| Month | Principal | Interest | Balance |
|---|
Use this free gold loan calculator to find out how much loan you can get against your gold, what your monthly EMI will be, and how much total interest you will pay. Works for both 22 karat and 24 karat gold. Enter your gold weight in grams or enter the loan amount you need and the calculator works backwards to tell you exactly how much gold is required. Updated to reflect the new RBI 2026 gold loan LTV rules effective April 2026.
What This Gold Loan Calculator Does
Most gold loan calculators are built by lenders trying to get you to apply for their product. This calculator is built for you. It is neutral, transparent and gives you the full picture before you walk into any bank or NBFC.
8 things this calculator does that most competitors skip:
1. Two modes in one tool: by gold weight or by loan amount If you know how many grams of gold you have, enter the weight and get the maximum loan amount. If you know how much money you need, enter the target loan amount and get told exactly how many grams of gold are required. No other free calculator in India offers both directions in one tool.
2. Live-editable gold price per gram Gold prices change every day. The calculator lets you set the current gold price per gram for both 22K and 24K separately. Today (13 March 2026), 22K gold is trading at approximately Rs.14,869 per gram and 24K gold at approximately Rs.16,221 per gram. Update the price field daily for the most accurate loan estimate.
3. Adjustable LTV ratio including new 2026 RBI rules From April 2026, the RBI has introduced tiered LTV ratios: 85 per cent for loans up to Rs.2.5 lakh, 80 per cent for loans between Rs.2.5 lakh and Rs.5 lakh, and 75 per cent for loans above Rs.5 lakh. The calculator lets you set the LTV manually so you can calculate eligibility under any of these three slabs.
4. Reducing balance vs flat rate comparison Most borrowers do not understand the difference between flat rate and reducing balance interest. This calculator shows both clearly. The reducing balance EMI (the standard for most gold loans) will always be lower than a flat rate calculation on the same loan amount. See both numbers side by side.
5. Full month-by-month repayment schedule The calculator generates a complete repayment table showing principal repaid, interest charged and outstanding balance for every single month of your loan tenure. Download it as CSV to plan your cash flow.
6. Bullet repayment mode Many NBFC gold loans (Muthoot, Manappuram, IIFL) use bullet repayment where you pay only interest during the tenure and repay the full principal at the end. The calculator handles this mode separately so you can see exactly what a bullet repayment plan costs versus a standard EMI plan.
7. Processing fee inclusion Enter your lender’s processing fee percentage and the calculator includes it in the total cost of borrowing, giving you the true all-in cost and not just the headline EMI.
8. Shareable plan and CSV download Generate a personalised shareable link to send to family members, or download the full repayment schedule as CSV for offline use.
What Is a Gold Loan?
A gold loan is a secured loan where you pledge your gold jewellery, coins or bars as collateral and receive a cash loan based on the current market value and purity of the gold. Because the loan is secured against a physical asset, banks and NBFCs can offer it quickly and at interest rates significantly lower than unsecured personal loans.
Gold loans are the go-to financial tool in India for: Short-term cash needs and emergencies. Business working capital, especially for traders and farmers with seasonal income cycles. Medical expenses requiring fast access to funds. School and college fee payments. Household repairs or renovations.
The key advantage of a gold loan over a personal loan is speed. Most gold loans are disbursed within 30 minutes to a few hours after gold valuation. There is no need for a credit score check in most cases, particularly for loans below Rs.2.5 lakh under the new RBI 2026 rules.
How Gold Loan Amount Is Calculated: The Complete Formula
Understanding the calculation removes all confusion about what you will actually receive.
