Gold Loan Calculator
A gold loan lets you unlock the value of idle gold jewellery or coins without selling them. Lenders assess your gold, apply a loan-to-value (LTV) ratio capped at 75% by the RBI, and disburse the loan within hours. This calculator converts your gold weight and purity into a market value, applies your lender's LTV, and computes the monthly EMI and total interest — so you can compare lenders before you walk in.
- Principal
- Interest
- Gold market value
- $165,000.00
- Monthly EMI
- $10,908.39
- Total interest
- $7,150.68
- Total repayment
- $130,900.68
Your 20g of 22K gold is worth approximately 165000 at the entered rate. At 75% LTV (RBI April 2026 cap) you can borrow up to 123750, repaying 10908/month for 12 months.
What this calculator tells you
Shows the lender's two-step valuation process — purity conversion then LTV application — so you can see exactly how much value your specific gold grade unlocks versus a simpler tool that just asks for "loan amount". Also surfaces the RBI 75% LTV cap so borrowers know their legal maximum before they negotiate.
Frequently asked questions
How is gold loan LTV calculated?+
LTV (loan-to-value) is the loan amount divided by the market value of the gold, expressed as a percentage. RBI has capped gold loan LTV at 75% for all scheduled commercial banks and NBFCs regulated by RBI since 2020. If your gold is worth ₹1,00,000, the maximum loan is ₹75,000.
Which purity does the lender use for valuation?+
Lenders use the net gold content after deducting for stones, impurities, and making charges. BIS-hallmarked jewellery is assessed at its stamped purity. Non-hallmarked gold is typically assayed using a touchstone or XRF machine at the branch. Always check which purity the lender will use before applying.
Is a gold loan better than a personal loan?+
Gold loans are typically cheaper (7–14% versus 11–24% for personal loans), disbursed faster (same day in most cases), and require no credit score check. The main risk is that if you default, the lender auctions your gold. Personal loans leave your assets free but cost more.
What happens if I cannot repay my gold loan?+
Lenders must issue a statutory notice and wait for a prescribed period (varies by state and lender type) before auctioning the gold. After auction, if the proceeds exceed the outstanding loan plus costs, the surplus is returned to you. If proceeds are insufficient, you remain liable for the shortfall.
Can I get a gold loan on gold coins?+
Yes, but most banks and NBFCs restrict coins to those sold by the bank itself (e.g., SBI Gold Coins, MMTC coins) up to a weight limit — typically 50 grams. Privately purchased gold coins may not be accepted or may face a lower LTV.
What is the current gold rate I should use?+
Use the IBJA (India Bullion and Jewellers Association) rate for the day you are applying. It is published daily at ibja.co. Bank and NBFC websites also display their assessment rates. The calculator default of ₹9,000/gram is approximate for June 2026 — always override it with the current rate.
How it works
The calculator follows three steps that mirror what the lender's gold appraiser does.
First, it converts carats to purity: 24K gold is 99.9% pure, 22K is 91.6% (22÷24), and 18K is 75%. It multiplies your gold's weight by the purity fraction and by today's market rate per gram to get the gross market value. Indian gold rates are quoted as 10g prices by the India Bullion and Jewellers Association (IBJA); divide that by 10 to get the per-gram rate.
Second, the eligible loan is the market value multiplied by the LTV ratio. The Reserve Bank of India capped this at 75% for all banks and NBFCs in 2020, so the maximum you can borrow is ₹75 for every ₹100 of gold value. Some lenders apply lower LTVs (60–70%) depending on the jewellery type or their risk policy.
Third, the EMI is a standard reducing-balance calculation — the same formula used for home and personal loans.
Step 1 — Market value: Value = Weight (g) × (Carats ÷ 24) × Rate per gram. Step 2 — Eligible loan: Loan = Value × LTV ÷ 100. RBI caps LTV at 75% for banks and NBFCs. Step 3 — Monthly EMI: EMI = Loan × [r × (1 + r)^n] ÷ [(1 + r)^n − 1], where r = annual rate ÷ 12 ÷ 100 and n = tenure in months. Total interest = (EMI × n) − Loan.
Worked example
You have 20 grams of 22K gold. At a gold rate of ₹9,000/g, the 22K purity factor is 22÷24 = 0.9167. Market value = 20 × 0.9167 × 9,000 = ₹1,65,000 (approximately). At 75% LTV, eligible loan = ₹1,23,750. At 10.5% per annum for 12 months, the monthly rate r = 10.5÷12÷100 = 0.00875. EMI = 1,23,750 × [0.00875 × (1.00875)^12] ÷ [(1.00875)^12 − 1] ≈ ₹10,916 per month. Total repayment = ₹1,30,992 and total interest = ₹7,242.
Edge cases & caveats
Gold ornaments with heavy stone settings or enamel work are assessed only on their gold content — the stones and other materials are ignored. Hallmarked BIS jewellery gets a more accurate assay than non-hallmarked gold, which many lenders discount further. Bullet-repayment loans (interest-only during the tenure, principal at the end) have no monthly EMI — set the tenure to 1 month to approximate the interest cost on a bullet structure. If you hold the gold beyond the tenure without paying, the lender can auction it after issuing a statutory notice.
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Disclaimer: This calculator is for educational and informational purposes only and provides estimates, not financial advice. Interest rates, taxes, fees, and local rules vary and change over time. Confirm figures with a qualified professional before making any financial decision.
Last reviewed: 2026-06-29