How To Calculate Gold Loan Interest Rate
Gold loans are secured loans provided against gold jewellery or ornaments. It is essential to compare gold loan interest rates from different lenders to opt for the most affordable one. Bajaj Finance offers one of the most affordable gold loan rates in the market, along with borrower-friendly terms and conditions. Consider knowing how to calculate gold loan interest when applying for a gold loan from your preferred lender.
Here is a look at how you can check the interest applicable on gold loans.
The lender's prerogative is computing the interest rate and is based on factors like inflation and gold’s market rate. Take a look at how you can check interest rates applicable on gold loans and calculate gold loan interest accordingly.
How to check gold loan interest
Checking the gold loan interest applicable is simple and quick and requires you to follow only a few steps.
- Visit the official website of Bajaj Finserv
- Navigate to the gold loan page
- Select ' Fees and Charges' from the different tabs available at the top
- Give a detailed scan to the page to check the interest rate and other applicable fees and charges
Alternatively, visit the nearest branch of Bajaj Finserv to verify and confirm the applicable gold loan rate.
Below is a detailed guide on calculating gold loan interest with the help of a dedicated financial tool like a gold loan calculator. Note that the total interest payable can also be arrived at if you deduct the loan principal availed from the total loan liability payable. Follow the steps given below for a quick calculation of the interest payable.
Step 1: Go to the gold loan EMI calculator page of Bajaj Finserv.
Step 2: On the gold loan calculator page, enter either of the two values, ‘Gold to be pledged (in grams)’ or ‘Required loan amount.’ Entering one of the values will automatically represent the other based on the per gram eligibility for the day.
So, if you pledge 60 grams of gold and the value per gram for the day is Rs. 3,311, the total loan amount available can be up to Rs. 1,98,660.
Step 3: Next, choose a suitable frequency of interest repayment from the available options, which are ‘monthly,’ ‘bi-monthly,’ ‘quarterly,’ ‘half-yearly,’ and ‘annually.’ Select either of them as per your suitability.
Step 4: Enter the interest rate levied by your selected lender to arrive at the total amount of interest payable.
You can also check your gold loan eligibility per gram based on the gold to be pledged with the help of an eligibility calculator.
Minimum interest rate on gold loan
With Bajaj Finserv, you can get a gold loan with interest rate starting from 9.5% p.a. onwards. Interest accumulates at a flat rate, and no hidden charges are applicable.
Maximum interest rate on gold loan
The maximum interest rate on gold loans varies from one period to another and is usually regulated by the running inflation and gold’s market price. A borrower’s associated eligibility for the advance determines the applicable interest rate between the minimum and maximum rates.
