Gold Loan Calculator

A Gold Loan Calculator estimates the eligible loan amount you can get by pledging your gold jewelry, along with monthly EMI payments, interest outgo, and total repayment costs based on gold weight, purity, rate, LTV, and tenure.

RBI caps the Loan-to-Value (LTV) ratio at 75% of the gold's market value. If your jewelry is valued at ₹1,00,000, banks can offer a maximum loan amount of ₹75,000.

Valuation is based on the weight of net gold (excluding weight of stones/beads) multiplied by the current purity factor (Karats / 24) and the average gold rate of 24K gold of the last 30 days.

Pledged ornaments are kept in secure, vault-like lockers of the bank. The bank is fully responsible for the safety of your gold until the loan is completely repaid and ornaments are returned.

Gold loans offer flexible repayment modes: 1) Monthly EMIs (reducing balance principal + interest), 2) Interest payment monthly/quarterly with principal repaid at maturity, and 3) Bullet repayment (entire principal + interest paid in one shot at tenure end).

Most banks and gold loan NBFCs require the gold to be at least 18 Karats in purity. Gold bars or coins of 24 Karats are also accepted up to a maximum weight cap (typically 50 grams per customer).

If gold prices drop significantly, the LTV ratio may exceed the RBI cap. In such cases, the bank will ask you to pay the difference in cash or pledge additional gold to restore the LTV. Failure to comply can result in bank auctioning your gold.

Yes, most lenders permit early closure or part-prepayments on gold loans. Many banks and NBFCs charge zero prepayment penalty, making gold loans ideal for short-term emergency liquidity.

If you fail to repay the loan principal or interest within the agreed tenure (plus a bank grace period), the bank has the legal right to auction your pledged gold to recover the outstanding balance. Any surplus funds from the auction are returned to the borrower.

Gold loans are secured loans, so they have lower interest rates (7-12% p.a. vs 10.5-20% for personal loans), require minimal documentation, and are approved within hours. They are better if you have gold collateral. Personal loans are better if you don't want to pledge gold.