How to estimate gold loan repayments with a digital gold loan calculator

Learn how the Bajaj Finance Gold Loan Calculator helps estimate your repayments, compare repayment options, and plan your gold loan before applying.

Before applying for a gold loan, it is important to understand how much needs to be repaid over the loan tenure. A digital gold loan calculator helps borrowers estimate their repayment amount, compare different repayment options, and plan their finances better. Knowing these details in advance makes it easier to choose a loan that suits their financial needs and repayment capacity.

Key takeaways
1. A gold loan calculator estimates your repayment amount in just a few clicks, with no manual calculations required.
2. Different repayment tenures and repayment options can affect the amount payable over the loan tenure.
3. The calculator provides an estimate only. Borrowers should confirm the final repayment details with the lender before applying.

What is a gold loan repayment?
When a borrower takes a gold loan, the borrowed amount and the applicable interest need to be repaid over the chosen loan tenure. Depending on the lender's offerings, repayment may be made through regular monthly or periodic payments, interest-only payments at scheduled intervals, or other available repayment options.

What is a gold loan calculator?
A gold loan calculator is a free online tool that helps borrowers estimate their repayment amount before applying for a loan. By entering a few basic details, such as the loan amount, repayment tenure, and interest rate (where applicable), the calculator provides an estimated repayment schedule, making it easier to plan ahead.

Why should borrowers use a gold loan calculator?
It helps with financial planning
Knowing the estimated repayment amount in advance allows borrowers to plan their finances more effectively.

It saves time
The calculator performs the calculations instantly without the need for manual computation.

It allows easy comparison
Borrowers can compare different loan amounts, repayment tenures, or repayment options to understand how these affect their repayment obligations.

It is simple to use
The calculator is designed for everyone and can be used without any financial expertise.

How to use a gold loan calculator
1. Enter the approximate weight of your gold in grams.
2. Select the purity of your gold, such 18-22 karat jewellery and ornaments, or eligible gold coins up to 24 karat purity.
3. Input the expected loan amount or preferred repayment tenure, depending on the calculator format.
4. The calculator then considers the prevailing gold rate and applicable RBI-prescribed loan-to-value (LTV) ratio.
5. Based on these details, it displays an estimated eligible loan amount.
6. Gold valuation is usually based on the lower of the average closing price for your gold’s specific purity over the last 30 days average closing price or the previous day’s closing price, as published by IBJA or a SEBI-regulated commodity exchange.

A simple example
Suppose a borrower takes a gold loan of ₹50,000 with a repayment tenure of 6 months. The calculator estimates the periodic repayment amount based on the selected tenure and applicable interest rate. If a longer tenure, such as 12 months, is selected, the periodic repayment amount may reduce, although the total interest payable over the loan tenure may be higher.

Things to remember

• The calculator provides an estimate and not the final repayment amount.
• The final repayment amount depends on the applicable interest rate, repayment option, and loan terms.
• You should confirm the final repayment details and applicable charges with the lender before applying.

Using a gold loan calculator before applying helps you estimate your repayment amount and understand how different loan amounts, repayment tenures, and interest rates can affect your overall borrowing cost. Once you are ready to apply, you can choose a Bajaj Finance Gold Loan with loan amounts ranging from ₹5,000 to ₹2 crore, interest rates starting from 9.50% p.a., and multiple repayment options to suit your financial needs. Planning ahead with the calculator helps you choose a suitable loan and make a more informed borrowing decision