Gold Loan EMI Calculator

A gold loan EMI calculator is an online tool that allows users to find out the exact EMI that must be paid towards gold loan repayment. It is a convenient financial calculator that makes complex EMI calculations simple and quick. It takes into account all the intricate information, such as the principal amount, interest rate and loan tenure, to arrive at the EMI figure.

Thus, even before you opt for a loan, you can find out how much you will pay each month towards the EMI. It is an excellent way to prepare for future payments and plan the finances accordingly.

The Tata AIG gold loan interest rate calculator is built on the basis of a mathematical formula. It allows you to find the equated monthly instalments (EMI) to be paid when availing of a gold loan. It consists of a few essential parameters that assist in accurate calculation. Here is how it works:

Principal Amount: The primary parameter used by the calculator is the principal amount. It is the amount of loan that you get by pledging your gold. The loan amount depends on the value of the gold that you pledge. In most cases, financial institutions lend 75% of the gold value as a loan.

Interest Rate: The calculator also takes into consideration the interest rate, which is a percentage levied by the lending institution as charges for providing you with the loan.

Loan Tenure: It is the period or the number of years for which you have taken the loan. Your EMI is based on the number of years for which the loan is taken.

Taking into consideration the above three parameters, the gold loan EMI calculator provides you with an exact EMI amount that you must pay towards each loan repayment.

The gold loan interest rate calculator uses the following formula to calculate the EMI.

EMI= PR(1+R)^n(1+R)^n-1

P = loan amount

N = number of years/tenure

R = rate of interest

Here is a simple example of a gold loan to help you understand the formula and its calculation.

Example: Lata takes a gold loan of ₹2,00,000 from a lending institution. The rate of interest is 9.75%, while the tenure of the loan is 36 months or 3 years.

Here,

Principal = ₹2,00,000

N = 36 months

R = 9.75%

Thus,

Interest payable = ₹31,483

Total amount payable = ₹2,31,483 (Interest + principal)

EMI = ₹6430

Here is the amortisation table to help you understand what the repayment schedule will look like.

Month	Principal (₹)	Interest (₹)	EMI (₹)	Balance (₹)
1	4805	1625	6430	1,95,195
2	4844	1586	6430	1,90,351
3	4883	1547	6430	1,85,468
4	4923	1507	6430	1,80,545
5	4963	1467	6430	1,75,582
6	5003	1427	6430	1,70,578
7	5044	1386	6430	1,65,534
8	5085	1345	6430	1,60,449
9	5126	1304	6430	1,55,323
10	5168	1262	6430	1,50,155
11	5210	1220	6430	1,44,945
12	5252	1178	6430	1,39,693

From the above table, we can understand that initially, a larger portion of the EMI comprises the interest component. However, as time passes, the EMI contributes more towards the principal and less towards the interest.

TATA AIG calculator is a simple yet efficient tool that allows you to calculate the EMI for gold loans in a few steps. Here is how to use the calculator for your benefit.

Access the Calculator Page: Begin by navigating to the TATA AIG official website and accessing the calculator tool. You will be able to see various calculator fields on the page, such as loan amount, tenure, rate interest, etc.

Fill out the Loan Amount: The next step is to enter the loan amount that you have availed. The loan amount is also called the principal amount. It is a crucial figure as the EMI and interest values are dependent on it.

Enter the Interest Rate: The next field you must fill out is the interest rate charged by the lender on the gold loan. It is an additional sum that you must pay to get the loan. The interest rates may vary from one lender to another.

Specify the Loan Tenure: Next, you must also provide the tenure in months or years for which you have taken the loan. Usually, the gold loan tenure may vary from a few months to a few years.

Click on Calculate: Once you have filled out all the fields on the calculator, you must click on the ‘calculate’ or ‘submit’ button. It will provide you with the accurate EMI amount to be paid to repay the gold loan.