Step 1: Find the gross gold value Gross Gold Value = Gold Weight (grams) x Current Market Price per gram x Purity Factor
Purity factors:
- 24 karat (99.9% pure): purity factor = 1.0
- 22 karat (91.6% pure): purity factor = 0.916
- 18 karat (75% pure): purity factor = 0.75
Step 2: Apply the LTV ratio Maximum Loan Amount = Gross Gold Value x LTV Ratio
LTV ratios as per new RBI guidelines effective April 2026:
- Loans up to Rs.2.5 lakh: LTV up to 85 per cent
- Loans from Rs.2.5 lakh to Rs.5 lakh: LTV up to 80 per cent
- Loans above Rs.5 lakh: LTV up to 75 per cent
Complete worked example using today’s rates (13 March 2026):
Gold pledged: 50 grams of 22 karat jewellery Current 22K gold price: Rs.14,869 per gram Gross gold value: 50 x 14,869 x 0.916 = approximately Rs.6,81,600 Loan amount at 75% LTV: approximately Rs.5,11,200 Loan amount at 80% LTV (if loan is between Rs.2.5L and Rs.5L): approximately Rs.5,45,280
Enter your own weight and gold price in the calculator above to get your specific eligible amount instantly.
Gold Loan EMI: How It Is Calculated
For standard EMI-based gold loans, the monthly EMI is calculated using the same reducing balance formula used for all term loans.
EMI Formula: EMI = P x r x (1 + r) raised to n, divided by [(1 + r) raised to n minus 1]
Where: P = Principal loan amount r = Monthly interest rate (annual rate divided by 12, divided by 100) n = Number of monthly instalments (loan tenure in months)
Worked example: Loan amount: Rs.5 lakh Interest rate: 12 per cent per annum Tenure: 12 months
Monthly rate r = 12 / 12 / 100 = 0.01 EMI = 5,00,000 x 0.01 x (1.01 raised to 12) divided by [(1.01 raised to 12) minus 1] EMI = approximately Rs.44,424 per month Total repayment over 12 months: Rs.5,33,088 Total interest paid: Rs.33,088
Enter your loan amount, rate and tenure in the calculator above to get your exact EMI and repayment schedule.
Gold Loan EMI Examples: Common Scenarios
Rs.2 lakh gold loan EMI
At 12 per cent per annum for 12 months: approximately Rs.17,770 per month At 12 per cent per annum for 24 months: approximately Rs.9,412 per month At 15 per cent per annum for 12 months: approximately Rs.18,065 per month
Rs.5 lakh gold loan EMI
At 10 per cent per annum for 12 months: approximately Rs.43,960 per month At 12 per cent per annum for 12 months: approximately Rs.44,424 per month At 12 per cent per annum for 24 months: approximately Rs.23,537 per month
Rs.5 lakh gold loan interest (total cost)
At 12 per cent per annum for 12 months: approximately Rs.33,000 total interest At 12 per cent per annum for 24 months: approximately Rs.65,000 total interest At 15 per cent per annum for 12 months: approximately Rs.41,500 total interest
Use the calculator above to enter your exact loan amount, rate and tenure to get precise figures.
Bullet Repayment Gold Loan: How It Works and How to Calculate
Many NBFCs including Muthoot Finance, Manappuram Finance and IIFL Finance offer gold loans on a bullet repayment basis. This is fundamentally different from a standard EMI gold loan.
How bullet repayment works:
- You pay only the interest component every month (or quarterly, depending on the scheme)
- The full principal is repaid in one lump sum at the end of the loan tenure
- Bullet repayment tenures are typically capped at 12 months as per RBI guidelines, with renewal option
Bullet repayment calculation formula: Monthly interest payment = Loan Amount x (Annual Interest Rate / 12 / 100)
Bullet repayment example: Loan amount: Rs.3 lakh Interest rate: 12 per cent per annum Tenure: 12 months
Monthly interest payment: 3,00,000 x (12/12/100) = Rs.3,000 per month Total interest over 12 months: Rs.36,000 Final bullet payment (principal): Rs.3,00,000
Total amount paid: Rs.3,36,000
Compared to EMI repayment of the same loan (approximately Rs.26,640 per month for 12 months), total cost is similar. However, the bullet structure requires you to have Rs.3 lakh available as a lump sum at the end of 12 months. If you cannot repay, the lender will auction the pledged gold.
The PlanMyReturns gold loan calculator includes a bullet repayment mode. Toggle it using the repayment type option to compare EMI vs bullet for your specific loan.
How to Calculate Gold Loan Interest Per Month
This is one of the top-searched questions for gold loans in India. Here is the formula and worked examples.
