Answer: Option C = 64.10 Show
Simple Interest for four years = Principle * rate of Interest * No. of years => 1000* 10/100 * 4 => Rs. 400 Compound Interest 1st Year Interest = Principle * rate of Interest => 1000*10/100 = Rs. 100 2nd Year Principle = Principal + Interest => 1000+100 = Rs. 1100 2nd Year Interest = 1100*10/100 => Rs. 110 3rd Year principal = 1100+110 = Rs. 1210 3rd Year Interest = 1210*10/100 => Rs.121 4th Year principal = 1210+121 = Rs. 1331 4th Year Interest = 1331*10/100 => Rs 133.10 Total 4 years Compound interest => 100+110+121+133.10 = Rs. 464.10 Difference = Compound Interest - Simple Interest => 464.10 - 400 = Rs. 64.10 This is the reason why Gold Loan is one of the fastest-growing financial products in the market. Gold Loan Interest Rate is quite low and affordable in comparison to other services like Personal Loan and Home Loan.
Which Bank offers the lowest Gold Loan Interest Rate?On the basis of the Gold Loan interest rate, the best bank to avail of a gold loan is HDFC Bank. The Gold Loan Interest Rate of this bank starts at 9.90% per annum, which is the lowest in contrast to other lending institutions. Also, HDFC Bank is one of the best private sector banks; hence it a safe option to avail of this service. Next, the customer can also avail of this service from Yes Bank as it second on the list of banks providing the least Gold Loan Interest Rate at 9.90% per annum. Metro : 25000, Non : 15000 0.25% to 1.50% of the Loan Amt Gold Loan Preclosure Chgs 2%, Nil foreclosure charges after 3 months 2%, Nil foreclosure charges after 9 months Gold Loan Overdraft Facility Gold Loan Pay Only Interest Facility Comparison of Gold Loan Interest RatesGold Loan Providing Banks Interest Rates Loan Amount Tenure Manappuram Gold Loan Up to 29% p.a. Rs 1,000 to Rs 1.5 crore 3 months onwards SBI Gold Loan 7.50% p.a. onwards Rs20,000 to Rs20 lakh Upto 36 months HDFC Gold Loan 9.90% to 17.90% Rs25,000 onwards 3 months to 24 months ICICI Gold Loan 10% p.a. To 19.76% p.a. Rs10,000 to Rs10 crore 3 months to 12 months Axis Bank Gold Loan 15% p.a. onwards Rs25,001 to Rs20 lakh 3 months to 36 months Canara Bank Gold Loan 7.65% p.a. Rs10,000 to Rs10 lakh Upto 12 months Bank of Baroda Gold Loan 10.35% p.a. Upto Rs25 lakh Upto 12 months Karnataka Bank Gold Loan Contact bank for updates Upto Rs5 lakh per account Upto 12 months PNB Gold Loan 7.8% p.a. onwards Rs25,000 to Rs10 lakh As per the terms and conditions India Infoline (IIFL) 12% p.a. onwards Rs3,000 onwards Upto 11 months Kotak Mahindra Gold Loan 10.5% to 17% p.a. Rs25,000 to Rs25 lakh 12 months onwards Federal Bank Gold Loan 8.50% p.a onwards Rs 1,000 onwards It depends on the lenders Central Bank of India Gold Loan 9.05% p.a onwards Upto Rs 20 lakhs 12 months What is a Gold Loan?Gold Loan is a service that helps people to overcome financial instability in their life. To get a gold loan, one should have gold ornaments of purity between 18 Carat and 22 Carat. The applicant just has to keep gold ornaments in the bank as security in return for the loan amount. Moreover, anyone with a weak CIBIL Score can also apply for this service. Furthermore, the employment status is not a concern for the lending institution. Thus, anyone having gold in their name can apply for a loan. Things to know before applying for Gold LoanIf you are applying for a gold loan for the first time, then you should be aware of the following things: Maximum Loan Amount – Banks extend a percentage of the value of gold as the loan amount. Currently, you can get up to 90% of the value of gold in gold jewellery as a loan amount. However, the bank has the final say on how much loan amount it extends to its applicants. So if the bank appraises your gold articles at Rs. 10,000, then you can get up to Rs. 9,000 as a loan amount. Safety of Your Gold Item – The banks take over the responsibility of safeguarding your gold articles once you submit them with them. Some lenders even insure your gold articles. If you want, you may enquire about the safety measures taken by the bank to safeguard your gold articles. Loan Payments Default – The bank reserves the right to auction off your gold articles in the event you fail to pay off the loan amount. Hence, you must pay off the amount in a timely manner. How to apply for Gold Loan at DialaBank?Dial-a-bank is a one-stop shop for all of your financial needs. You can apply for a Gold Loan through Dial-a-Bank to make the process quick and easy. After completing the online application, the Dial-a-Bank team will handle all the further procedures. You must visit Dial-a-Bank official website for more details and apply for a loan by fooling a few simple steps:
