Enter the loan amount that you wish to borrow

  •     • Enter the interest rate charged

  •     • Lastly, add in the repayment tenure

And that’s it! Our gold loan calculator will display the EMI that you need to pay.

Using the gold loan EMI calculator will not only give you the right answer without any mistakes but will also help you plan out your finances better.

Gold Loan EMI Calculation Formula

The formula for calculating gold loan EMI is as follows:

P x R x (1+R)N / [(1+R)N-1]

Where,

    • P stands for Principal Amount that is borrowed.

    • R stands for Rate of interest imposed.

    • N stands for Number or tenure in number of months.

For example, if Rs. 1,00,000 is the amount borrowed (P), 12% is the rate of interest imposed (R), and the 60 months is the tenure (n), the EMI to be paid using the above formula will be:

1,00,000 x 0.01 x (1+0.01)60 / [(1+0.01)60-1] = Rs.2,224 (per month)

The rate of interest (R) is calculated monthly i.e. it is calculated as (Annual Rate of interest/12/100) in this case (12/12/100 = 0.01)

Gold Loan Amortization Schedule

Knowing the impact of your EMI payments on your principal and interest amount is important. The schedule of your loan payments and the change in balance is referred to as the amortization schedule.

For eg. in the case mentioned above, for a principal amount of Rs.1,00,000 with interest rate and repayment tenure being 7% and 5 years respectively, the EMI amount based on the formula is Rs. 26,688 per year or Rs. 2,224 per month. This EMI amount over time results in a reduced principal and interest amount being paid every year until the loan is fully repaid. The table below illustrates the amortization schedule of this loan in detail.

Year EMI Paid for Each Year (Principal + Interest) Closing Balance
Interest Repaid Principal Repaid
₹9,434.05
₹12,810.40
₹1,11,222.29
₹9,539.64
₹71,753.72
₹84,529.01
₹7,364.12
₹19,329.24
₹57,835.73
₹4,912.67
₹21,780.64
₹31,142.45
₹32,150.35
₹24,542.98
₹4,449.17
₹65.85
₹4,383.03
₹0.00

Factors Affecting Gold Loan Interest Rates

Unlike other loans such as car loans or home loans, the factors affecting gold loan interest rates are slightly different. Take a look at these below -

  •     • Price of Gold

The rate of gold is determined by a multitude of factors. These include inflation, demand-supply chain, and festivals (this is especially important in a country like India where the purchase of gold is linked to festivals and other celebrations). Other determinants include procurement of gold by the government as well as global movement or activity in gold prices.

  •     • Loan Amount

The amount of loan you wish to procure will be determined by the amount of gold you are willing to pledge and this, in turn, has an impact on the interest rate charged. The loan amount provided can range anywhere between 65% to 80% or even above the overall value of the gold. The higher the loan amount availed, the higher is the rate of interest as the risk is higher for the lender.

  •     • Repayment Term

As is the case with other loans, the longer the repayment period, the higher is the interest rate. A longer repayment period will reduce the EMI to be paid every month but also spells more of a risk for the lender. However, gold loans generally come with shorter repayment tenures ranging from a few months to about 5-6 years.

  •     • Valuation and Benchmarking Methods Used By Lenders

There are a number of banks and other financial institutions in the market today that provide gold loans to customers. Currently, two main types of benchmarking methods are used to decide the interest rate - Repo Rate Linked Lending Rate (External) and MCLR Linked Lending Rate (Internal). Based on which method is being used, the interest rate will vary.

  •     • Credit Score

Credit scores are an important determinant of an individual’s creditworthiness. Those with high credit scores are deemed to be less risky when it comes to repayments and can generally avail of a loan at lower interest rates. Having a credit score of above 700 (CIBIL or Experian) is therefore recommended.

Gold Loan EMI Frequently Asked Questions (FAQ)

A secured loan that is provided against the collateral of gold (jewelry, coins, bars), these loans are popular as they have a short to medium repayment term and relatively lower interest rates as compared to unsecured loans.

A number of banks and other financial institutions today provide gold loans to customers at competitive rates.

EMI or Equated Monthly Installment is a periodic payment (every month) made by the borrower to the lender in order to repay a loan. The amount paid as EMI will depend on the amount availed, the interest rate charged, as well as repayment term chosen.

Gold has always been a popular asset and now individuals can also avail loans against the gold that they possess. The advantages of gold loans are -

  •     • As gold loans are secured loans, the interest rate is on the lower side as compared to unsecured loans
  •     • The repayment term is quite flexible and short and ranges from a few months to a few years
  •     • Thanks to online loans, applicants now avail gold loans quickly and with minimal documentation
  •       • Most banks and other NBFCs do not require prepayment charges. However, this varies from one bank to another and customers must check for this in advance

Any Indian citizen between the ages of 18 to 70 who owns gold (jewelry, bars, coins) can avail of gold loans. However as the eligibility criteria vary from one financial institution to another, applicants must ensure that they check for this in advance.

Some of the important factors that impact the interest rates charged on gold loans are -

  •     • Price of gold
  •     • Benchmarking methods used by lenders
  •     • Credit score
  •     • Loan amount
  •     • Repayment term