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Gold Loan EMI Calculator by Reducing Balance
EMI
Reducing Balance
Flat Rate
Bullet Payment
Loan Amount
Loan Tenure
Year
Month
Rate of Interest
%
Copy
Share
EMI
2125
Interest
27482
Principal
100000
Total
127482
27 K
5
Year
100,000
23 K
Year
Original
Reduced
𝒊
2125
will be
EMI
for
100000
(100 K)
Loan Amount
for
5
Year
Loan Tenure
at
10.00%
Rate of Interest
.
How to Reduce Interest/ Tenure?
Pay
0
1
2
3
4
5
Extra EMI every year.
𝒊
Increase EMI by
0
2
3
5
7
10
15
20
% every year.
𝒊
Pay Lump-Sum
0
(1 K)
(2 K)
(3 K)
(4 K)
(5 K)
(6 K)
(7 K)
(8 K)
(9 K)
(10 K)
in
0
1
2
3
4
year.
𝒊
Recalculate
Share
Loan
Tenure
Interest
Original
5 year
27482
Reduced
4 year
23200
Saved
1 year
4282
Loan Payment Schedule
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
Original
Reduced
Balloon Payment
36 K
27 K
18 K
9 K
0
-
-
-
-
-
2024
2026
2028
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Gold Loan EMI by Reducing Balance
A Gold Loan EMI by Reducing Balance calculates interest on the outstanding principal amount, which decreases as you make repayments. This results in gradually lowering EMIs over time, as interest is charged only on the remaining balance. This method typically results in lower total interest costs compared to flat rate loans, as the interest burden reduces as the principal is repaid. Use our Gold Loan EMI Calculator by Reducing Balance to calculate your loan repayments accurately. Understand the breakdown of interest and principal to make better financial decisions with your gold assets.
Calculate Gold Loan EMI by Reducing Balance
Enter loan details including loan amount, interest rate, tenure, and choose months or years to calculate gold loan EMI by reducing balance.
Click Calculate to view your initial loan breakdown and calculate gold loan EMI by reducing balance based on your inputs.
Customize payment options with three inputs for effective management.
Select a number of extra EMIs per year to optimize your payments.
Increase EMIs by a percentage for better control over your loan.
Select lump sum payment in a specific year to enhance your calculation.
Adjust inputs as needed and click Recalculate to dynamically update your tenure and interest. Understanding your gold loan EMI will help in managing your payments effectively.
Reducing Balance EMI formula
To calculate Gold Loan EMI, use the Reducing Balance EMI formula for precise results. This calculation helps you understand your repayment obligations clearly.
E
M
I
=
P
×
r
×
(
1
+
r
)
n
(
1
+
r
)
n
-
1
EMI
= Equated Monthly Installments
P
= Principal loan amount
r
= Monthly interest rate
n
= Number of monthly installments
Eligibility Criteria for Gold Loan EMI by Reducing Balance
Ownership of Gold:
Applicants must possess gold assets such as jewelry, coins, or bars that can be pledged as collateral for the loan.
Age:
Borrowers typically need to be at least 18 years old, although some lenders may have higher age requirements.
Documentation:
Providing valid identification documents such as Aadhar card, PAN card, or passport is necessary for loan processing.
Loan-to-Value Ratio:
Lenders usually offer loans up to a certain percentage of the gold's appraised value, known as the loan-to-value ratio. Meeting this requirement ensures sufficient collateral coverage for the loan amount. Understanding your gold loan EMI by reducing balance can help in planning your finances effectively.
Gold Loan EMI Calculator by Reducing Balance FAQ
How does Reducing Balance EMI differ from Flat Rate EMI?
Reducing balance EMI charges interest on the decreasing principal, leading to gradually lower payments and lower total interest. Flat rate EMI charges interest on the full principal throughout the term, resulting in fixed payments and generally higher total interest costs.
What are the advantages of a Gold Loan EMI by Reducing Balance?
Gold loan EMI by reducing balance generally incurs lower overall interest costs, as interest is recalculated on the decreasing principal balance. This method allows borrowers to pay off their loans faster due to decreasing interest payments over time.
What are the disadvantages of a Gold Loan EMI by Reducing Balance?
Gold loan EMI by reducing balance may have slightly higher initial payments compared to flat rate EMIs, as interest is calculated on the original loan amount. Although it offers cost savings, the method is more complex, requiring borrowers to understand how reducing interest rates affect their repayment schedule.
×
How extra EMI(s) help?
At the end of the year, you can pay extra EMIs out of your savings. This extra EMI payment will go towards your Loan Amount and save you on the interest as well as tenure of the loan.
Payment
Tenure
Interest
Current
5 year
27482
1 Extra EMI/ year
5 year
▶ 0 year
25197
▶ 2285
2 Extra EMI/ year
5 year
▶ 0 year
23348
▶ 4134
3 Extra EMI/ year
4 year
▶ 1 year
21862
▶ 5620
How increasing EMI helps?
As your income increases each year, you can get your EMI increased from the bank. This allows you to allocate more funds towards paying off the loan amount and save you on the interest as well as tenure of the loan.
Payment
Tenure
Interest
Current
5 year
27482
Increase EMI by 1%
5 year
▶ 0 year
27071
▶ 411
Increase EMI by 3%
5 year
▶ 0 year
26321
▶ 1161
Increase EMI by 5%
5 year
▶ 0 year
25657
▶ 1825
How Paying Lumpsum Amount helps?
If you receive unexpected income, such as a bonus or tax refund, consider making a lump-sum payment on your loan. This can help reduce the outstanding loan amount and save you on the interest as well as tenure of the loan.
Payment
Tenure
Interest
Current
5 year
27482
Pay 10% in 2nd year
5 year
▶ 0 year
24292
▶ 3190
Pay 20% in 3rd year
5 year
▶ 0 year
24076
▶ 3406
Pay 30% in 4th year
4 year
▶ 1 year
26153
▶ 1329
How to Reduce Interest/ Tenure?
Making early payments towards Principal amount can reduce your Interest and/ or Tenure.
1. How extra EMI(s) help?
At the end of the year, you can pay extra EMIs out of your savings. This extra EMI payment will go towards your Loan Amount and save you on the interest as well as tenure of the loan.
2. How increasing EMI helps?
As your income increases each year, you can get your EMI increased from the bank. This allows you to allocate more funds towards paying off the loan amount and save you on the interest as well as tenure of the loan.
3. How Paying Lumpsum Amount helps?
If you receive unexpected income, such as a bonus or tax refund, consider making a lump-sum payment on your loan. This can help reduce the outstanding loan amount and save you on the interest as well as tenure of the loan.
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