Current Gold Loan Interest Rate as on Jan 02 2023Public Sector Banks Providing Gold LoanPublic Sector BanksInterest RatesRepayment SchemesSBI7.50%Bullet RepaymentCanara Bank7.65% – 7.75%Bullet RepaymentAndhra Bank10.70%Bullet RepaymentPNB8.75%EMI Scheme / Bullet Repayment / OverdraftPrivate Banks Providing Gold LoanPrivate Sector BanksInterest RatesRepayment SchemesHDFC Bank9.90% – 17.10%Bullet Repayment / OverdraftYes Bank9.99% – 14.50%EMI Scheme / OverdraftICICI Bank10.00% – 19.76%EMI SchemeFederal Bank8.50% – 11.95%Bullet Repayment / OverdraftAxis Bank13.00%EMI Scheme / Bullet RepaymentIndusInd Bank10.00% – 16.00%Bullet RepaymentNBFCs Providing Gold LoanGold Loan NBFCsInterest RatesRepayment SchemesMuthoot11.99% – 11.99%EMI Scheme / Bullet RepaymentManappuram12.00% – 29.00%EMI Scheme / Bullet RepaymentWhat are the factors on which the Gold Loan Interest Rate depends?The Gold Loan Rate depends on different factors. They are discussed below:
Gold Loan Rates Comparison with Tenure PeriodBank Name Interest Rates of Gold Loan Processing Fee Maximum tenure period SBI Gold Loan 7.50% 0.50% of the loan amount, minimum Rs500 36 months Muthoot Gold Loan 11.99% 0.25% to 1% of the loan amount 36 months Manappuram Gold Loan 9.90% Rs 10 (pay at the time of settlement) 3 months HDFC Bank Gold Loan 9.90% 1% of the loan amount 24 months Yes, Bank Gold Loan 9.99% Upto Rs799 36 months ICICI Bank Gold Loan 10.00% 1% of the loan amount 12 months Federal Bank 8.50% Nil 12 months Canara Bank 7.65% 0.5 of the loan amount, Min Rs1,000 and max Rs 5,000 12 months Andhra Bank 10.70% Nil processing fees 12 months Axis Bank 12.50% 1% plus GST 24 months IndusInd Bank 10.50% Upto 1% of the loan amount, minimum Rs 750 24 months Punjab National Bank 8.75% 0.70% of loan amount+ taxes 12 months Fincare Small Finance Bank 12.99% Upto 0.25% 12 months Factors Affecting the Interest Rates of Gold LoanThe Market value of Gold If the market price of gold is high, the value of the gold ornaments or coins you are pledging would be high as well. In such situations, lenders can give you a lower interest rate because the risk is low, and if you are unable to make the equated monthly instalments (EMIs), the lender will easily recover the outstanding sum by selling or auctioning the gold ornaments. Purity & Weight The quantity and quality of the gold are the main parameters that affect the maximum gold loan amount given to you. The purity and net weight of the gold articles are checked by a bank-nominated appraiser. Some banks do not accept gold ornaments that are below 18 carats. Inflation When the rate of inflation is high, the value of money drops in value, and people are more likely to accumulate gold. Inflationary conditions, particularly when they last for a long time, act as a hedge against gold. As a result, the price of gold rises, and if you need a gold loan, you will be able to get lower interest rates from lenders. Relationship with the bank Most lenders only give gold loans to their current clients, but in some situations, people who have never had a relationship with the bank can get one. Existing bank/lending institution customers, on the other hand, are usually in a stronger position to negotiate a lower interest rate. How to effectively repay your Gold Loan online?Nowadays, All lenders offer online repayment options. The repayment of Gold Loan online is a very easy and convenient process. You are given a login ID and password at the time of the online application. You have to use this same ID for payment of your debts by following online repayment procedures. There are several modes of payments such as cash, EMI, cheque and DD. Are there any chances of your Gold Loan getting rejected?When the verification of the gold submitted by you at the bank is completed, then only the process of disbursement proceeds further. Suppose it is discovered that the gold item is fake, stolen, or missing a bill, or that the documents are not original, the chances of rejection increase. The loan approvals depend on the purity of gold and KYC Documents of the borrower, which leaves fewer chances of getting rejected. How can a Gold Loan boost your CIBIL Score?If you are a defaulter, a loan against gold may be able to help you improve your credit score. This is possible because a gold loan is a secured loan that helps to strengthen your credit score when compared to an unsecured personal loan. Gold Loan can be obtained without providing proof of income. Only your KYC documents and the gold valuables have to submit for the verification process in the bank. As a result, you can take out a small loan and repay it on a regular basis to boost your credit score. HDFC Bank Gold Loan Interest RateHDFC Bank provides the service of Gold Loan at a reasonable interest rate. The Rate of Interest starts at 9.90% per annum and can go up to up to 12.75% per annum.
