🇮🇳 India

Gold Loan Calculator India — FY 2025-26

Find out how much loan you can get on your gold jewellery with India's most detailed gold loan calculator. Check eligibility based on weight and purity, compare interest rates across SBI, Muthoot Finance, Manappuram and top banks, and see bullet vs EMI repayment side-by-side. Updated with RBI's revised tiered LTV norms effective April 2026.

grams
Total weight of gold ornaments (excluding stones)
Most Indian jewellery is 22 carat. Check hallmark for exact purity.
Current 24K gold rate per 10 grams (March 2026: ~₹1,50,930)

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How to Use This Calculator

Gold Loan Amount tab

Enter the total weight of your gold ornaments (excluding stones), select the purity (most Indian jewellery is 22 carat — check the BIS hallmark), and verify the current 24K gold price per 10 grams. The calculator shows your gold's market value, the applicable RBI LTV ratio, and the maximum loan you can get — with monthly interest estimates from banks and NBFCs.

Interest Comparison tab

Enter your desired loan amount and tenure. The calculator compares monthly interest and total cost across 5 major lenders — SBI, HDFC Bank, ICICI Bank, Muthoot Finance, and Manappuram — at their minimum advertised rates. Instantly see which lender is cheapest for your scenario.

Bullet vs EMI tab

Enter loan amount, interest rate, and tenure. The calculator shows a side-by-side comparison of bullet repayment (pay interest only each month, repay principal as lump sum at end) vs EMI (equal monthly instalments). See the monthly payment difference, total interest saved, and cash flow impact of each option.

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Every input is encoded in the URL. Click Share to send your exact scenario to a friend, jeweller, or save it for later.

The Formula

Gold loan eligibility is determined by the market value of your gold and the RBI-mandated Loan-to-Value (LTV) ratio:

Gold Valuation:
Gold Value = Weight (grams) × Price per gram of 24K gold × Purity Factor

Purity Factors:
24 Carat = 1.000, 22 Carat = 0.916, 20 Carat = 0.833, 18 Carat = 0.750

Maximum Loan (RBI tiered LTV, effective April 2026):
Loans up to &rupee;2.5 lakh: Max Loan = Gold Value × 85%
Loans &rupee;2.5–5 lakh: Max Loan = Gold Value × 80%
Loans above &rupee;5 lakh: Max Loan = Gold Value × 75%

Bullet Repayment (interest-only):
Monthly Interest = Principal × (Annual Rate / 12 / 100)
Total Interest = Monthly Interest × Tenure (months)
Total Payable = Principal + Total Interest

EMI Repayment:
EMI = P × r × (1+r)n / [(1+r)n − 1]
Where P = principal, r = monthly rate, n = tenure in months

Lenders calculate the gold value using their own benchmark rate (typically close to but not exactly the spot price). The weight excludes stones and non-gold components. Only hallmarked gold of minimum 18 carat purity is accepted.

Example

Meena — Chennai homemaker, needs &rupee;5 lakh for daughter's medical college fees

Meena has 50 grams of 22-carat gold jewellery. She needs a quick loan of &rupee;5 lakh for one year. Let's calculate her gold loan eligibility and compare repayment options.

Step 1: Gold valuation

Gold weight50 grams
Purity22 carat (factor: 0.916)
24K gold price&rupee;1,50,930 per 10g
Gold value50 × 15,093 × 0.916 = &rupee;6,91,259

Step 2: Loan eligibility

RBI LTV (above &rupee;5L)75%
Max loan&rupee;6,91,259 × 75% = &rupee;5,18,444
Meena's loan need&rupee;5,00,000 (within limit)

Step 3: Repayment comparison (&rupee;5 lakh at 10.9% for 12 months)

Bullet: monthly interest&rupee;4,542
Bullet: total interest&rupee;54,500
Bullet: lump sum at end&rupee;5,00,000
EMI: monthly payment&rupee;44,209
EMI: total interest&rupee;30,508
Interest saved with EMI&rupee;23,992

Meena's 50g of 22K gold qualifies her for over &rupee;5 lakh. She chooses bullet repayment at &rupee;4,542/month because she plans to repay the principal from her husband's annual bonus. If she had steady monthly income, EMI would save her &rupee;24,000 in interest.

FAQ

The RBI revised gold loan LTV norms effective April 2026 with a tiered structure. For loans up to &rupee;2.5 lakh, the maximum LTV is 85%. For loans between &rupee;2.5–5 lakh, it is 80%. For loans above &rupee;5 lakh, the cap remains at 75%. Previously, a uniform 75% LTV applied to all gold loans. This means on gold worth &rupee;1 lakh, you can now borrow up to &rupee;85,000 for smaller loan amounts. These limits apply to all regulated entities — banks, NBFCs, and cooperative financial institutions.
Lenders accept gold ornaments of minimum 18 carat purity (75% gold content). Most Indian jewellery is 22 carat (91.6% pure), which is the standard for gold loans. 24 carat gold coins issued by banks are also accepted, but coins above 50 grams are typically not eligible. The weight of stones, meenakari work, and non-gold components is deducted during valuation. Always check the BIS hallmark on your jewellery — it indicates exact purity. Gold without hallmark may still be accepted after assayer testing, but at a conservative valuation.
Bullet repayment means you pay only the interest each month and repay the entire principal as a lump sum at the end of the tenure. Monthly outflow is low (just interest), but you need the full principal amount at maturity. EMI repayment means equal monthly instalments that include both principal and interest, similar to a home loan EMI. Monthly payment is higher, but total interest paid is lower because the outstanding principal reduces each month. Bullet is popular among farmers, traders, and people expecting a lump sum (bonus, property sale). EMI is better for salaried individuals with regular income. Most gold loan lenders offer both options.
Most gold loan lenders charge zero prepayment or foreclosure penalty. This is one of the key advantages of gold loans over personal loans or other unsecured credit. You can repay the loan before the tenure ends, collect your gold, and only pay interest for the period you actually used the loan. SBI, Muthoot, Manappuram, and most banks do not charge any foreclosure fee. However, always confirm with your specific lender and read the loan agreement — some schemes with very low rates may have a lock-in period of 1–3 months.
Banks (SBI, HDFC, ICICI) offer lower interest rates (8.75–14% p.a.) and higher security for your gold but require more documentation and typically disburse in 1–2 days. NBFCs (Muthoot Finance, Manappuram) charge higher rates (7.5–24% p.a.) but offer lightning-fast disbursal — often within 30 minutes with minimal paperwork. NBFCs also have more branches in semi-urban and rural areas. For planned expenses with time to prepare, banks are cheaper. For emergencies where you need cash today, NBFCs are unbeatable. Compare total cost over your planned tenure, not just the headline rate — processing fees, valuation charges, and actual applicable rate (not just the minimum advertised rate) matter.

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