Gold Loan Calculator India 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
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 |
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| Employment Type |
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| Quality of Gold |
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| CIBIL Score |
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| Gold ornaments that can be used for availing loan |
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| 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
- 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.
- 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.