Yes Bank Gold Loan Interest RateYes, Bank Gold Loan is a service that helps people to get cash against gold jewellery. The Gold Loan Interest Rate starts at 10.99%.
ICICI Bank Gold Loan Interest RateICICI Bank is a private sector bank that provides the service of gold loan very quickly and with minimal documentation. The Gold Loan Interest Rate of ICICI Bank starts at 10.00% per annum.
Manappuram Gold Loan Interest RateManappuram is one of the best NBFC to avail of a gold loan. The Interest rate of Manappuram starts at 12.00% per annum. And, it can go up to 28% per annum according to the requirement of the customer.
Muthoot Gold Loan Interest RateMuthoot Finance is also an NBFC that is famous for providing the service of Gold Loan. The Gold Loan Interest Rate of Muthoot starts at 12% per annum. And, it can go up to 26% per annum.
IIFL Gold Loan Interest RateIIFL charges around 9.24% per annum as Gold Loan Interest Rate from the customers. It can also go up to 14% per annum, according to the customer.
SBI Gold Loan Interest RateState Bank of India is a public sector bank that provides the service of gold Loan to the customers. The Gold Loan Interest Rate starts at 10.75% and can go up to 7.50% per annum.
How to get the lowest gold loan rates?
What are the Factors that Decide the Loan Amount?The loan amount depends upon certain factors that are listed below: Quality of Gold: First of all, the amount of loan that banks disburse to the customers depend upon the quality of the gold they want to keep as security. Thus, the higher the purity of gold, the higher can be the amount of loan. Note: Gold ornaments with 24 Carat purity are not given a loan. The purity should lie between 18 Carat-22 Carat. Quantity of Gold: Next, the weight of gold also decides the loan amount. Hence, a customer having more quantity of gold is eligible for a higher loan amount. What are Different Gold Loan Schemes?The lending institutions provide different schemes to the customers for the repayment of the loan. The three main repayment schemes are:
Gold Loan EMI CalculatorGold Loan EMI Calculator helps one to understand the EMI that will have to be paid by the customer after availing of a gold loan. You can easily know the EMI structure in the comfort of your home. Check the pre-calculated EMI Table below: Gold Loan Processing Fees and ChargesName of the BankProcessing feeValuation chargesFore-closure chargesPenal interestAxis Bank1% of the loan amount500Nil2% on the overdue amountKotak Mahindra Bank2% of the loan amountMinimum 250 and Maximum 2,000Nil3% of the overdue amountICICI Bank1% of the loan amountContact bank for the charges1% of the principal balance if closed before 11 months for the 12 months tenure slab.1% of the principal balance if closed before 5 months for the 6 months tenure slab6% of the overdue amountSyndicate Bank1% of the loan amountMinimum 30 and maximum 300Nil2% of the overdue amountHDFC Bank1.5% of the loan amount250 for loans up to 1.50 Lakhs and 500 for loans above 1.50 Lakhs2% of the outstanding loan amount if closed before 3 months and 1% of the outstanding loan amount if closed within 6 months2% over and above the regular interest on the overdue amount What are the Features of Gold Loan?
How is a Gold Loan is better than a Personal Loan? There are a lot of advantages of Gold Loan, which make it better than any personal loan. Following are the benefits of Gold Loan:
Loan Amount Per Gram of GoldNumerous lenders offer you loans on pledging gold at appealing interest rates. The loan amount varies primarily based on the weight of gold that you pledge. The loan amount is something that varies across banks. Why Apply for a Gold Loan on DialaBank?You may make a comparative analysis of the rates given by different banks online on Dialabank since all of the information is compiled on a single page and is accessible to you. Collecting the news on your own would be a time-consuming and exhausting procedure. You may do an in-depth analysis of the offers made by several financial institutions. After you’ve determined which institution you want to borrow from, you can apply for the loan using Dialabank. How to Apply?The applicant can apply for a Gold Loan at the comfort of their home. Thus, just visit the Dialabank website. Then, fill a simple form online. After this, our relationship manager will get back to you to guide you through the process. Besides, you can directly call on 9878981144. Click Here to Read more about Gold Loan. GOLD LOAN @ 0.49%*APPLY NOWTo apply for a gold loan, Claimants are required to get their Owned Gold, gold ornaments or coins are checked by checking their purity and net weight. Applicants must be above 18 years of age and a maximum of up to 70 years. Documents RequiredBanks usually ask for the documents specified below. If anything else is needed, the bank will ask to share at the time of application.