Monthly interest formula: Monthly Interest = Loan Amount x Annual Interest Rate / 12 / 100
Gold loan interest for Rs.1 lakh at various rates:
- At 10% per annum: Rs.833 per month
- At 12% per annum: Rs.1,000 per month
- At 15% per annum: Rs.1,250 per month
- At 18% per annum: Rs.1,500 per month
Gold loan interest for Rs.5 lakh at various rates:
- At 10% per annum: Rs.4,167 per month
- At 12% per annum: Rs.5,000 per month
- At 15% per annum: Rs.6,250 per month
Gold loan interest for a full year on Rs.1 lakh:
- At 10% per annum: Rs.10,000 total interest (simple)
- At 12% per annum: Rs.12,000 total interest (simple)
- At 15% per annum: Rs.15,000 total interest (simple)
Note: These are simple interest figures. Actual EMI-based gold loan total interest is slightly lower than simple interest because the reducing balance method charges interest only on the outstanding principal, which reduces each month as you repay.
RBI Gold Loan Rules 2026: What Has Changed and How It Affects Your Loan
In June 2025, the Reserve Bank of India introduced significant revisions to gold loan regulations that took effect from April 1, 2026. These changes directly affect how much loan you can get against your gold.
New tiered LTV structure (effective April 2026)
The previous uniform 75 per cent LTV cap has been replaced with a three-tier structure:
| Loan amount | Maximum LTV ratio |
|---|---|
| Up to Rs.2.5 lakh | 85 per cent |
| Rs.2.5 lakh to Rs.5 lakh | 80 per cent |
| Above Rs.5 lakh | 75 per cent |
This change is particularly beneficial for small-ticket borrowers. If you need Rs.1 lakh against gold, you can now pledge less gold than before to get the same amount.
No mandatory credit appraisal for loans below Rs.2.5 lakh
Under the new RBI guidelines, lenders are not required to check your credit score for gold loans below Rs.2.5 lakh. This makes gold loans even more accessible for people with limited or no credit history.
Gold must be returned within 7 days of repayment
Lenders are now required by RBI to return pledged gold within 7 working days of full loan repayment. If they delay, they must pay Rs.5,000 per day as compensation to the borrower.
Gold loan proceeds cannot be used to buy gold
The RBI explicitly prohibits using gold loan funds to purchase gold in any form, including jewellery, gold coins, Gold ETFs or Sovereign Gold Bonds.
Gold valuation methodology standardised
Lenders must now value gold using either the 30-day average closing price or the previous day’s IBJA (India Bullion and Jewellers Association) published price, whichever is lower. This protects borrowers from being short-changed on valuation.
Gold Loan LTV Calculator: Understanding LTV in Detail
LTV or Loan to Value ratio is the single most important number in a gold loan. It determines what percentage of your gold’s current market value you can borrow.
LTV calculation example: Gold weight: 100 grams of 22 karat Current 22K gold price: Rs.14,869 per gram Gross gold value: 100 x 14,869 x 0.916 = Rs.13,59,988 (approximately Rs.13.6 lakh)
At 75% LTV: eligible loan = Rs.10,19,991 (approximately Rs.10.2 lakh) At 80% LTV: eligible loan = Rs.10,87,990 (approximately Rs.10.9 lakh) At 85% LTV: eligible loan = Rs.11,55,989 (approximately Rs.11.6 lakh)
Why lenders set LTV below the RBI maximum: RBI sets the maximum permitted LTV. Lenders can and often do lend at lower LTVs for risk management. For example, Manappuram Finance reported an average LTV of approximately 57 per cent across its portfolio as of March 2025, significantly below the maximum. This means the amount you receive at a branch may be lower than what a pure calculation at 75% LTV suggests. Always confirm the actual LTV being offered at your branch before finalising.
Gold Loan Valuation: How Lenders Assess Your Gold
Understanding how lenders value your gold helps you avoid surprises at the branch.
Step 1: Weight measurement The lender weighs your jewellery on a calibrated scale. Only the metal weight counts. Stones, enamel and other non-gold components are excluded.
