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Gold Loan Calculator India Oct 2017

Last Updated 20th Oct 2017

Gold Loan Per Gram Calculator – SBI, Muthoot, Manappuram, HDFC, Yes Bank, All Banks

Rate of Interest Starting @ 10.50%
Check Best Offers
Lowest EMI per lakh Rs. 3,250
Loan Amount Rs. 1,000 - Rs. 20,000,000
Age 18 years - 75 years
  • Compare and check online to get the lowest interest rate and best loan amount
  • Apply online and easily avail gold loan
  • Banks offer maximum loan of 60 - 75% of the value of the gold
  • Eligibility of gold loan is independent of your CIBIL score and income
  • Gold loan eligibility depends upon the weight and quality of gold ornaments
Gold Loan Eligibility Calculator
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Compare Gold Loan Rates and Eligibility of All Banks

Bank Max Eligible Loan Amount Max Tenure
SBI Gold Loan Rs. 2,000,000 30 months
Muthoot Gold Loan Rs. 10,000,000 36 months
Manappuram Gold Loan Rs. 10,000,000 3 months
HDFC Bank Rs. 5,000,000 24 months
IIFL Rs. 1,000,000 11 months
Yes Bank Rs. 5,000,000 36 months
ICICI Bank Rs. 1,500,000 12 months
Federal Bank Rs. 7,500,000 12 months
Canara Bank Rs. 1,000,000 12 months
Andhra Bank Rs. 20,000,000 12 months
Axis Bank Rs. 2,000,000 36 months
IndusInd Bank Rs. 1,000,000 12 months
PNB Rs. 1,000,000 12 months

Gold Loan Eligibility Check

You may be eligible for gold loan in India from one or more banks if you meet the following eligibility conditions:

Eligibility Criteria

Minimum and Maximum Age 21 Yrs – 65 Yrs
Note: However, many banks require minimum age of 23 years
Loan Amount
  • Up to Rs. 20,000,000. Some banks restrict maximum eligibility to Rs. 20 lakh
  • Interest rates are lower for higher loan amount
Employment Type
  • Salaried and self employed both are eligible
  • Businessmen are increasingly taking gold loans to meet their working capital requirements
  • In fact housewives, senior citizens who are not eligible for other loans because they have no income proofs can easily avail gold loan
Quality of Gold
  • Gold ornaments should range in between 18 to 24 Carats
  • Average gold price of 22 carat gold for the preceding 30 days is adjusted down for purity. So, the price of 20 Carat jewelry can be estimated by multiplying the price of 22 Carat jewelry by a factor of 20/22
CIBIL Score
  • Banks do not check CIBIL score for granting a gold loan
  • However, your repayment track record for a gold loan is counted towards your CIBIL score and hence, can be instrumental in building your CIBIL score
Gold ornaments that can be used for availing loan
  • Gold bars and coins
  • Gold with 24 Carat purity or less than 18 carat purity
Employment track record and income proofs Banks do not check your job stability or business stability to sanction you a gold loan. Gold loans are granted without income proofs. You only need to submit your basic KYC documents such as address proof, identity proof and Aadhaar card to avail this loan.

Gold Loan Eligibility Calculator

Gold loan eligibility is measured in terms of loan per gram of gold or gold loan amount you may get given the value of gold pledged (dependent on price of gold), purity of gold and LTV applied by banks. The price of gold is taken as past 30 days average price of 22 carat gold and loan to value offered by your bank.

ILLUSTRATION 1: Mr. A has 100 gm of gold jewelry He will evaluate gold loan options from multiple banks on the parameters of gold loan amount eligibility as well as interest rates charges on gold loan

Bank X estimates the gold jewelry at 22 carat with a net weight of 75 gm (after deducting the weight of gems and stones). The bank applies a LTV ratio of 70% and offers the loan at an interest rate of 10.50%

Bank Y estimates the purity of gold jewelry at 22 carat with a net weight of 90 gm (after deducting the weight of gems and stones).The bank applies a LTV of 75% and he offers the loan at 26.00%. How do the two gold loan offers compare with each other.

Bank X and Y will take average price of gold of last 30 days to estimate the value of the gold. The average gold rate per 10 gram is Rs. 30,600.

Bank Gold Loan eligibility Interest rate Monthly EMI
Bank X Rs. 147,263 10.50% Rs. 4,786
Bank Y Rs. 189,338 26.00% Rs. 7,629

In case of Bank X, Mr. A is eligible for a lower loan amount of Rs.196,350 for 100 gram of jewelry, but he will pay a lower interest rate and lower EMI on the loan

In case of Bank Y, Mr. A is eligible for a higher loan amount of Rs.210,375 for 100 gram of jewelry, but he will pay a higher interest rate and hence, a higher EMI on the loan.

