Gold Loan Calculator

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Gold Loan Calculator body { font-family: 'Segoe UI', Tahoma, Geneva, Verdana, sans-serif; line-height: 1.6; color: #333; background-color: #f8f9fa; margin: 0; padding: 20px; } .loan-calc-container { max-width: 800px; margin: 30px auto; background-color: #ffffff; border-radius: 8px; box-shadow: 0 4px 15px rgba(0, 0, 0, 0.1); padding: 30px; border: 1px solid #e0e0e0; } h1, h2 { color: #004a99; text-align: center; margin-bottom: 20px; } .input-group { margin-bottom: 20px; display: flex; align-items: center; gap: 15px; } .input-group label { flex: 1; min-width: 120px; font-weight: 500; color: #004a99; } .input-group input[type="number"], .input-group input[type="text"], .input-group select { flex: 2; padding: 10px 12px; border: 1px solid #ccc; border-radius: 4px; font-size: 1rem; transition: border-color 0.2s ease-in-out, box-shadow 0.2s ease-in-out; } .input-group input[type="number"]:focus, .input-group input[type="text"]:focus, .input-group select:focus { border-color: #007bff; box-shadow: 0 0 0 0.2rem rgba(0, 123, 255, 0.25); outline: none; } .button-group { text-align: center; margin-top: 30px; } button { background-color: #004a99; color: white; padding: 12px 25px; border: none; border-radius: 5px; font-size: 1.1rem; cursor: pointer; transition: background-color 0.3s ease, transform 0.2s ease; } button:hover { background-color: #003366; transform: translateY(-2px); } #result { margin-top: 30px; padding: 25px; background-color: #e9ecef; border-radius: 8px; border: 1px solid #dee2e6; text-align: center; } #result h3 { color: #004a99; margin-bottom: 15px; font-size: 1.4rem; } #result p { font-size: 1.2rem; font-weight: bold; color: #28a745; } #result span { font-weight: normal; color: #333; } .article-content { margin-top: 40px; padding: 25px; background-color: #ffffff; border-radius: 8px; box-shadow: 0 2px 10px rgba(0, 0, 0, 0.05); border: 1px solid #e0e0e0; } .article-content h2 { text-align: left; margin-bottom: 15px; } .article-content p { margin-bottom: 15px; } .article-content ul { margin-left: 20px; margin-bottom: 15px; } .article-content li { margin-bottom: 8px; } @media (max-width: 600px) { .input-group { flex-direction: column; align-items: stretch; gap: 8px; } .input-group label { margin-bottom: 5px; min-width: unset; } .input-group input[type="number"], .input-group input[type="text"], .input-group select { width: 100%; } button { width: 100%; padding: 15px; } }

Gold Loan Calculator

24K (99.9%) 22K (91.6%) 20K (83.3%) 18K (75.0%) 14K (58.3%)

Loan Details

Loan Amount: N/A

Total Interest Payable: N/A

Total Repayment Amount: N/A

Estimated Monthly EMI: N/A

Understanding Your Gold Loan

A gold loan is a secured loan where you pledge your gold jewelry or ornaments as collateral to a financial institution (bank or NBFC). In return, the lender provides you with an instant loan based on the value of your gold and the lender's loan-to-value (LTV) ratio. This type of loan is popular due to its quick approval process and minimal documentation requirements.

How the Gold Loan Calculator Works

Our Gold Loan Calculator simplifies the estimation process by considering several key factors. Here's a breakdown of the calculations:

1. Net Gold Weight:

The calculator first determines the net weight of pure gold. Gold jewelry often contains alloys to add strength and durability. The purity percentage (e.g., 22K is 91.6% pure) is used to find the actual amount of pure gold.

Net Gold Weight = Gold Weight (grams) * (Gold Purity (%) / 100)

2. Gross Asset Value:

This is the market value of the pure gold you are pledging. It's calculated using the net gold weight and the current market rate for gold.

Gross Asset Value = Net Gold Weight (grams) * (Current Gold Rate (per 10g) / 10)

3. Maximum Loan Amount:

Financial institutions determine the maximum loan amount by applying a Loan-to-Value (LTV) ratio to the Gross Asset Value. The LTV is the percentage of the gold's market value that the lender is willing to lend.

