How to Calculate the Exact Gold Loan Interest per Gram

A gold loan per gram calculator is a tool that calculates the value of your gold and the amount of loan you may receive against it depending on the value of the pledged gold. The lender must retain the applicants’ gold or gold jewelry as collateral or security until the loan is fully repaid.

A gold loan calculator helps determine the loan amount you can raise for a specific quantity of gold.

The per-gram rate of gold represents the value you can get for 1 gram of gold you pledge. This rate, however, can be a culmination of a few factors, like the weight and purity of a gold item. Along with that, a financier also factors in the average price of gold of certain quality over the past 30 days before deciding the per gram rate.

Calculating the loan amount using the per gram rate is very simple. For instance, you have 10 grams of 22-carat gold ornaments, and the per gram rate is Rs. 4000. In that case, the total market value of these gold items is Rs. 40,000. You can get a loan of up to Rs. 30,000 (75% of the total market value) against it.

Therefore, you can refer to current gold loan rates to easily find the loan amount manually. Alternatively, you can use an online calculator for this purpose.

Alongside purity, weight, and average price, the per gram rate of gold also depends on a few other factors. The gold prices across different states and cities of India may fluctuate due to demand, taxes, and transportation costs. 

Another point to keep in mind while studying the per gram rate is that this rate alters every day, and a group of selected traders in every region is responsible for determining it. They will consider international prices and determine the exact cost of buying or selling gold within India and its different regions.

Now that you understand the gold loan per gram rate, you should learn about the factors that play an active role in determining the gold price in India.

You can determine the gold loan interest by subtracting the principal loan amount from the total outstanding. You can also use a gold loan benefits calculator to learn about the same and how the interest rate alters EMIs and total outstanding amounts.

The gold loan EMI calculator is one of the most beneficial tools borrowers use to calculate their EMI against the plan of a gold loan, a self-owned loan, or gold ornaments.

Gold ornaments can also be kept as collateral security with your lender until your loan repayment is made on time. The online gold loan calculator is also very easy to use. You should be aware of the EMI installments that need to be paid every month.

With the help of a calculator, the applicants can try varied interest rates. The tenor can be repaid, which is offered by top financial institutions.

Here are some of the critical details that an applicant should be aware of while using the loan EMI calculator:

• rate of interest
• principal of a gold loan
• required loan amount of the subscribed
• repayment tenor

After submitting these three essential details, the EMI calculator would instantly calculate EMI installments, which would then need to be paid by us to our lender. Similar information can be used in different EMI calculators, car loans, and home loan calculators. 

For us to use the calculator, we are asked to input the predicted loan tenor, the weight of our ornaments, the specifics of the gold carat, and the number of gold ornaments we hold. We would determine the loan size with a calculator, which would streamline the whole procedure and make it much easier.

The minimum term for a gold loan might vary from one financial institution to another, but most creditors need borrowers to pay back their loans within six months at the very least. Gold loans with a fixed term of 12 months are available from Bajaj Finserv. These loans come with considerable repayment flexibility that may be tailored to the borrower’s financial situation.

What is a gold loan scheme?

A gold loan, or loan against gold, is a secured loan that customers can avail of in lieu of gold ornaments like gold jewelry.

It would help if you now educate yourself on the elements that play an active part in deciding the price of gold in India now that you understand the gold loan per gram rate.