Accuracy

The TATA AIG gold loan calculator is an efficient tool that provides accurate answers as it is based on the mathematical formula. Since there is no manual calculation involved, you can rest assured that the chances of error are eliminated.

Friendly Interface

The calculator also boasts a very simple interface, which all individuals can use. There are no complex steps or methods. All you have to do is fill out the required fields with the correct information, and you are good to go.

Enables Comparison

You can also utilise the calculator to do multiple calculations and compare results. The calculator allows you to find out EMI for different rates of interest and loan amounts. Thus, you can compare the gold loan from multiple lenders and choose the most cost-effective option.

Free and Accessible Anytime

You can access the TATA AIG gold loan calculator online for free at any time. This convenience allows you to explore your options from home or on the go without any pressure. The calculator is readily available and helps you if you are just starting to consider a gold loan or need to finalise details.

Enables Financial Planning

By using the calculator, you can find out the EMI amount that you will have to pay in the future towards loan repayment. This enables you to manage your finances and set aside money, enabling you to pay your EMIs without defaulting.

Saves Time and Effort

The EMI calculation for gold loans is based on a complex mathematical expression. Carrying out the calculation manually is a tough and time-consuming task. However, the calculator automatically carries out the calculation in a quick manner, saving you time and effort.

Value of Gold: The foremost thing that you must know and consider is the value of the gold that you want to pledge. The loan amount is dependent on the value of gold and its purity. Most lenders offer you a loan amount equivalent to 75% of the gold value. For instance, if your gold value is 1,00,000, the lender will provide you with a loan of 75,000 against the gold.

Interest Rate: The interest rate for gold loans varies across lenders. Some lenders may provide gold loans at a lower interest rate, while others may charge a higher interest rate depending on their terms. Thus, you must conduct thorough research and choose a lender with a cost-effective interest rate.

Choose a Reliable Lender: The market is full of institutions claiming to offer low-cost gold loans. While some may be genuine, you must be aware of scams and look for a credible lender with a positive lending history. It is best to choose banks and other non-banking institutions with a good reputation.

Loan Tenure: The loan tenure directly affects the EMI and total repayment amount. A longer loan tenure may reduce the EMI amount, but it increases the interest amount drastically. Similarly, a shorter loan tenure may lead to higher EMI payments, but it allows you to save on interest.

Ignoring Processing Fees and Hidden Charges

Some borrowers overlook processing fees and hidden charges. Always check for additional costs that lenders may impose. These fees can affect your overall loan cost and monthly repayments.

Overestimating the Gold Value or Market Price

Borrowers mostly overestimate the current market price of gold. Stay updated on market trends to ensure accurate estimates. Using inflated values can lead to unrealistic expectations regarding the loan amount.

Not Factoring in Variations in Lender Interest Rates

Different lenders offer different interest rates for gold loans. Failing to consider these variations can skew your calculations. Always compare rates from multiple lenders to find the best option.

Neglecting Loan Tenure Implications

Some users ignore how loan tenure affects their repayments. A longer tenure may reduce monthly EMIs but increase the total interest paid. Consider your financial situation when choosing a tenure. Use a gold loan calculator and check the EMI by entering different tenures.

Entering the Wrong Loan Amount

Entering the wrong loan amount can mess up the entire EMI and interest calculation, as the loan amount is the principal value on which the calculation depends. To get accurate answers, you must provide the correct loan amount, which is based on the gold’s value.

Using the TATA AIG gold loan EMI calculator is a simple and quick process. Just by entering a few essential details, you can find out your future EMI payment amount. Thus, it assists you to plan your finances well and assess whether you have the financial capacity to accommodate the additional payment.

The calculator also enables you to compare EMI, interest amount and interest rates offered by different lenders and choose the best out of all. Most importantly, the TATA AIG calculator saves you precious time and effort as all the calculation is automated.

So, if you are planning to take a gold loan, make the most of our gold loan calculator and find out your EMI payment.

• FD Calculator

• RD Calculator

• SIP calculator

• Gratuity Calculator

• Interest Calculator