Gold Loan Calculator
LoanCalculate your gold loan eligibility and monthly EMI based on gold weight, current price, and loan-to-value ratio. Free EMI calculator for India.
🇮🇳This tool is specific to India
Loan Eligibility
₹2.63 L
Monthly EMI
₹23,200
Total Interest
₹15,902
Total Payment
₹2.78 L
What is a Gold Loan?
A Gold Loan Calculator estimates how much loan you're eligible for against your gold, based on its weight, current market value, and the loan-to-value (LTV) ratio your lender applies, then calculates the monthly EMI on that loan amount. Gold loans are one of the fastest and most accessible forms of secured borrowing in India, since the pledged gold itself substantially reduces the lender's risk.
This calculator handles both halves of the gold loan decision — how much you can borrow, and what you'd pay back monthly — in one place. It pairs well with the Gold Investment Calculator for understanding the other side of gold ownership, and the Personal Loan EMI Calculator for comparing against an unsecured borrowing alternative.
How to use this Gold Loan calculator
- Enter your Gold Weight in grams.
- Update Gold Value (24K) with today's actual gold rate.
- Set the Loan-to-Value (LTV) ratio your lender offers — 75% is the RBI-permitted maximum.
- Enter the Interest Rate your lender quotes.
- Set your preferred Loan Tenure in months.
- Read the Loan Eligibility result for your estimated maximum loan amount.
- Check Monthly EMI, Total Interest, and Total Payment to understand the full repayment commitment.
Formula & Methodology
The calculator first determines loan eligibility, then applies the standard EMI formula: Loan Eligibility = Gold Weight × Gold Value per Gram × LTV% EMI = P × r × (1 + r)ⁿ ÷ ((1 + r)ⁿ − 1), where P = loan eligibility, r = monthly interest rate, n = tenure in months Worked example: for 50 grams of gold at ₹7,000/gram, 75% LTV, 11% annual interest, over 12 months: - Gold Value = 50 × 7,000 = ₹3,50,000 - Loan Eligibility = 3,50,000 × 75% = ₹2,62,500 - Monthly EMI on ₹2,62,500 at 11% for 12 months ≈ ₹23,180
Frequently Asked Questions
Indian banks and NBFCs can lend up to 75% of your gold's market value, as per RBI's loan-to-value (LTV) regulations for gold loans. So if your gold is worth ₹1,00,000, you could be eligible for a loan of up to ₹75,000, depending on the lender's specific policy.
LTV is the percentage of your gold's value that a lender will offer as a loan — RBI caps this at 75% for gold loans in India, meaning lenders cannot offer more than three-quarters of your gold's assessed market value as a loan amount. Some lenders offer lower LTV ratios depending on their risk policies.
Lenders typically value gold based on its purity (22K, 24K, etc.) and weight, multiplied by the prevailing gold rate, often using a rate slightly below the live market rate as a safety margin. The exact valuation method can vary slightly between lenders, so the figure from your lender's appraisal may differ slightly from this calculator's estimate.
Gold loan interest rates in India commonly range from around 7% to 24% per annum, depending on the lender, loan amount, tenure, and your relationship with the bank or NBFC. Gold loans are generally cheaper than unsecured personal loans because the gold itself serves as strong collateral.
If you default on a gold loan, the lender has the legal right to auction your pledged gold to recover the outstanding loan amount, after following the required notice procedures. This is why gold loans, despite being relatively easy to obtain, still carry real risk if repayment isn't managed carefully.
Yes — many gold loans offer a bullet repayment option, where you pay only interest periodically (or none at all) and repay the full principal at the end of the tenure, instead of equal monthly instalments. This calculator models the standard EMI repayment structure; check with your specific lender if you want a bullet repayment option instead.
The [Personal Loan EMI Calculator](/personal-loan-emi-calculator-india/) calculates EMI for an unsecured loan based purely on the amount, rate, and tenure you specify, while this Gold Loan Calculator first determines your loan eligibility from your gold's value and LTV ratio, then calculates EMI on that eligible amount.
Lenders may apply a slightly different gold valuation method, processing fees, or a different LTV ratio than the maximum allowed, all of which can shift the final approved amount and EMI from this calculator's estimate. Use this as a planning estimate and confirm exact figures with your specific lender.
A gold loan lets you access funds while retaining ownership of your gold, which you get back once the loan is repaid — useful if you expect gold prices to rise or simply don't want to part with jewellery with sentimental value. Selling outright gives you the full value immediately but permanently, with no repayment obligation.
Gold loans are typically among the fastest loan types to process, often disbursed within a few hours to a day, since the gold collateral itself substantially reduces the lender's risk and need for extensive credit checks.
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