1. What is EMI Calculation?

EMI (Equated Monthly Installment) calculation determines the fixed monthly payment amount for a gold loan, consisting of both principal and interest components, to be paid over the loan tenure.

2. How Does the Calculator Work?

The calculator uses the standard EMI formula:

Where:

• \( P \) — Loan principal amount (₹)
• \( r \) — Monthly interest rate (annual rate ÷ 12 ÷ 100)
• \( m \) — Loan tenure in months

Explanation: The formula calculates the fixed monthly payment that includes both principal repayment and interest charges over the loan period.

3. Importance of EMI Calculation

Details: Accurate EMI calculation helps borrowers understand their repayment obligations, plan their finances effectively, and choose the right loan tenure based on their repayment capacity.

4. Using the Calculator

Tips: Enter the loan amount in ₹, annual interest rate in percentage, and loan tenure in months. All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: What is the current gold loan interest rate at Indian Bank?
A: As of 2025, Indian Bank offers competitive gold loan interest rates typically ranging from 7% to 15% per annum, depending on various factors.

Q2: How is gold value calculated for loan purposes?
A: Indian Bank calculates gold value based on current market price, purity of gold, and weight of the ornaments, usually offering 75-80% of the market value as loan amount.

Q3: What is the maximum tenure for Indian Bank gold loans?
A: Indian Bank typically offers gold loans with tenure ranging from 3 months to 3 years, extendable based on bank policies.

Q4: Are there any processing fees for gold loans?
A: Indian Bank may charge nominal processing fees, documentation charges, and valuation fees for gold loans, which vary based on the loan amount.

Q5: Can I prepay my gold loan?
A: Yes, Indian Bank allows prepayment of gold loans, though prepayment charges may apply depending on the loan tenure and bank policies.