Muthoot Finance Gold Loan Calculator
Gold loans are one of the most famous lending products available in India. The gold loan market has seen massive growth over the past couple of years alone, and rising prices may only see further growth in the sector. With major players like Muthoot finance in conventional gold loan space and IndiaGold in online gold loan space, the sector is evolving very quickly.
With the sector’s growth, supplementary tools that make the life of borrowers easy are also seeing a massive uptick in usability. Tools such as Muthoot finance EMI calculator have proven to be extremely useful when considering the number of people actively leveraging the tool to check repayments and feasibility of a gold loan.
What is the Muthoot Gold Loan Calculator?
The gold loan calculator tool is designed in such a way that with basic information about the gold loan such as, principal amount, tenure, and the interest rate - The user can easily calculate the repayment i.e. EMI amount in a matter of seconds. This function promotes active self assessment by the borrowers, which aids in better financial planning and responsible borrowing by the customers.
Why Use It?
- Saves time : Using a gold loan calculator helps save time which the borrower may spend while doing self assessment. Due to the tool’s versatility, the calculations are done on a real time basis, which promotes more efficient self assessment by the borrowers.
- Offers accurate estimates : Gold loan calculators are extremely accurate, estimates on what the repayments would look like. The only condition being the fact that the borrower is punching in accurate estimates about the tenure, principal, and interest rate in the calculator.
- Helps in comparing loan schemes : One of the best use case scenarios of a gold loan calculator is that it can be used to compare gold loan offerings by multiple lenders, which aids in making efficient decisions and helps the borrower in securing affordable yet best suited loans.
How to Use It – Step-by-Step
- Input gold weight & principal amount : The first and foremost step in using a gold loan emi calculator is to input the principal amount that you’re planning to avail from the lender. This amount should be inline with the lender’s loan to value (LTV), as interest and repayments are calculated based on the principal amount.
- Input interest rate : Interest rate is mostly different for every lender. You may want to punch in the interest rate quote given by the lender to ensure accurate calculator results. Interest rate is one of the key determinants of the EMI amount and is usually the top priority for the borrowers while assessing gold loan offers. Lenders like Indiagold offer interest rates starting at just 0.75%* per month!
- Select tenure : Upon selecting tenure, the gold loan calculator will give you accurate results regarding the payable monthly EMI and total cost of loan. Selecting tenure is an essential step in understanding the total cost of loan and if taking a gold loan aligns with your cost of loan target.
- View results : Upon punching in the relevant information, results regarding the gold loan calculation are displayed accurately.
Factors Affecting Loan Estimates
- Gold purity : Gold purity is one of the most important determinants affecting loan estimates, the underlying value of the collateral is higher for gold with higher purity, and vice versa. Furthermore, not all lenders accept low purity gold as collaterals, hence the purity has a major impact on how much loan can be availed and its intrinsic calculation.
- Market rate : Market rate of gold is directly proportional to the amount that can be disbursed as a loan against gold. A higher market rate enables the lenders to lend more and vice versa. Which essentially leads to a bigger impact in the loan estimates.
- LTV ratio : LTV ratio essentially means the gold loan per gram that can be availed by the borrower. It is discretionary to the lenders as per their lending policies and risk exposure. However, the Reserve Bank of India has put a ceiling at 75% which means not more than 75% of the value of gold can be given as a loan to the borrower. Hence, a lender’s policy regarding LTV impacts the loan that can be availed and essentially the loan estimates too.
- Loan Tenure : Tenure has a big influence on the total cost of borrowing and EMIs, especially in the case where the repayment type is reducing EMIs. Hence, it is essential to be cognizant of the tenure as it can substantially affect your cost of borrowing and can impact the loan estimates.
Tips for Better Loan Offers
- Use high-purity gold : Gold loans is a collateral secured type of loan. High purity gold has a higher market value which decreases the risk exposure of the lender thus allowing them to give favourable loan terms to the lenders in the form of low interest rates, 0 processing fees, among many others.
- Check gold prices : Gold prices fluctuate every day, and as per the lender’s LTV policy, the amount of loan that can be availed also varies accordingly. Hence, checking gold prices allows the borrower to keep a tab on the best possible loan amount that can be availed from any particular lender and can help avail best gold loan rate today.
- Select appropriate tenure : High tenure makes for a high risk on the lender’s loan books, selecting appropriate tenure which is more aligned with the risk exposure can help secure a good deal from the lender.
- Maintain good credit score : A good credit score is a representation of the borrower’s healthy borrowing habits and timely repayments. It puts the lenders in comfort, hence maintaining a good credit score can help boost gold loan eligibility and secure good deals for loans.
Conclusion:
Gold loans are India's highest demand and high-rise growth lending channels on account of increasing gold prices and increasing demand. Gold Loan tools like Muthoot Gold Loan Calculator make planning from the borrower's end easier through quick and accurate estimates of the amount of loan. With minimal inputs of loan amount, rate of interest, and duration of loan, the calculator gives instant results of EMI and payable amount, making planning easy and wise borrowing.
This calculator comes in handy in comparing different loan quotes from different lenders and picking the lowest-priced one. It can be utilized by simply putting in the principal, interest rate, and the loan duration to view precise repayment facts.
Several factors affect loan estimates, including purity of gold, market rate of gold, Loan-to-Value (LTV) ratio, and tenure. Increased purity and market rate of gold can result in better terms on the loan. Availing better terms on loans is all about making use of high-purity gold, monitoring gold prices, choosing adequate tenure, and possessing a good credit score.
In short, the Muthoot Gold Loan Calculator is a convenient, handy loan calculator for applicants seeking loans who wish to make informed gold loan decisions.
