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Gold Loan Calculator
Estimate your EMI and interest payout against gold jewellery collateral. Adjust any input below and your results update instantly.
Understanding gold loans
The concept, the motivation, and what to watch out for.
Your loan amount isn't a number you pick — it's capped by what your gold is worth
A gold loan's eligible amount comes from your gold's actual value — its weight, purity, and today's market rate — multiplied by a Loan-to-Value (LTV) ceiling the RBI sets. Since April 2026, that ceiling is no longer a flat 75% for everyone: smaller loans now get a more generous cap, while larger loans keep the traditional 75% limit.
How you repay matters just as much as how much you borrow — a regular EMI steadily pays down both principal and interest, while a bullet repayment defers the entire principal to the very last month, paying only interest along the way. This calculator models both.
Karat matters as much as weight
22K jewellery is only about 91.7% pure gold — lenders value it on actual gold content, not the weight of the item alone.
The LTV cap is now tiered, not flat
Smaller loans (up to ₹2.5 lakh) can now borrow up to 85% of gold value; larger loans above ₹5 lakh are still capped at 75%.
How this calculator helps
Enter your gold's weight, purity, and rate — see your eligible loan amount, and compare EMI against bullet repayment side by side.
Calculate your gold loan
Fill in the starred fields on the left — your results update instantly on the right.
Your details
e.g. 22K (91.7% pure), typical for jewellery
Bullet repayment
Off models a regular EMI schedule instead.
e.g. 50 grams
e.g. ₹14,650/gram
e.g. 10.5% (a typical bank rate)
e.g. 12 months
e.g. 0.5%
These are example numbers. Edit any input on the left to see your own.
Your eligible loan amount
₹5.04 L
75% LTV against ₹6.71 L gold value
Gold value
₹6.71 L
Total interest
₹29,099
₹44,391/month EMI for 12 months. Net disbursal after fees: ₹5.01 L.
Balance vs. interest paid
BalanceCumulative interest
Month-by-month repayment
Balance steadily declines every month as your EMI pays down principal alongside interest.
MonthBalanceInterest paidStatus
1₹4.64 L₹4,406
8% principal repaid
8% repaid
3₹3.83 L₹12,167
24% principal repaid
24% repaid
5₹3.00 L₹18,503
40% principal repaid
40% repaid
7₹2.16 L₹23,390
57% principal repaid
57% repaid
9₹1.31 L₹26,802
74% principal repaid
74% repaid
11₹44,006₹28,714
91% principal repaid
91% repaid
12₹0₹29,099
100% principal repaid
100% repaid
Compare scenarios
See how repayment type or a longer tenure changes your total interest.
Your plan
EMI · 12mo
₹29,099
Total interest
Baseline
Bullet instead
Same amount & tenure
₹52,877
Total interest
+₹23,778
18 months instead
6 months longer
₹42,894
Total interest
+₹13,795
Worked example, using your numbers
A step-by-step walkthrough from your gold's value to your loan terms.
Step 1 · Gold value
50g at 22K purity is worth
₹6.71 L
Step 2 · Eligible loan amount
At the 75% LTV tier that applies, you can borrow
₹5.04 L
Step 3 · Total interest
Over 12 months at 10.5%, you’ll pay
₹29,099
✓
Your ₹5.04 L gold loan costs a total of ₹29,099 in interest over 12 months.
Personalised insights
What your numbers reveal, and what changing them would do.
Your gold is worth ₹6.71 L, but you can only borrow ₹5.04 L
At the 75% LTV tier that applies to a loan this size, ₹1.68 L of your gold's value stays outside what you can borrow against.
Choosing bullet repayment instead would cost ₹23,778 more in interest
Bullet repayment defers your entire principal to the last month, so every month accrues interest on the FULL amount instead of a shrinking balance.
₹2,518 processing fee is deducted upfront
On a ₹5.04 L loan, your net disbursal after this one-time fee is ₹5.01 L.
Extending to 18 months would add ₹13,795 in interest
A longer tenure spreads repayment out, but interest keeps accruing for those extra months — worth weighing against how much smaller each instalment becomes.
How this is calculated
Every step of the math behind your result, shown in the open.
Gold value, from weight and purity
W = gold weight in grams, R = the 24K market rate per gram, K = your gold's karat, Value = the gold's actual market worth
Karat scales the pure-gold rate down to what your jewellery is actually worth — 22K jewellery is valued at only 22/24ths of the 24K rate.
