Gold Loan Calculator
This gold loan calculator estimates the maximum loan amount you can get against your gold, based on its weight, purity and today's rate, capped at the RBI's regulatory LTV limit. It also compares the two common repayment structures — standard EMI and interest-only bullet repayment — so you can see the monthly outflow and total cost of each.
Total weight of the gold you're pledging, in grams.
22 Karat is the most common purity for gold jewellery pledged for loans in India.
Gold rates change daily — check today's rate before relying on this figure.
The RBI caps gold loan LTV at 75% of the gold's value.
The annual interest rate offered by your lender.
Gold loans are typically short-tenure and renewed periodically, unlike a home loan.
Maximum loan amount
Log in to save₹2,40,450
The largest loan you could get against this gold at your chosen LTV.
Full amortizing repayment — each payment covers interest plus a slice of principal.
Bullet repayment — pay only interest monthly, the full principal is due at the end.
How to use this gold loan calculator
- 1Gold weight and purity: the total weight of the jewellery, coins or bars you're pledging, and their karat purity — check your gold's hallmark or ask your lender to assess it.
- 2Gold rate (24K): today's per-gram rate for pure gold — this changes daily, so confirm the current rate rather than relying on a saved figure.
- 3LTV: the percentage of your gold's value the lender will advance as a loan — the RBI caps this at 75%, though individual lenders may offer less.
- 4Interest rate and tenure: your lender's quoted rate and the loan period — gold loans are usually short-tenure (a few months to a few years) and often renewed rather than run to full term.
Understanding your results
Maximum loan amount is the number that matters most — the largest amount you could borrow against this gold at your chosen LTV. Estimated gold value is the underlying collateral value before the LTV cap is applied. The EMI option shows the standard amortizing repayment with its total interest cost; the interest-only option shows what a bullet-repayment structure looks like — a lower monthly payment, but the full principal falls due at the end, and (as this example shows) the total interest is usually higher since none of your monthly payment reduces the principal along the way.
The formula
Gold value = Weight × Rate(24K) × Purity multiplier · Max loan = Gold value × LTV%The 24K rate you enter is first converted to an effective per-gram value for your gold's actual purity (24K = ×1.0, 22K = ×0.916, 18K = ×0.75), then multiplied by weight to get the gold's value. The maximum loan amount is that value times your LTV percentage. From there, the EMI option runs the standard reducing-balance loan formula, while the bullet option simply charges interest monthly on the full principal (Principal × Rate ÷ 1200) since none of it is repaid until the end.
A worked example
50 grams at 22K purity, with a 24K gold rate of ₹7,000/gram: the effective 22K rate is ₹7,000 × 0.916 = ₹6,412/gram, so the gold is worth 50 × ₹6,412 = ₹3,20,600. At the RBI's 75% LTV cap, the maximum loan is ₹2,40,450. At 10% interest over 1 year, the standard EMI is about ₹21,139/month, totalling roughly ₹13,223 in interest. The interest-only bullet option instead costs about ₹2,004/month, but totals roughly ₹24,045 in interest over the same year — nearly double the EMI option's interest, because the full ₹2,40,450 principal keeps accruing interest all year instead of shrinking with each payment.
Things to know
The 75% LTV figure is an RBI-mandated ceiling, not a guarantee — many lenders offer less, especially for lower-purity gold or larger loan amounts. Purity matters directly to how much you can borrow: 22K jewellery yields less loan value than 24K coins or bars of the same weight, since jewellery also typically has wastage and making-charge deductions that lenders may factor in separately. Gold loans are typically short-tenure products, renewed every few months to a few years, rather than long amortizing loans like a home loan. Both EMI and interest-only bullet repayment are common in the market — bullet repayment keeps your monthly outflow low, which suits borrowers expecting a lump sum later, but it defers the entire principal to a single repayment date and usually costs more in total interest. Most importantly, gold loans are secured against the pledged gold — defaulting risks the lender auctioning it off, so borrow only what you can realistically repay.
Frequently asked questions
Why is my loan amount less than my gold's full value?+
Lenders cap gold loans at a loan-to-value ratio — the RBI's ceiling is 75% — to protect against gold price drops during the loan term. Some lenders offer less than the maximum, especially for lower-purity gold.
Should I choose EMI or interest-only (bullet) repayment?+
EMI suits borrowers who want steady progress paying down the principal and typically pay less total interest. Interest-only suits borrowers expecting a lump sum (bonus, harvest income, maturing investment) to clear the principal at the end, but it means a larger single payment due later and usually more total interest paid over the loan.
What happens if I can't repay my gold loan?+
The lender can auction the pledged gold to recover the outstanding amount, typically after a grace period and notice. This is the core risk of a gold loan — treat the maximum loan amount as a ceiling, not a target, if repayment is uncertain.
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