Customer care number to know more about Gold Loan Interest RatesYou can apply for Gold Loan by following the below-mentioned points:
Customers can contact the Gold Loan customer care via any of the following means:
FAQ’s About Gold Loan Interest Rates✅ Am I eligible to avail myself of a gold loan?Yes, you are eligible to apply for a gold loan provided you fulfill the age eligibility requirements and own gold jewellery. ✅ How long would it take to process my Gold Loan?A gold loan from any bank usually gets disbursed within an hour. However, this is subject to the loan amount, verification of the gold quality and the verification of the documents that you submit. ✅ What type of security is needed to avail of a gold loan?The loan amount is given against the gold pledged by you. Hence, the only security required is a gold ornament. ✅ What is the interest rate on my gold loan?The interest rate on gold loan keeps changing from time to time and from one lender to another. The current lowest interest rate offered by a lender stands at 9.90% offered by HDFC Bank. ✅ Is it possible to repay my gold loan amount partially?Yes, you can make a part payment, but the gold jewellery will only be released after the entire outstanding amount is repaid. ✅ Can I prepay or foreclose my gold loan?Yes, one can prepay or even foreclose the loan amount. But, certain lenders charge a penalty fee if a customer wants to prepay or foreclose the loan before the loan tenure ends. These charges range from 2-4%. ✅ How much amount can I expect for my gold?The loan amount is completely dependent upon the quality and quantity of the gold you are pledging as a security with the bank. It is also dependent on the carats of gold jewellery. ✅ What is the gold loan interest rate?Gold loan interest is the monthly amount a borrower pays in addition to the principal loan amount. Different banks and financial institutes offer different rates of interest. On average, this rate varies between 9.99% and 12% per annum. ✅ How to calculate the EMI for a gold loan?To calculate EMI, you need the following three parameters, namely,
The formula to calculate gold loan EMI is, E = P x r x [((1+r)^n)/((1+r)^n)-1] ✅ What is the interest rate prevailing on an agriculture gold loan?Agricultural gold loans start at a very low interest rate of just 7% per annum. A person is required to present proof of agricultural land and cultivation along with the basic documents required like the Aadhar Card and PAN Card that are required. ✅ What is the margin in a loan against gold?Banks and NBFCs keep a margin of at least 25% in the case of gold loans. This means a person can avail a maximum of 75% of their entire gold’s market value as the loan amount. For example, if your gold is valued at Rs. 1 Lakh in the market, then banks will offer you a maximum loan amount of Rs. 75,000, keeping Rs 25k as a margin. ✅ Which bank gives the highest gold loan?HDFC Bank is currently the best bank to avail a gold loan as it provides gold loans at an LTV ratio of 75%, which means you can avail a loan amount of up to 75% of your gold’s market value that too at a minimum rate of interest of 9.99% only. The gold loan amount in HDFC starts at Rs. 25000 for urban areas and at Rs. 10000 for rural areas. ✅ How is Gold Loan calculated?The gold loan amount depends upon the golds purity and the current market gold rate. The rate of interest is then calculated based upon a number of factors including, loan amount, tenure, interest rates prevailing with the lender, and loan to value ratio. What will be the difference between simple and compound interests at the rate of 10% per annum on a sum of Rs 1000 after 2years?1000, the interest is 10% per annum for a period of 4 years. Now, we know that the simple interest on a principal P at a rate of R for T years is P×R×T100. So, using this we have simple interest =1000×4×10100=Rs. 400.
What is the difference between SI and CI on a sum of Rs 1000 at 10% for 2 years?Difference = Rs 10. ∴ The difference of CI and SI for 2 years is Rs. 10.
What will be the difference between simple interest and compound interest at 10%?What is the main difference between simple interest and compound interest? Simple interest is computed on the principal amount or loan amount whereas compound interest is computed based on the principal amount as well as the interest accumulated for a certain period or previous period.
What will be the simple interest on 1000 at 10% per annum?Hence, the simple Interest at the end of 10 years = 1000× 10× 10100 = ₹1000.
|