At times, situations arise when there is a need for urgent cash. It might be to take care of some medical bills, plan a marriage or deal with some other financial exigencies. It is at times like this a gold loan might be able to help you out. The surplus gold in your locker that you do not see yourself using in the near foreseeable future can be used as collateral against a gold loan. They are also approved quite fast because of minimal paperwork involved in the procedure. Hence, this might prove to be the best way to quench your financial needs. Lenders allow borrowers to sanction upto 75% of the total value of pledged gold. Using a gold loan interest calculator can help you pick the best out of all the multiple gold loan schemes available in the market. According to a KPMG report published recently, the gold loan market is anticipated to meet Rs.4,617 billion by 2022 with an annual compounded growth rate of 13.4%. The constantly increasing customer base speaks for its reliability. Let us look at some features of the gold loan first.
Features of a gold loan
Gold loans come with a lot of exciting features, making it a righteous option to get urgent cash to cater to financial needs. Some of them have been listed below.
Flexible interest rates
Gold loans come with a flexible rate of interest which may come much lower or at par as compared to personal loans and others. Gold Loan interest rate depends on the amount you avail and tenure of the loan. Different lenders offer a varied scale of the rate of interest. A little bit of research on the lenders that are offering the lowest rate of interest can help you save some bucks. The rate of interest on gold loans can easily be calculated using a gold loan interest calculator. Let us look at how to use a gold loan interest rate calculator. You may look at the variety of Gold Loans offered by Muthoot Fincorp, one of the biggest Gold Loan companies in India to offer flexible interest rates based on your financial need.
Approval of loan irrespective of CIBIL score
CIBIL score or credit score is a three-digit score, ranging from 300-900, assigned to an individual based on his or her last 6 months of financial data. An individual with a good CIBIL score is considered to have financial stability in life and hence are preferred by the loan lender. Personal loans and some other types of loans are pretty strict with the applicant’s CIBIL score and hence are only sanctioned to the one with a good CIBIL score. Gold loans, on the other hand, are sanctioned, even for applicants with a poor CIBIL score since gold is already taken as collateral against the loan for security. In fact, a Gold Loan can help improving your credit score if you keep the payment behavior good.
Gold loans require very little paperwork. Since gold loans are secured loans it does not ask for the individual’s income proof or income tax return statements. The only requirements are some basic proofs of identities. This makes the verification process a lot easier and a lot faster than all other kinds of loans, making it the perfect option to go for when in urgent need of cash.
Guide to use a gold loan interest calculator
Calculating gold loan interests and equated monthly instalments can be quite tricky. But do not worry since that is where a gold loan interest rate calculator swoops in to make your job a lot simpler and easier. Gold loan interest rate calculator programme is uploaded on multiple sites of gold loan lenders and hence can easily be found online. The user simply has to put the right inputs into the calculator to get the exact figure of gold loan interest. Using a gold loan interest calculator is quite easy and can be broken down into five simple steps.
- Compare the rate of interest offered by various lenders
Look for comparison in gold loan interest rates offered by various lenders. You can find a statistical table comparing the interest rates, maximum approved limit, EMI options etc. of different gold loan lenders on websites online.
- Select the gold loan scheme 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.
- Set the gold 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.
- Set the gold loan tenure
Assess your financial capability to repay the loan. Longer gold loan tenure will decrease the equated monthly instalment. Hence enter the gold loan tenure only after making a calculated decision.
- Click on the calculate button
After you are done filling all the required fields of the gold loan interest calculator, click on the calculate button to know the exact amount of interest rate and EMI that you are supposed to pay for the particular gold loan scheme.
This will help you to get a vivid idea of whether or not it will be feasible for you to repay the loan adhering to the terms and conditions of it.