Gold Loan Calculator — EMI, Interest & Eligible Loan Amount
Calculate gold loan EMI, total interest, and loan amount based on gold weight and purity. Compare lenders, understand LTV ratio, and bullet repayment vs EMI.
Gold loans are one of the fastest ways to access cash in India — you walk in with jewellery, the lender weighs and tests it, and you walk out with money in an hour. No income proof, no credit check (usually), no lengthy processing. For emergencies or short-term cash crunches, nothing beats it.
Use the CalcHub Gold Loan Calculator to estimate how much loan you can get and what it will cost you.
How Gold Loan Amount Is Calculated
Banks and NBFCs lend a percentage of your gold's market value — called the Loan-to-Value (LTV) ratio. RBI has set the maximum LTV at 75% for banks and NBFCs.
Purity factors: 24 carat = 1.0, 22 carat = 0.9167, 18 carat = 0.75 Example: 50g of 22-carat gold, gold rate ₹7,200/gram:Eligible Loan = Weight (grams) × Purity factor × Gold market rate × LTV%
- Pure gold equivalent = 50 × 0.9167 = 45.8 grams
- Gold value = 45.8 × ₹7,200 = ₹3,29,760
- Max loan at 75% LTV = ₹2,47,320
Gold Loan Per Gram (Indicative Rates — March 2026)
| Gold Rate (₹/g for 24k) | 22k Gold — Loan per gram (75% LTV) | 18k Gold — Loan per gram |
|---|---|---|
| ₹7,000 | ₹4,813 | ₹3,938 |
| ₹7,200 | ₹4,950 | ₹4,050 |
| ₹7,500 | ₹5,156 | ₹4,219 |
| ₹8,000 | ₹5,500 | ₹4,500 |
Repayment Options
EMI (equated monthly instalments): Regular principal + interest payments monthly. Best for medium-term loans (6–24 months). Predictable and reduces outstanding balance. Bullet repayment: Pay only interest every month, repay the full principal at the end. Lower monthly outgo but no principal reduction. Good if you're waiting for a lump sum (asset sale, maturity proceeds, etc.). Overdraft (OD) mode: Some lenders offer a gold loan as an overdraft — you withdraw as needed and pay interest only on the amount used. Good for business owners with fluctuating cash flow needs.EMI Table — ₹2,50,000 Gold Loan
| Interest Rate | 6 Months | 12 Months | 18 Months | 24 Months |
|---|---|---|---|---|
| 8.0% | ₹42,772 | ₹21,697 | ₹14,644 | ₹11,325 |
| 10.0% | ₹43,124 | ₹21,981 | ₹14,932 | ₹11,614 |
| 12.0% | ₹43,479 | ₹22,243 | ₹15,221 | ₹11,905 |
| 15.0% | ₹44,015 | ₹22,624 | ₹15,669 | ₹12,370 |
Major Gold Loan Lenders
| Lender | Interest Rate | Max Tenure | Per Gram Rate (22k) |
|---|---|---|---|
| Muthoot Finance | 12–26% | 36 months | Up to ₹5,000 |
| Manappuram Gold Loan | 12–29% | 12 months | Up to ₹5,100 |
| SBI Gold Loan | 8.0–8.75% | 36 months | Up to ₹5,200 |
| HDFC Bank | 9.50–17% | 24 months | Up to ₹5,000 |
| IIFL Gold Loan | 11.88–27% | 11 months | Up to ₹4,900 |
When Gold Loan Makes Sense
- Medical emergency: Need ₹1–5 lakh in hours, not days
- Business working capital: Short-term cash gap between receivables
- Bridge loan: Waiting for property sale or investment maturity
- Avoiding personal loan rates: If you'd otherwise pay 18–24% on a personal loan, even a 12% gold loan is cheaper
What Happens If You Can't Repay?
If EMIs are missed, lenders first send notices. After the tenure, they have the right to auction the pledged gold. Most lenders prefer extending the loan or restructuring before it comes to that — but they will auction if necessary. You won't get blacklisted like a personal loan default (no negative credit impact since it's secured), but you lose the jewellery.
Does the lender keep my gold safely?
Regulated lenders (banks, RBI-registered NBFCs) are required to store pledged gold in secured vaults. Banks store it in their branch lockers. You get a receipt/acknowledgement specifying the weight and purity. Ensure you're using an RBI-regulated lender — avoid unlicensed moneylenders.
Is interest on a gold loan tax-deductible?
If the gold loan is used for business purposes, the interest is deductible as a business expense. For personal use (medical, education, etc.), no deduction is available. Some argue that if the funds are used for investment purposes, it can qualify — consult a CA for specific cases.
Can I get a gold loan with mixed purity jewellery?
Yes — lenders assess each piece separately. A set with 22-carat necklace and 18-carat bangles will be valued differently per piece, and the total loan is calculated on the aggregate value. Melting and mixing happens during assessment.
Related Calculators
- Personal Loan EMI Calculator — compare with unsecured option
- Home Loan EMI Calculator — larger secured loan
- Loan EMI Calculator — general EMI computation
- SWP Calculator — liquidate investments instead