Step 2: Purity assessment An XRF (X-ray fluorescence) gun or acid test is used to determine the karat value of your gold. Common purities accepted: 24K (99.9%), 22K (91.6%), 18K (75%). Most lenders do not accept gold below 18 karat for loan purposes.
Step 3: Gold value calculation Gold Value = Net Gold Weight x Current Gold Price per gram (as per IBJA or 30-day average, whichever is lower)
Step 4: LTV application Eligible Loan = Gold Value x LTV ratio applicable to your loan amount slab
Important note on jewellery vs coins: Most banks and NBFCs accept gold jewellery, gold bars and BIS-hallmarked gold coins (coins sold by banks). Non-bank gold coins and coins above 50 grams are generally not accepted as collateral. Gold ETFs and digital gold cannot be pledged for a physical gold loan.
Gold Loan vs Personal Loan: Which Is Better?
| Feature | Gold Loan | Personal Loan |
|---|---|---|
| Security required | Gold jewellery as collateral | No security required |
| Interest rate | 8 to 24 per cent per annum | 10 to 36 per cent per annum |
| Processing time | 30 minutes to 2 hours | 1 to 7 days |
| Credit score requirement | Not required for loans below Rs.2.5 lakh (RBI 2026) | Typically CIBIL 700 or above |
| Maximum loan amount | Up to 85 per cent of gold value | Based on income and credit |
| Tenure | 3 to 36 months (bullet: up to 12 months) | 12 to 60 months |
| Prepayment penalty | Usually nil or minimal | Often 2 to 4 per cent of outstanding |
| Risk | Gold can be auctioned if you default | Credit score impact |
| Best suited for | Short-term urgent needs, business working capital | Medium-term personal needs without gold |
When gold loan is better: You need money fast. Your credit score is low. You have gold sitting idle. You need a short tenure of under 12 to 24 months.
When personal loan is better: You do not want to risk your gold. You need a longer tenure above 3 years. Your loan amount requirement exceeds the value of gold you own.
Gold Loan vs Gold Mortgage: The Difference
A gold loan and a gold mortgage are often confused but they are different products.
A gold loan (also called loan against gold) is a short-term loan against the market value of physical gold. Tenure: 3 to 36 months. Purpose: any short-term need. Lender holds the physical gold.
A gold mortgage typically refers to using gold as security for a longer-term property-linked loan or a term loan with a longer tenure. Less common in India. Some lenders use the term informally to describe gold loans with longer tenures of 3 to 7 years.
For all practical purposes in the Indian context, gold loan and loan against gold refer to the same product. The PlanMyReturns calculator covers standard gold loan products with tenures up to 36 months.
Using the Calculator for Specific Lender Scenarios
Muthoot Finance gold loan calculator
Muthoot Finance charges interest rates from 8 per cent to 24 per cent per annum. For the PlanMyReturns calculator: set the interest rate to your Muthoot scheme rate. Set LTV to 75 per cent. Muthoot gold loan per gram today (March 2026) is approximately Rs.10,174 to Rs.11,531 per gram for 22K gold depending on the loan amount slab.
Manappuram Finance gold loan calculator
Manappuram interest rates range from 9.90 to 21.6 per cent per annum. Set LTV to 75 per cent (note: Manappuram’s actual average portfolio LTV is approximately 57 per cent; your branch may offer less than the maximum). Manappuram commonly offers bullet repayment schemes for short tenures.
IIFL Finance gold loan calculator
IIFL offers gold loans at 9.24 to 27 per cent per annum. Fast processing and flexible schemes. Set your IIFL scheme’s specific rate in the interest rate field of the PlanMyReturns calculator.
SBI gold loan calculator
SBI gold loan interest rates start from approximately 8.75 per cent per annum. SBI uses 75 per cent LTV. Processing fees are typically 0.25 to 0.50 per cent. Enter these in the Processing Fee field of the calculator.
Capri Global gold loan calculator
Capri Global charges approximately 10 to 24 per cent per annum. Focused on semi-urban and rural markets. Use the same calculator with Capri’s current rate for your EMI estimate.
Poonawalla Fincorp gold loan calculator
Poonawalla gold loan interest rates start from approximately 9 per cent per annum. Enter your Poonawalla scheme rate and LTV in the PlanMyReturns calculator for your personalised projection.