Maximum Loan Amount = Gross Asset Value * (Loan-to-Value Ratio (%) / 100)

4. Interest Calculation:

The interest payable is calculated based on the sanctioned loan amount, the annual interest rate, and the loan tenure. We use a standard formula for calculating total interest over the tenure, assuming simple interest for a clearer estimation, or EMI calculation for more complex scenarios.

Total Interest Payable = Loan Amount * (Annual Interest Rate (%) / 100) * (Loan Tenure (months) / 12)

Note: For EMI calculations, a more complex formula is used that accounts for compounding interest over the tenure.

5. Total Repayment Amount:

This is the sum of the principal loan amount and the total interest payable over the tenure.

Total Repayment Amount = Loan Amount + Total Interest Payable

6. Estimated Monthly EMI (Equated Monthly Installment):

The EMI is the fixed amount you pay each month to service the loan. It includes both principal and interest components.

EMI = [P * R * (1+R)^N] / [(1+R)^N - 1]

Where:

  • P = Principal Loan Amount
  • R = Monthly Interest Rate (Annual Interest Rate / 12 / 100)
  • N = Loan Tenure in months

When to Use the Gold Loan Calculator:

  • Estimating Borrowing Capacity: Get a quick idea of how much loan you can avail based on your gold's value.
  • Comparing Offers: Estimate the cost of loans from different lenders by inputting their respective interest rates and LTV ratios.
  • Budgeting for Repayment: Understand your monthly financial commitment and total repayment cost.
  • Assessing Loan Feasibility: Decide if a gold loan is the right financial product for your needs.

Disclaimer: This calculator provides an estimation. Actual loan amounts, interest rates, and terms may vary based on the financial institution's policies, your creditworthiness, and the final valuation of your gold.

function calculateGoldLoan() { var goldWeight = parseFloat(document.getElementById("goldWeight").value); var goldPurity = parseFloat(document.getElementById("goldPurity").value); var currentGoldRate = parseFloat(document.getElementById("currentGoldRate").value); var loanToValue = parseFloat(document.getElementById("loanToValue").value); var interestRate = parseFloat(document.getElementById("interestRate").value); var loanTenure = parseFloat(document.getElementById("loanTenure").value); var loanAmountResult = document.getElementById("loanAmountResult").querySelector("span"); var interestPayableResult = document.getElementById("interestPayableResult").querySelector("span"); var totalRepaymentResult = document.getElementById("totalRepaymentResult").querySelector("span"); var monthlyEMIResult = document.getElementById("monthlyEMIResult").querySelector("span"); // Clear previous results loanAmountResult.textContent = "N/A"; interestPayableResult.textContent = "N/A"; totalRepaymentResult.textContent = "N/A"; monthlyEMIResult.textContent = "N/A"; // Input validation if (isNaN(goldWeight) || goldWeight <= 0 || isNaN(goldPurity) || goldPurity 100 || isNaN(currentGoldRate) || currentGoldRate <= 0 || isNaN(loanToValue) || loanToValue 100 || isNaN(interestRate) || interestRate < 0 || isNaN(loanTenure) || loanTenure 0) { calculatedMonthlyEMI = calculatedLoanAmount * monthlyInterestRate * Math.pow(1 + monthlyInterestRate, loanTenure) / (Math.pow(1 + monthlyInterestRate, loanTenure) – 1); calculatedTotalInterest = (calculatedMonthlyEMI * loanTenure) – calculatedLoanAmount; } else { // Simple interest if rate is 0% calculatedTotalInterest = calculatedLoanAmount * (interestRate / 100) * (loanTenure / 12); calculatedMonthlyEMI = calculatedLoanAmount / loanTenure; } var calculatedTotalRepayment = calculatedLoanAmount + calculatedTotalInterest; // Display Results loanAmountResult.textContent = "₹ " + calculatedLoanAmount.toFixed(2); interestPayableResult.textContent = "₹ " + calculatedTotalInterest.toFixed(2); totalRepaymentResult.textContent = "₹ " + calculatedTotalRepayment.toFixed(2); monthlyEMIResult.textContent = "₹ " + calculatedMonthlyEMI.toFixed(2); }

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