1. What is HDFC Gold Loan Interest?

HDFC Bank offers gold loans with interest rates typically between 9-11% per annum. The interest is calculated using simple interest formula based on the principal amount, interest rate, and time period.

2. How Does the Calculator Work?

The calculator uses the simple interest formula:

Where:

• \( P \) — Principal amount (INR)
• \( r \) — Annual interest rate (in decimal)
• \( t \) — Time period in years

Explanation: The interest is calculated by multiplying the principal amount by the annual interest rate (converted to decimal) and then by the time period in years.

3. Importance of Interest Calculation

Details: Calculating interest helps borrowers understand the total cost of the loan and plan their repayments accordingly. For gold loans, this is particularly important as they are typically short-term loans.

4. Using the Calculator

Tips: Enter principal amount in INR, annual interest rate in percentage (typically 9-11% for HDFC gold loans), and time period in years. All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: What are typical interest rates for HDFC gold loans?
A: HDFC gold loan interest rates typically range between 9% to 11% per annum, depending on loan amount and tenure.

Q2: Is this simple interest or compound interest?
A: Gold loans typically use simple interest calculation, unlike home or personal loans which use compound interest.

Q3: What is the maximum loan amount against gold?
A: HDFC offers up to ₹20 lakh or 75% of the gold's value, whichever is lower.

Q4: What is the typical tenure for gold loans?
A: Gold loans are usually short-term, ranging from 3 months to 3 years.

Q5: Are there any processing fees?
A: HDFC may charge processing fees up to 1% of the loan amount plus applicable taxes.