Aditya Birla Finance gold loan calculator
Aditya Birla Capital offers gold loans through its finance arm. Use the PlanMyReturns calculator with the rate from your Aditya Birla scheme for accurate EMI and total cost.
Gold Loan Repayment Schedule: Understanding Your Amortisation Table
The repayment schedule (also called amortisation table or repayment table) shows month-by-month what happens to your loan.
For a reducing balance gold loan:
- Each monthly EMI consists of a principal component and an interest component
- In the early months, the interest component is higher and principal is lower
- Over time, as the principal reduces, the interest portion of each EMI decreases and the principal portion increases
- By the final month, almost the entire EMI is principal repayment
The PlanMyReturns gold loan calculator generates this complete amortisation table automatically. Every row shows:
- Month number
- Principal repaid in that month
- Interest charged in that month
- Outstanding loan balance after that payment
Download the full schedule as CSV to plan your monthly budget.
Gold Loan Tenure: What Works Best?
Gold loan tenure in India typically ranges from 3 months to 36 months for EMI-based loans. Bullet repayment loans are typically capped at 12 months per RBI guidelines (renewable).
Short tenure (3 to 6 months): Higher monthly payments but significantly lower total interest. Best if you expect a cash inflow soon (crop sale, salary hike, property sale proceeds).
Medium tenure (12 months): The most common gold loan tenure in India. Balances affordability of monthly payment with reasonable total interest cost.
Longer tenure (24 to 36 months): Lower monthly EMI makes it affordable month-to-month. However, total interest paid over the life of the loan is substantially higher. Also, since gold loan interest rates are typically higher than home loan rates, longer tenures increase risk.
Rule of thumb: Keep your gold loan tenure as short as your monthly budget allows. Every additional month of tenure adds interest cost without adding any benefit.
The PlanMyReturns calculator lets you compare different tenures instantly. Try 6, 12, 24 and 36 months with the same loan amount to see exactly how much more interest you pay for each additional year.
Gold Loan Charges: What You Actually Pay Beyond the EMI
| Charge | Typical range | Notes |
|---|---|---|
| Processing fee | 0.25 to 2 per cent of loan amount + GST | Some banks charge nil |
| Valuation charge | Rs.100 to Rs.500 | Sometimes waived |
| Storage and insurance | Rs.50 to Rs.200 per month | Charged by some NBFCs |
| Prepayment penalty | Usually nil | Check your specific scheme |
| Late payment penalty | 1 to 3 per cent additional interest | Charged if EMI is missed |
| Auction charges | Applicable if gold is auctioned | After default |
The PlanMyReturns calculator lets you add the processing fee percentage in the Advanced Options section. The total cost shown will then include this fee, giving you the true all-in cost of borrowing.
Gold Loan Amortisation Calculator: What It Means
Amortisation means the gradual repayment of a loan through scheduled payments. The gold loan amortisation table shows exactly how each EMI payment is split between:
- Repayment of principal (reducing your debt)
- Payment of interest (cost of borrowing)
In the early months of a gold loan, a larger share of your EMI goes toward interest. As the loan progresses and the outstanding principal falls, more of each EMI goes toward principal.
The PlanMyReturns gold loan calculator generates the full amortisation schedule automatically and shows it in the Repayment Schedule table below the results. You can download this table as a CSV file.
Gold Loan Interest Calculation Formula: The Mathematics Explained
Reducing balance EMI formula: EMI = [P x r x (1+r) raised to n] divided by [(1+r) raised to n minus 1]
Where P = principal, r = monthly interest rate, n = number of months
Flat rate interest formula (used by some schemes): Total Interest = P x Annual Rate x Tenure in Years Monthly Interest Component = Total Interest divided by n
Annual vs monthly vs daily compounding: Most gold loans in India use monthly compounding. A few NBFCs use daily or weekly interest accrual. The PlanMyReturns calculator uses monthly compounding as default, consistent with RBI standard disclosure norms.