Whether Mr. A will take a loan from Bank X or Bank Y depends on the loan amount he is looking for. If the loan amount he is eligible to get from Bank X is suitable to meet his requirements, he may opt for lower interest and hence, low EMI loan. If he is looking for higher loan amount eligibility, it might be suit him to take a loan from Bank Y, even when it comes at higher interest rate

EMI Gold Loan Scheme with Bullet Repayment Scheme Comparison

ILLUSTRATION 2: Mr. B wants to take a Gold Loan of Rs. 3 lakh with a tenure of 12 months at an interest rate of 14.5%. He is not sure on how is repayment schedule look like in the case of EMI gold loan scheme and Bullet repayment gold loan scheme. Under the bullet repayment scheme, the borrower has opted for interest only EMIs where he pays monthly EMIs to service his interest expenses and pays the principal component in one go at the end of the loan tenure. Mr. B will end up paying more interest in the bullet repayment scheme, as he is not repaying any principal back to the bank during the loan tenure.

Monthly Payment EMI Scheme (Rs.) Bullet Repayment (Rs.)
Month 1 27,007 3,625
Month 2 27,007 3,625
Month 3 27,007 3,625
Month 4 27,007 3,625
Month 5 27,007 3,625
Month 6 27,007 3,625
Month 7 27,007 3,625
Month 8 27,007 3,625
Month 9 27,007 3,625
Month 10 27,007 3,625
Month 11 27,007 3,625
Month 12 27,007 3,625
Bullet Payment (At end of 12 months) Rs. 300,000
Total Payment Rs. 324,084 Rs. 343,500

Why to opt for a Bullet Repayment Scheme

  • Saves you from the burden of repaying principal every month
  • Suitable for short tenure gold loans of less than 6 months
  • Helps avail flexible repayment schedule where you can choose to pay interest on the loan as monthly EMIs and the principal payment in one installment at the end of the loan tenure. Some banks also offer the flexibility of paying some portion of principal as part of your monthly payments.

Why not to opt for a Bullet Repayment Scheme

  • Banks may offer lower LTV and charge higher rate of interest on bullet repayment loans
  • You end up paying higher interest on your bullet repayment loan as it is not a reducing balance loan. Effective rate of interest is higher in a bullet repayment loan even when the quoted interest rate is same as that of EMI Gold Loan.

Why to opt for EMI Gold Loan

  • EMI option saves you from the burden of repaying whole principal amount at the end of tenure.
  • This repayment option is more suitable for long tenure loans. Though banks and NBFCs offer EMI repayment options on shorter tenure loans as well.
  • These loans can be availed at lower interest rates compared to bullet repayment gold loan.

Why not to opt for EMI Gold loan

  • You carry a monthly burden of repaying your loan which can be difficult to service especially in short duration loans.

FAQs on Gold Loan Eligibility

When should you opt for a Gold Loan?
  • You need the loan extremely urgently for a relatively short period of time.
  • If you want to avoid extensive paper work or have no income proofs to avail a loan. This loan requires only basic KYC documents.
  • If you lack a credit history or have a bad CIBIL score. It does not undergo CIBIL checks.
  • If you possess gold jewellery that you are willing to hypothecate.
  • If you want to reduce you all-inclusive cost of borrowing. Gold Loans typically carry nil processing fees and pre-payment penalty, thus reducing the overall cost of loan.
When and in what circumstances should I not choose a Gold Loan?
  • If you are not comfortable with parting away with your gold jewellery and handover its custody to the bank. Your jewellery is typically kept safe by banks and specialised finance companies such as Muthoot or Manappuram, the only hitch is that you cannot use the jewellery, while it is with the bank.
  • If you are looking for loans of more than 18 months.
  • If you have alternative assets to pledge which may fetch you a lower rate of interest.
 Gold Loan Eligibility Calculator
*Terms and conditions apply. Credit at sole discretion of lender subject to credit appraisal, eligibility check, rates, charges and terms. Information displayed is indicative and from collected from public sources. MyLoanCare is an independent professional service provider and is not related to the government or government bodies or any regulator or any credit information bureau in any way. Information carried at this website is not and should not be construed as an offer or solicitation or invitation to borrow or lend. The Company does not undertake any liability with respect to the correctness of the content, information and calculations. Information is subject to change without notice. By submitting your query or using any tools or calculators, you authorize MyLoanCare to share your information with lender(s), consent for such lender(s) to access your credit information report and contact you regarding your query overriding your number being in National Do Not Call Registry. This is a free service and no charges are payable by the borrower to MyLoanCare. The Company may receive remuneration from lenders for services provided to them.