Gold Loan EMI Calculator: Simplifying Your SBI Borrowing Experience

Gold Loan EMI Calculator: Simplifying Your SBI Borrowing Experience

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A gold loan is a form of secured loan in which gold is pledged against gold ornaments or jewellery to meet short-term credit requirements. One can availof an SBI Gold Loan with the help of the YONO app. However, it is mandatory to plan your expenses for the period you are taking a loan from. Also, whether it is a personal loan, home loan, or gold loan, calculating an EMI and making its payment is a challenging task altogether. Here, the SBI Gold Loan Calculator comes into play, which helps determine the EMI on different interest rates, loan amounts, and loan tenures.

Highlights
Maximum Loan Amount INR 50 lakhs
Minimum Loan Amount INR 20,000
Margin
Gold Loan (EMI Based) 25%
3 Months Bullet Repayment Gold Loan 30%
3 Months Bullet Repayment Gold Loan 30%
3 Months Bullet Repayment Gold Loan 35%

How is the SBI Gold Loan Calculator used?

EMI stands for Equated Monthly Installments, which refers to a predetermined fixed amount of payment that borrowers make to lenders on a specific date each month. EMI includes both the principal amount and the interest amount, allowing applicants to pay off their loans gradually over a period of time on a monthly basis.

Step 1: Enter the loan amount to be borrowed from the lender.

Step 2: Select the purity of gold.

Step 3: Provide the interest rate and tenure.

Step 4: Click on the “Calculate” button.

Step 5: The gold loan calculator will then display the amount of EMI within seconds.

EMI = [P x R x (1 + R) ^ N] / [(1+R) ^ N – 1]

Where,

P = Loan amount

R = Monthly interest rate

N = Loan tenure in months

Let us understand it with the help of an example,

Suppose Mr X borrowed INR 1,00,000 at an interest rate of 12% for a period of 12 months. So, using the above formula, the EMI for gold loan will be calculated as mentioned below:

EMI = [1,00,000 x 0.01 x (1 + 0.01) ^ 12] / [(1 + 0.01) ^ 12 – 1]

EMI = INR 8,885.87

The SBI Gold Loan Eligibility Calculator to ascertain the maximum loan amount for which one is required to fill out the below-mentioned details:

  • Number of Gold Ornaments
  • Type of Ornaments – Necklace/ Solid Bangles/ Chain/ Ring/ Gold Coins/ Others
  • Net Weight of Ornaments (in gms)
  • Caratage of Ornament

After filling out the details, two values will be received: the total value of ornaments and the eligible loan amount, which can be received based on the former.

Benefits of Using the SBI Gold Loan Calculator 

Mentioned are the benefits of using a SBI Gold Loan Calculator:

Quick and Easy Calculation:

With the help of a gold loan calculator, it becomes easy to calculate the loan amount pledged against gold jewellery or ornaments. Both the time and effort saved that would have been spent in the case of the manual calculator.

Accuracy in Estimation:

It helps in making an accurate estimate of the maximum loan amount that can be raised against the pledged gold. To get a reliable estimate, it takes into consideration the weight and purity of the gold and the prevailing market value as well.

Comparison of Loan Options:

It can be used to make comparisons between the different loan options available from different lender banks. By providing the same information, one can compare the loan amount, interest rates, and other terms and conditions offered by different lender banks.

Financial Planning:

One can plan their finances better by giving an estimate of the loan amount that can be borrowed against jewellery held as collateral. It helps in making a decision about whether a gold loan should be opted for or not.

Transparency: 

The application process for a gold loan is considered transparent and helps ascertain the factors that most affect the loan amount.

Processing Fees and Charges

Mentioned below are the processing fees and charges that will be applicable when the SBI Gold Loan is applied for:

Particulars Charges
3 Months Bullet Repayment Gold Loan INR 200 + GST
6 Months Bullet Repayment Gold Loan INR 300 + GST
12 Months Bullet Repayment Gold Loan 0.50% of the loan amount (Minimum INR 500; Maximum INR 10,000) + applicable GST
EMI-based Gold Loan 0.50% of the loan amount (Minimum INR 500) + applicable GST
Others The Gold Appraiser charges will be paid by the applicant.

Features of a SBI Gold Loan

Mentioned below are the salient features of a SBI Gold Loan:

Attractive Interest Rates

As gold loans are considered to be secured, they can be availed at a low rate of interest compared to other types of loans.

Loan-to-Value

The maximum Lon-to-value (LTV) Ratio capped by the Reserve Bank of India is 75%.

Low Processing Fees

In the case of gold loans, the same can be raised at very low processing fees

No Foreclosure Charges

Unlike other loans, there are no foreclosure charges or prepayment penalties when the loan amount is paid before the end of the loan tenure.

No Credit Score Requirements

Even applicants with credit scores can apply for a gold loan; as in the case of a gold loan, the loans are pledged with gold or gold ornaments.

Factors Affecting SBI Gold Loan Interest Rate

Mentioned below are the factors that affect the SBI Gold Loan Interest Rate:

Loan Amount:

The higher the loan amount is, the higher the interest rate will be, as lender banks consider larger loans to be more risky.

Loan Tenure:

The longer the loan tenure, the higher the interest rate, as the lender banks consider it to be more risky to be exposed to a larger loan tenure.

Gold Purity:

The higher the purity of gold is, the lower the rate of interest would be, as it is considered to be more valuable and easier to sell.

Condition of Market:

The gold loan calculator helps in understanding various factors that can affect the loan amount by providing transparency. This will further help in making informed decisions.

SBI Gold Loan Customer Care

If you have any queries, grievances, or suggestions, you can contact the below-mentioned numbers:

Toll-free Number 1800-11-2211/080-26599990
SMS Type UNHAPPY and send it to 8008202020

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