Gold loan interest calculation formula for a full year: Total Interest (simple) = Principal x Rate x Tenure in years For Rs.3 lakh at 12% per annum for 1 year: 3,00,000 x 0.12 x 1 = Rs.36,000
For accurate reducing balance interest (which will be lower), use the calculator above.
RELATED CALCULATORS
Other Calculators You May Find Useful
| Goal | Calculator |
|---|---|
| Calculate EMI for any loan | Home Loan EMI Calculator |
| Compare gold loan vs personal loan cost | Business Loan Calculator |
| Check loan eligibility based on income | Loan Eligibility Calculator |
| Calculate prepayment savings on your gold loan | Loan Prepayment Calculator |
| Plan investment using same gold amount | Lumpsum Calculator |
| Calculate SIP returns vs pledging gold | SIP Calculator |
Frequently Asked Questions
A gold loan calculator helps you estimate the loan amount you can get against your gold, your monthly EMI and total interest payable. You enter your gold weight in grams, select the purity (22K or 24K), enter the current gold price per gram and set the LTV ratio. The calculator applies the formula: Loan Amount = Gold Weight x Gold Price x Purity Factor x LTV Ratio. It then calculates EMI using the reducing balance formula and shows a complete repayment schedule. The PlanMyReturns gold loan calculator also works in reverse: enter your target loan amount and it tells you how many grams of gold are required.
Gold loan interest rates in India in 2026 range from 8 per cent to 27 per cent per annum depending on the lender. Banks (SBI, HDFC, ICICI, Canara) offer 8.75 to 17 per cent. NBFCs (Muthoot, Manappuram, IIFL) offer 8 to 27 per cent. Kotak Mahindra Bank currently offers the lowest starting rate at approximately 8 per cent per annum.
Effective April 1, 2026, the RBI has introduced a tiered LTV structure: 85 per cent LTV for loans up to Rs.2.5 lakh, 80 per cent for loans between Rs.2.5 lakh and Rs.5 lakh, and 75 per cent for loans above Rs.5 lakh. Additionally, no credit score check is required for loans below Rs.2.5 lakh. Lenders must return pledged gold within 7 days of full repayment.
At 12 per cent per annum for 12 months: approximately Rs.44,424 per month. At 12 per cent for 24 months: approximately Rs.23,537 per month. At 10 per cent for 12 months: approximately Rs.43,960 per month. Use the calculator on this page for your exact figures.
In bullet repayment, you pay only the interest every month and repay the full principal in one lump sum at the end of the tenure. For example, a Rs.3 lakh bullet loan at 12 per cent for 12 months requires Rs.3,000 monthly interest payments and a Rs.3 lakh payment at month 12. Bullet repayment is offered by Muthoot, Manappuram and IIFL. Per RBI guidelines, bullet repayment tenures are capped at 12 months.
Gold loan amount = Gold Weight (grams) x Current Gold Price per gram x Purity Factor x LTV Ratio. EMI = P x r x (1+r) raised to n, divided by [(1+r) raised to n minus 1]. Use the PlanMyReturns gold loan calculator to compute both instantly.
Most banks and NBFCs accept 18K, 22K and 24K gold for loan purposes. 22K is the most common as it is the standard purity for Indian jewellery. Higher purity means higher gold value and therefore higher eligible loan amount. Lenders typically do not accept gold below 18 karat.
Under the new RBI 2026 gold loan rules effective April 2026, lenders are not required to conduct a credit appraisal for gold loans below Rs.2.5 lakh. For loans above this amount, income assessment and credit evaluation may apply depending on the lender’s internal policy.
If you default on a gold loan, the lender is legally entitled to auction your pledged gold after providing proper notice. The auction must be conducted transparently and any surplus proceeds (auction value minus outstanding loan) must be returned to you. Under new RBI 2026 rules, auction procedures are standardised with mandatory borrower communication.
The gold loan percentage refers to the LTV ratio, which is the percentage of gold value given as loan. Under 2026 RBI rules: 85 per cent for loans up to Rs.2.5 lakh, 80 per cent for Rs.2.5 to 5 lakh, and 75 per cent for loans above Rs.5 lakh. This applies to all regulated entities including banks, NBFCs and cooperative banks.