Example: 50g × ₹14,650 × 22/24 → ₹6.71 L
Eligible loan amount, from the tiered LTV cap
LTV% = 85%/80%/75% depending on which loan-size tier applies, Loan = the maximum amount you can actually borrow
The applicable LTV percentage depends on the loan amount itself — smaller loans get a more generous cap under the tiered structure effective April 2026.
Example: ₹6.71 L × 75% → ₹5.04 L
EMI vs. bullet repayment
EMI = equal monthly instalments covering principal and interest together, Bullet = interest-only monthly payments with the full principal due at maturity
Both repay the same principal and accrue interest at the same rate, but bullet repayment always costs more in total interest since none of the principal shrinks early.
Example: ₹5.04 L over 12 months → ₹44,391/month EMI
Assumptions
- The LTV tier is resolved by finding the most generous tier whose own resulting loan amount still fits inside that tier's ceiling — exact resolution mechanics can vary slightly by lender.
- Gold value assumes no wastage or making-charge deduction some lenders apply on jewellery — actual eligible value may be somewhat lower.
- LTV is monitored only at disbursal here — this doesn't model a margin call if gold prices fall during the tenure.
- Figures are indicative — not financial advice.
Did you know?
A few facts behind how gold loans are valued and repaid.
April 2026
The flat 75% cap is brand new history
Until this year, every gold loan in India was capped at 75% LTV regardless of size — the tiered structure giving smaller loans up to 85% took effect on 1 April 2026.
91.7%
22K gold is what almost all Indian jewellery is made of
Most gold jewellery in India is crafted in 22 karat, not 24 — pure 24K gold is too soft to hold intricate designs, so 22K (91.7% pure) is the default for ornaments lenders see.
Ongoing
LTV compliance doesn't stop at disbursal
Lenders now have to keep checking that your outstanding loan stays within the permitted LTV against your gold's CURRENT value for the entire tenure — not just on the day you took the loan.
Bullet
The 'pay later' option almost always costs more
Because bullet repayment never reduces the principal until the final month, it always accrues more total interest than an EMI schedule for the identical loan amount, rate, and tenure.
6-36
Gold loans are built to be short
Unlike home or car loans that can run for decades, gold loan tenures typically max out at 3 years — reflecting their role as a quick, short-term source of funds against an asset you already own.
Frequently asked questions
Straight answers to the questions we hear most about gold loans.
Why is my eligible loan amount less than my gold's full value?
The RBI caps how much of your gold's value a lender can advance as a loan — the Loan-to-Value (LTV) ratio. Since April 2026, this ranges from 85% (loans up to ₹2.5 lakh) down to 75% (loans above ₹5 lakh), replacing the earlier flat 75% cap for everyone.
Does the karat of my gold actually change my loan amount?
Yes, significantly. Lenders value your gold on its actual pure-gold content, not just its weight — 22K jewellery (91.7% pure) is worth noticeably less than the same weight in 24K gold, and 18K (75% pure) less still.
What's the difference between EMI and bullet repayment?
An EMI schedule pays down both principal and interest every month, the same way a home or car loan works. A bullet repayment schedule only requires monthly interest payments, with the entire principal due in one lump sum at the end of the tenure — common for short-term gold loans, but always costlier in total interest since the principal never shrinks early.
Can my lender ask for more gold or repayment if gold prices fall?
Yes — lenders are now required to monitor the LTV ratio throughout the loan tenure, not just when it's sanctioned. If gold prices drop enough that your outstanding loan exceeds the permitted LTV against your gold's current value, you may be asked to pledge more gold or repay part of the loan.
Is a bank or an NBFC better for a gold loan?
Banks typically offer lower interest rates (roughly 8-10%) but can be stricter on documentation and processing time. NBFCs like Muthoot or Manappuram often charge more (sometimes into the 20s), but disburse faster with simpler paperwork — the right choice depends on how urgently you need the funds versus how much the extra interest costs you.
What happens if I can't repay my gold loan?
After a grace period specified in your loan agreement, the lender has the right to auction your pledged gold to recover the outstanding amount. This is why gold loans are considered relatively low-risk for lenders, and why they're usually approved faster and with fewer documents than unsecured loans.
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Learn more
Articles to go deeper on the ideas behind this calculator.
Fundamentals
RBI's tiered gold loan LTV rules, explained
What changed in April 2026, and why smaller loans now get a bigger ceiling.
4 min read
Strategy
EMI vs. bullet repayment for gold loans
Why the 'pay later' option almost always costs more in total interest.
4 min read
Strategy
What happens if gold prices fall during your loan
Margin calls, LTV monitoring, and what a lender can actually ask of you.
5 min read