Gold Loan Calculator
Calculate your gold loan eligible amount based on gold weight, purity, and current market price. See EMI, total interest, and monthly repayment breakdown.
Gold Details
Total weight of gold jewellery/coins
22K is standard Indian jewellery
Current market price per gram of 24K gold
RBI mandates max 75% LTV for gold loans
Muthoot: 9.5%, SBI: 8.5%, Manappuram: 10.5%
Gold loans typically have 3-36 month tenures
Eligible Loan Amount
₹0
75% of gold value
Monthly EMI
₹0
12 month tenure
Gold Market Value
₹0
50g at 22K
Total Interest
₹0
Over full tenure
Total Repayment
₹0
Principal + Interest
Processing Fee
₹0
Estimated 1% of loan
Payment Breakup
Gold is auctioned if you default
If you fail to repay the gold loan or renew it before the tenure ends, the lender has the right to auction your gold jewellery to recover the outstanding amount. Unlike other loan types where recovery proceedings take months, gold loan auction can happen within 15-30 days of default. Always keep track of your renewal dates and ensure timely repayment.
Source: RBI Master Circular on Gold Loans
Related Calculators
Gold Loan Calculator: Complete Guide for Indian Borrowers
Gold loans are among the fastest and most accessible forms of secured credit in India. With over 25,000 tonnes of gold held by Indian households, this asset class represents a massive pool of dormant wealth that can be mobilised for immediate financial needs. Whether you need funds for a medical emergency, business cash flow, or agricultural expenses, a gold loan offers quick disbursal (often within 30 minutes), competitive interest rates, and minimal documentation.
How Gold Loans Work in India
A gold loan is a secured loan where you pledge your gold jewellery or coins as collateral. The lender assesses the purity and weight of your gold, calculates the current market value, and lends you a percentage of that value (the Loan-to-Value or LTV ratio). As per RBI guidelines, the maximum LTV for gold loans is 75%, meaning you can borrow up to 75% of your gold's market value. The gold remains in the lender's custody until the loan is fully repaid. Once repaid, the gold is returned to you.
Gold Purity and Its Impact on Loan Amount
The eligible loan amount depends heavily on the purity of your gold. Indian jewellery is typically 22 karat (91.6% pure gold), while coins are often 24 karat (99.9% pure). The lender calculates the pure gold content by multiplying the gross weight by the purity factor. For example, 50 grams of 22K gold contains 45.8 grams of pure gold. At a gold price of 7,500 per gram (24K), the market value would be approximately 3,43,500, and the maximum loan at 75% LTV would be 2,57,625.
Interest Rate Comparison Across Lenders
Gold loan interest rates in India vary significantly across lenders. SBI and other public sector banks typically offer the lowest rates at 8-10% per annum. NBFCs like Muthoot Finance (9.5-12%) and Manappuram (10-14%) charge slightly more but offer faster processing and more branches. The effective interest rate also depends on the repayment scheme: EMI-based loans have a fixed rate, while bullet repayment loans (where you pay only interest monthly and repay principal at maturity) may have different pricing.
Repayment Options for Gold Loans
Gold loans offer flexible repayment structures. The most common are: (1) EMI repayment, where you pay a fixed monthly amount covering principal and interest; (2) Bullet repayment, where you pay only interest monthly and the entire principal at the end of the tenure; (3) Partial release, where you can release portions of your gold by making partial repayments; and (4) Overdraft facility, where the loan works like a credit line and you pay interest only on the utilised amount. Each structure has different cost implications, and the EMI option typically results in the lowest total interest outgo.
Frequently Asked Questions
What is the maximum LTV ratio for gold loans?
The RBI mandates a maximum Loan-to-Value ratio of 75% for gold loans. This means you can borrow up to 75% of the gold's current market value. Some lenders may offer lower LTV ratios (60-70%) at lower interest rates. During periods of gold price volatility, lenders may reduce the LTV further to protect against value fluctuations.
What happens if gold prices fall after I take a gold loan?
If gold prices drop significantly after you take a gold loan, the lender may issue a margin call, asking you to either pledge additional gold or make a partial repayment to restore the LTV ratio. If you fail to do so, the lender has the right to liquidate a portion of your gold. This is more common with high LTV loans taken near gold price peaks.
Can I get a gold loan on hallmarked jewellery only?
No, hallmarking is not mandatory for gold loans. Lenders have their own assaying process to determine the purity and weight of the gold. However, hallmarked jewellery may receive faster processing since the purity is pre-certified. Some lenders accept only 18K and above purity, while others accept as low as 14K.
Is there a tax benefit on gold loans?
Gold loans do not qualify for any specific tax deduction under the Income Tax Act. However, if the gold loan is used for business purposes, the interest paid can be claimed as a business expense. If used for purchasing a residential property (rare but possible), the interest may qualify under Section 24(b).
How quickly can I get a gold loan?
Gold loans are among the fastest loans to obtain. NBFCs like Muthoot and Manappuram can disburse within 30-45 minutes after gold assessment. Banks typically take 1-2 hours to a day. The documentation required is minimal: KYC documents (Aadhaar, PAN) and the physical gold. No income proof or credit score check is needed, making gold loans accessible to virtually anyone who owns gold.