Are you considering a gold loan to meet your financial needs? Gold loans are an excellent way to leverage the value of your gold jewellery without having to sell them. However, understanding gold loan interest calculation is crucial before you embark on this financial journey.
Here are the 4 things you need to know about calculating gold loan interest rate.
The loan amount
When applying for a gold loan, the loan amount plays a significant role in determining the interest you will pay. The loan amount is determined by evaluating the value of your gold assets. The higher the value of your gold, the higher the loan amount you can expect. It is essential to keep in mind that leading financial institutions provide an LTV of up to 75% of the gold's value as the loan amount.
The interest rate
Gold loans typically offer two types of interest rates: fixed and floating. A fixed interest rate remains constant throughout the loan tenure, providing stability in your monthly repayments. However, a floating interest rate fluctuates with market conditions, which can result in variations in your monthly instalments. Understanding the pros and cons of each type of interest rate will help you choose the most suitable option based on your financial circumstances.
The loan tenure
The gold loan tenure is another crucial factor in gold loan interest calculation. It refers to the duration for which you borrow the funds. Generally, gold loans have shorter tenures compared to other types of loans. The tenure can range from a few months to one year, depending on the lender and your repayment capacity. It is important to consider your financial goals and ability to repay when selecting the loan tenure, as it can influence the overall interest payable.
Gold loan calculator
To simplify the process of estimating the interest and overall repayment amount, most financial institutions provide online gold loan calculators. These calculators consider factors such as the gold loan per gram rate, loan tenure, and repayment schedule to provide you with the interest payable on your loan. By utilising a gold loan calculator, you can plan your finances effectively, ensuring that the loan is affordable and fits within your budget.
How to apply for a gold loan from Bajaj Finance?
You can easily avail of a gold loan from Bajaj Finance if you are an Indian citizen between the ages of 21 and 70 years. You just need have any one of your KYC documents (Aadhaar Card, voter ID card, driving licence, or passport) ready to get of a gold loan.
Follow a few easy steps to get a quick gold loan from Bajaj Finance:
Step 1: Navigate to the Bajaj Finserv Gold Loan page.
Step 2: Select and open the online application form.
Step 3: Fill in the first and last name as it appears on PAN card.
Step 4: Enter the 10-digit mobile number and select the city.
Step 5: Enter the OTP sent to the registered mobile number and submit the application.
Step 6: Set up an appointment at the nearest gold loan branch, from the options displayed, and bring the gold jewellery there in person for evaluation.
