BOB Gold Loan EMI Calculator
Compare with other banks - Gold Loan
| Bank | Interest Rate (%) | Source |
|---|---|---|
| Bank of Baroda (Your selected bank) | 9.90 - 10 | View Details |
| State Bank of India | 9.00 - 10.25 | View Details |
| HDFC Bank | 9.00 - 11.00 | View Details |
| ICICI Bank | 9.10 - 11.10 | View Details |
| Bank of India | 7.65 - 8.90 | View Details |
Gold Loan EMI Calculator
A Gold Loan EMI Calculator helps you estimate your monthly repayment amounts for loans taken against gold jewelry or coins. It calculates your Equated Monthly Installment (EMI) based on the loan amount, interest rate, and tenure you enter.
How Gold Loan EMI Calculator Works
- Enter the loan amount you wish to borrow against your gold
- Input the interest rate offered by the bank
- Select the loan tenure in years
- Get an instant calculation of your monthly EMI
Factors Affecting Gold Loan EMI
- Credit Score: A better credit history can help secure more favorable interest rates
- Income: Your monthly income affects eligibility and repayment capacity
- Gold Value: The current market price and quantity of gold affects loan amount
- Loan Term: Longer terms mean lower EMIs but higher total interest
- Interest Rate: The rate charged by lenders affects your monthly payment
- Gold Purity: Higher purity gold (22-24K) typically qualifies for larger loan amounts
Gold Loan Examples
Example 1: ₹3,00,000 Gold Loan
Loan Amount: ₹3,00,000 Interest Rate: 10.5% per annum Tenure: 2 years (24 months) Monthly EMI: ₹13,935 Total Interest Paid: ₹34,440 Total Amount Paid: ₹3,34,440
Example 2: ₹5,00,000 Gold Loan
Loan Amount: ₹5,00,000 Interest Rate: 9.5% per annum Tenure: 3 years (36 months) Monthly EMI: ₹16,075 Total Interest Paid: ₹78,700 Total Amount Paid: ₹5,78,700
Types of Gold for Loans
Gold Jewelry
Gold jewelry is the most common form of collateral for gold loans. Lenders typically accept necklaces, bangles, earrings, and other gold ornaments with purity of 18-24 karats.
Gold Coins
Gold coins issued by banks and reputable institutions are readily accepted by lenders due to their certified purity (typically 24K) and standardized weight.
Gold Bars/Bullion
Gold bars or bullion with hallmark certification can fetch the highest loan-to-value ratio due to their high purity and ease of valuation.
Traditional Gold Ornaments
Family heirlooms and traditional gold ornaments are accepted by most lenders, though the loan amount may be affected by factors like antiquity and making charges.
Frequently Asked Questions
What is a gold loan?
A gold loan is a secured loan where you pledge your gold assets (jewelry, coins, or bullion) as collateral to get funds from a bank or NBFC. The loan amount is typically 70-80% of the gold's market value.
How is the value of gold determined for a loan?
The value is determined based on the weight of pure gold content, current market price, and the purity of gold (measured in karats). Most lenders use the daily gold rate to calculate the loan value.
What happens if I default on my gold loan?
If you fail to repay the loan as per the agreed terms, the lender has the legal right to auction your pledged gold to recover their dues. Any excess amount after recovering the loan is returned to the borrower.
Can I get a gold loan with a poor credit score?
Yes, since gold loans are secured by physical gold collateral, they are less dependent on credit scores. Even borrowers with poor credit history can usually qualify for gold loans.
Can I make partial prepayments on my gold loan?
Many lenders allow partial prepayments, but policies vary. Some may charge prepayment penalties while others offer flexible repayment options without additional fees.
Tips for Gold Loan Borrowers
- Compare interest rates and LTV ratios across multiple lenders before deciding
- Check if your lender offers interest-only payment options for better flexibility
- Understand the gold valuation process to ensure you get a fair appraisal
- Keep all receipts and documentation related to your pledged gold
- Set up automatic payments to avoid late fees and potential default
- Consider shorter loan tenures to reduce total interest costs