Is gold loan interest calculated as simple interest or compound interest in India?

Compound interest calculator India

In India, there are many businesses that provide gold loan but are still unorganized.

Banks and renowned companies like Unimoni offer gold loans and offer assistance to the lone.

In case of gold loans, simple interest is always used.

If jewellers quote 4% interest rate per month, the loaner will have to pay 4% interest on simple rate basis.

In case, the lone fails to pay the interest of a particular month, it is added to the Principal.

Whenever the next interest will be paid, it will include the unpaid interest as well as interest for Principal.

You can also use a gold loan interest calculator for calculating.

Compound interest calculator quarterly

Mutual Funds dont pay interest.

,They pay dividend and also you gain by capital appreciation due to growth in NAV.