Gold Loan Calculator Definition, Features & Benefits

Gold Loan Calculator

In a country like India, gold is considered one of the best things to invest in due to its high appreciation value. Other than this, it is also one of the most liquid assets one can own. Whenever you are in urgent need of funds, you can easily pledge your assets and avail a gold loan within no time. Once the loan is repaid, those assets can be claimed back. Given the huge popularity of this financing option, a number of lending institutions are offering gold loans at the most competitive interest rates. Now the question comes: how do you determine if a particular gold loan is suitable for you or not? The answer to this commonly asked question is by using a gold loan calculator.

A gold loan calculator is a digital tool designed to determine loan eligibility in two ways when the loan amount is known and another to check for loan amount via ornament details.

How It Works

In India, a gold loan calculator helps you gauge the amount you are eligible for against the gold assets you are going to pledge. You have to enter information like the number of gold ornaments with their weight, type, and purity. It uses factors like the current market rate of gold and the average rate of interest rate for calculation.

Benefits of Using a Gold Loan Calculator

By utilizing the gold loan calculator and considering the applicable monthly interest, here are a few major benefits of using an online gold loan calculator:

Quick Calculation
Better Finance Planning
Provides Instant Online Results
Helps to Choose a Suitable Gold Loan Scheme

Features

Here are the key features of online gold loan calculators:

Free and easy to use
Fast, accurate calculations
Option to select the type and purity of ornaments
Flexibility to change the inputs

Comparison of Different Gold Loan Calculators

At Muthoot Finance Loan at Home, using a gold loan calculator there are two different options. Each one of them works in a different way, depending on the type of information you are providing. Using different options of the gold loan calculator you can easily determine the best option for you.

Required Loan Amount

In this gold loan calculator, you can enter the amount you want to avail and choose the purity of the assets you want to avail. It gives you the option of calculating the amount of gold you would need to get the loan amount you require.

Loan through Ornament Details

This gold loan calculator allows you to perform the calculation by using the details of your gold assets, such as weight, purity, etc. Once you enter all the details, it will give you an approximate amount that you can get by pledging those gold ornaments.

In both options, once the application form is submitted, you will get a call to schedule a home visit.

Steps to Use a Gold Loan Calculator

Here are the steps for calculating the eligibility using the Muthoot Finance gold loan calculator:

By Using the Required Loan Amount

Select the ‘Required Loan Amount’ option.
Enter the loan amount and select the purity of the gold ornaments using the purity slider.
Now the net weight of the required gold will be shown in grams.
Click on the ‘Apply for Loan’ button, fill in all the required details in the form, and submit.

By Using Gold Ornament Details

Select the ‘Loan Through Ornament Details’ option.
Enter the details of the gold ornaments that you are going to pledge, such as the type of gold, weight (in grams), purity, etc.
Now the loan amount that you can avail against your gold assets will be shown.
Click on the ‘Apply’ button, fill in the details, and submit.

Limitations of a Gold Loan Calculator

The gold loan calculator helps you calculate the loan amount you can borrow against your gold. This calculation is performed by taking several factors into consideration, such as loan amount, weight and purity of gold, etc. However, like any other digital tool, these calculators also have certain limitations. As a result, the actual sanctioned loan amount or applicable rate of interest can slightly vary. The simple reason behind this is that this estimate is given solely on the basis of gold value, while a loan gets approved after taking several factors into account, like stone weight and active scheme.

The Loan at Home service by Muthoot Finance offers several benefits with a hassle-free and quick gold loan. With our loan-at-home facility, you can also avail a gold loan without having to step out of your house. You can apply online and get your loan sanctioned in no time. Register for a home visit today.

Muthoot Finance – Providing the Best Gold Loans at Home in India