The common man is not unknown to the concept of loans. There are different types of loans, Car loans, Home loans, Gold loans, the list goes on. When loans are issued generally, the word EMI is associated with it. EMI stands for Equated Monthly Installments. In this method, the borrower is expected to return the borrowed sum as instalments within the fixed number of months decided in the agreement. A lot of people take advantage of this service, that is because it gives the consumer plenty of time to arrange for funds that are required to pay the lender. If the consumer wants an estimate of the EMI amount that they have to pay, they can go to the website provided by the lender and enter their loan amount in the calculator provided.
Loans are of two types Secured & Unsecured. Secured loans are those kinds of loans that require collateral. Unsecured loans are the complete opposite, unlike secured loans, they do not need collateral as a sense of security. Collaterals can be shares or jewellery pledged to the lender by the borrower. Such a type of exchange takes place in banks and other reputed non-banking organisations. Here the collaterals act as a sense of security and something the lender can hold against the client. When a client issues a loan while keeping gold as collateral, the bank makes this offer for only a short time limit. The consumer gets to cross-check with the help of the EMI calculator before investing in the gold loan they’re looking into. In this article, we are going to discuss the benefits of using a Gold loan EMI calculator.
Benefits of using an EMI calculator for a Gold loan
People who decide to take out loans often rely on collateral. Gold is a common form of collateral. However, people are also afraid of losing their gold. Using a Gold loan EMI calculator helps with a detailed overview of the monthly payments that they need to make, without having to lose the proposed gold ornament.
No room for errors
Using EMI calculators leaves behind zero room for miscalculations. The EMI calculator is an automatic tool incorporated within the lender’s website, whether it is the banks or non-banking financial organisations. It is also beneficial if the consumer is not familiar with such complex calculations manually.
Any consumer can easily use the EMI calculators available online. It is accessible to anyone who wants to check their monthly EMI amount. The consumer only has to put in the details of their loan amount and after that, the automated tool will display the final result. The consumer can proceed to alter the inputs till they receive the results they are comfortable with.
Online EMI calculators are helpfull due to the tedious nature of manually calculating EMIs and the potential for incorrect results. The result achieved is faster and more accurate as compared to the one done manually.
Helps with accurate planning
The EMI calculator saves a tremendous amount of both time and money. The calculator saves time by being quick and efficient in results.
Required steps for calculating gold loan EMI
Check out the following steps on how to calculate gold loan EMI. The steps that are involved in this process are easy and fast.
- Visit the website provided by the lending party.
- Search for EMI calculator
- Enter the following details
- The principal loan amount for the Gold Loan
- The tenure that is intended by the lender
- The rate of interest provided by the lender.
- The net weight of the gold articles in question
- They also inquire about the payment mode.
- Click enter and wait for the desired result
Pro tip: The customer can change the above-mentioned points to their liking until they find something they are comfortable with.
Documents Required for Gold Loan Approval
Given below is the list of the documents, that you require to get a gold loan application approved in real-time:
- KYC documents that include your Identification and Address Proof (PAN card, Voter ID, Aadhar Card, Passport, Electricity bill or Water bill)
- Proven ownership of the pledged gold articles (original invoice)
- Bank statement of the past 12 months
- An application form with all the necessary details and 2 passport size photos.
- Any other documents that the lender asks to fill in.
Hopefully, the above-written article helped you understand the benefits of gold loan EMI calculators and the process involved in calculating the EMI amount, a little better. The customers indulge in such type of loan while pledging their self-owned gold. To avoid losing their gold, which is kept as collateral, an EMI calculator turns out to be of great help, enabling the applicant to make smart and important decisions all the while.
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