A gold loan lets you borrow against pledged jewellery without selling it.
About this calculator
A gold loan lets you borrow against pledged jewellery without selling it. The lender values your gold at the day's rate, applies a loan-to-value (LTV) cap, and disburses cash. RBI limits bank LTV to 75% of jewellery value. NBFCs like Muthoot and Manappuram may go higher but often charge more.
This gold loan calculator starts from weight, purity, and the 24K rate to find jewellery value, then applies your LTV to get the eligible loan. Pick a repayment scheme: EMI for equal monthly payments, bullet for a single maturity payout, or monthly-interest when you pay interest each month and principal at the end.
On 40g of 22K gold at ₹7,200/g with 75% LTV, jewellery value is about ₹2.64L and the eligible loan is roughly ₹1.98L. At 12% for 12 months on EMI, that works out to about ₹17,600/month with ₹13,200 in total interest. The same loan on a bullet scheme costs zero monthly but ₹2.12L at maturity. Compare with the [[emi]] calculator for any flat principal, or the [[personal-loan-calc]] if you have no gold to pledge.
Common uses
- Checking how much loan 50g of 22K family jewellery fetches at 75% LTV before visiting the bank
- Comparing bullet vs EMI on a ₹2L gold loan from an NBFC at 14% for 6 months
- Estimating monthly interest on a 3-month jewellery loan when you plan to repay principal from a bonus
- Seeing whether a gold loan at 10% beats a [[personal-loan-calc]] at 14% on the same amount
Frequently asked questions
How much loan can I get on 40g of 22K gold?
At ₹7,200/g for 24K, 22K value is about ₹2.64L (40g × 22/24 × 7200). At 75% LTV the eligible loan is roughly ₹1.98L. Actual disbursal may be lower after stone weight deduction and lender valuation.
What is the EMI on a ₹2 lakh gold loan at 12% for 12 months?
EMI is about ₹17,800/month. Total repayment is roughly ₹2.13L, of which ₹13,000 is interest. Bullet repayment on the same loan costs zero monthly but ₹2.12L at maturity.
What is LTV on a gold loan?
LTV is the loan amount as a percentage of jewellery value. RBI caps bank gold loans at 75%. If your gold is valued at ₹3L, a 75% LTV loan is ₹2.25L. NBFCs sometimes offer 80-85% but charge higher rates.
What is the difference between bullet and EMI gold loans?
EMI spreads principal and interest into equal monthly payments. Bullet charges interest on the full principal for the tenure and asks for principal plus interest in one payment at maturity. Bullet suits short-term needs; EMI suits salaried borrowers who want fixed monthly outflow.
Is gold loan interest cheaper than a personal loan?
Usually yes. Bank gold loans run 9-12% while personal loans start around 11-14%. On ₹2L for 12 months, a 10% gold loan saves about ₹2,000-4,000 in interest vs a 14% personal loan. You must pledge jewellery and repay on time to avoid auction risk.
What happens if I miss a gold loan payment?
Lenders send reminders first, then apply penal interest of 2-3% on the overdue amount. After 90 days of default, the lender can auction pledged gold under the SARFAESI process. Most NBFCs allow renewal by paying accrued interest before auction.