Gold Loan Calculator – Calculate EMI, Loan Amount & Repayment
The PlanMyReturns Gold Loan Calculator helps you understand how much loan you can get against gold, what your monthly EMI will be, and how much you will repay over the loan tenure.
This calculator is built for people who want clarity before visiting a bank or NBFC. It works for both situations:
- When you know your gold weight
- When you know the loan amount you want
The calculator automatically adjusts everything else.
What Is a Gold Loan?
A gold loan is a secured loan where you pledge your gold jewellery as collateral and receive funds based on the value and purity of gold.
Gold loans are commonly used for:
- Short-term cash needs
- Business working capital
- Medical or emergency expenses
- Seasonal funding requirements
Since gold is used as security, interest rates are usually lower than personal loans.
How Gold Loans Are Calculated
Gold loan eligibility depends on five main factors:
- Gold weight (in grams)
- Gold purity (22K or 24K)
- Current gold price per gram
- LTV (Loan to Value ratio)
- Interest rate and tenure
Your calculator uses all five to give realistic results.
Two Ways to Use This Gold Loan Calculator
1. Based on Gold Weight
If you know how much gold you have:
- Enter gold weight
- Select purity
- Set gold price
- Choose LTV
The calculator tells you maximum loan amount, EMI, and repayment schedule.
2. Based on Desired Loan Amount
If you know how much money you need:
- Enter desired loan amount
- Select purity, LTV, and gold price
The calculator tells you how much gold (in grams) is required.
This is especially useful before visiting a lender.
Gold Purity and Why It Matters
Gold loans are usually offered on:
- 22K gold (most jewellery)
- 24K gold (coins or bars)
Higher purity means higher gold value and a higher eligible loan amount.
The calculator automatically adjusts calculations based on purity selection.
Gold Price per Gram (Editable)
Gold prices change daily.
This calculator allows you to:
- Set separate prices for 22K and 24K gold
- Adjust values based on the latest market rates
This improves accuracy and avoids misleading estimates.
LTV (Loan to Value Ratio) Explained
LTV decides what percentage of gold value can be given as a loan.
Example:
- Gold value: ₹10,00,000
- LTV: 75%
- Eligible loan: ₹7,50,000
Higher LTV means higher loan, but lenders may adjust interest rates accordingly.
Interest Type: Reducing vs Flat
Reducing Balance Interest (Most Common)
- Interest is charged on the outstanding balance
- EMI remains fixed
- Total interest paid is lower
This calculator shows monthly EMI for reducing balance loans.
Flat Interest Rate
- Interest calculated on full loan amount
- EMI does not reflect actual reducing balance
- Total interest is higher
The calculator clearly separates flat and reducing outcomes.
Loan Tenure Options
You can enter tenure in:
- Months
- Years
The calculator converts everything into months internally and generates a full repayment schedule.
Processing Fees
Some lenders charge processing fees as a percentage of loan amount.
The calculator:
- Adds processing fees to total repayment
- Shows realistic total cost of borrowing
Gold Loan EMI Formula
For reducing balance loans:
EMI = P × r × (1 + r)ⁿ / [(1 + r)ⁿ − 1]
Where:
- P = Loan amount
- r = Monthly interest rate
- n = Number of months
Flat interest loans use a different total-interest approach.
Gold Loan Example
Suppose you pledge 100 grams of 22K gold at ₹12,945 per gram with 75% LTV for 12 months at 9.3% interest.
- Approx gold value: ₹11.87 lakh
- Eligible loan: ~₹8.90 lakh
- Monthly EMI (reducing): Calculated instantly
- Total repayment: Shown with interest and fees
Exact results depend on lender rates and gold prices.
What This Gold Loan Calculator Shows You
- Eligible loan amount
- Monthly EMI
- Total repayment
- Total interest paid
- Processing fees impact
- Month-wise repayment schedule
- Loan balance timeline chart
You can also download results or share a prefilled plan.
Gold Loan vs Personal Loan
| Feature | Gold Loan | Personal Loan |
|---|---|---|
| Security | Gold collateral | Unsecured |
| Interest rate | Lower | Higher |
| Approval | Faster | Depends on credit |
| Credit score impact | Limited | High |
| Loan size | Depends on gold | Income based |
Gold loans are usually cheaper for short-term needs.
Who Should Use This Gold Loan Calculator
- Anyone planning to take a gold loan
- Users comparing EMI before visiting lenders
- Business owners needing short-term liquidity
- People checking how much gold is required for a loan
Why PlanMyReturns Gold Loan Calculator Is Better
- Works for both gold weight and loan amount
- Editable gold prices and LTV
- Supports reducing and flat interest
- Detailed repayment schedule
- Mobile-friendly and fast
- No login required