GOLD LOAN ELIGIBILITY CALCULATOR

• Gold weight: Enter or select the weight of the gold you plan to pledge. The higher the weight, the larger the loan amount you can expect.
• Purity of gold: The purity of gold is usually measured in karats ranging from 18K to 24K. Gold of higher purity (closer to 24K) fetches a higher loan amount.
• LTV ratio: The Loan-to-Value ratio determines the percentage of the value of gold that can be sanctioned as a loan. For example, if the LTV ratio is 68% and your gold is valued at ₹ 1,00,000, you can get a loan of up to ₹ 68,000.
• Market rate: The prevailing market rate of gold per gram is factored in. This rate can fluctuate daily based on market conditions. The calculator uses this rate to estimate the value of the gold you are pledging.
• Tenure: Select the loan tenure, that is the period over which you intend to repay the loan e.g. tenure of 6 months or 1 year.

Based on the weight, purity, rate per gram and LTV ratio, here is how you can calculate the total eligible amount:

Eligible Loan Amount: = Weight (gms) x Purity (K) x Rate per gram (Based on respective Karat) x Tenure (t) x LTV Ratio(%)

Gold Loan eligibility criteria determine whether you can secure a loan against your gold loan assets. Here is a detailed explanation of the key factors that affect eligibility.

Ensure that you fulfil the eligibility criteria and have all the necessary documents when you apply for a Gold Loan. This will streamline the loan application process and enhance your chances of securing the loan.

A Gold Loan Calculator is a tool that helps estimate the Loan amount that you can avail by pledging gold as collateral. It considers factors like purity of gold, current market rate and Loan To Value ratio. 

A Gold Loan Calculator offers several benefits:

1. Quick Estimates: It provides a quick estimate of the expected Loan amount, based on the value of your gold.
2. Transparency: It offers transparency by showing you how the Loan amount is calculated, taking factors such as gold purity and the current market rate into consideration.
3. Convenience: It is convenient, allowing you to calculate the potential Loan amount, from the comfort of your home or office.
4. Comparison: You can use it to compare Loan offers from different lenders, by entering their respective interest rates.
5. Planning: It helps in financial planning by giving you a clear idea of how much liquidity can be accessed through your gold assets.

Interest Rate is calculated based on factors like Loan amount, Loan tenure and the lender's interest rate policies. 

1. Loan Amount: The amount you borrow, against the value of your gold.
2. Loan Tenure: The duration for which you borrow the money.
3. Interest Rate: The rate at which the lender charges interest on the Loan amount.

The interest rate can be calculated through either the simple interest method or the compound interest method, depending on the lender's policies.

Calculate the eligible amount using Gold Loan Calculator and use this simple formula to calculate Gold Loan interest:

Interest = (Eligible Amount x Rate of Interest x Tenure)/100.

Here's an example to help you understand how the formula works:

Let's say you are eligible for Rs.3,00,000 for a Gold Loan with an annual interest rate of 10%* for a period of 1 year. To calculate the interest on your Loan, the following formula will be used:

Interest = (3,00,000 x 10 x 1)/100
= 30,00,000/100
= 30,000

So, the total interest payable on your Home Loan over a period of 1 year would be Rs. 30,000.

By using this formula, you can calculate the interest on your Gold Loan and get a clear idea of how much you'll be paying in interest over the loan tenure.