Gold Loan Calculator: EMI, Per Gram Loan Value & Interest

Gold Loan Calculator

A gold loan calculator shows how much money you can borrow against your gold, along with your monthly EMI and total interest. Instead of visiting a branch and waiting for a manual valuation, you get a reliable estimate in seconds from your gold’s weight, purity and today’s market rate.

This calculator works two ways. In weight mode, you enter the grams of gold you plan to pledge and see your eligible loan amount. In loan amount mode, you enter the money you need and the tool works backward to show the gold required. Both modes factor in purity, the live gold rate, your LTV tier, tenure and interest type. Every calculation runs privately in your browser, and nothing you enter is stored or sent anywhere.

What This Gold Loan Calculator Does

This tool handles the full picture of a gold loan, not just one number.

• Eligible loan amount from gold weight, purity, current price and LTV ratio
• Reverse calculation that shows the exact gold weight needed for a target loan
• Monthly EMI using either reducing balance or flat interest
• Total interest payable and total amount repayable over the tenure
• Processing fee estimate based on a percentage you can adjust
• Full month-by-month repayment schedule with principal, interest and balance
• Live 24K, 22K and 18K rates updated daily, with a manual override for your local rate
• A 7-day gold rate history so you can time your pledge
• Visual principal versus interest breakdown
• CSV download and a shareable plan link

How a Gold Loan Works

A gold loan is a secured loan. You pledge gold jewellery or bank-issued gold coins as collateral. The lender values your gold using its purity and the current market rate, then lends a percentage of that value. This percentage is the Loan to Value ratio, or LTV. When you repay the loan with interest, your gold is returned. If you do not repay, the lender can auction the pledged gold after due notice.

Gold Loan Formula

Step 1: Value of pledged gold

Gold Value = Weight in grams × Price per gram for that purity

For example, 10 grams of 22K gold at an illustrative ₹14,840 per gram gives a value of ₹1,48,400.

Step 2: Eligible loan amount

Loan Amount = Gold Value × LTV percentage

At 85% LTV, ₹1,48,400 supports about ₹1,26,140, since a loan of that size falls in the highest tier.

Step 3: EMI

For reducing balance interest, the tool uses the standard EMI formula.

EMI = P × r × (1 + r)ⁿ / [(1 + r)ⁿ − 1]

Here P is the principal, r is the monthly interest rate, and n is the number of months. For flat rate, interest is simply Principal × Annual Rate × Tenure in years. A flat rate almost always costs more than a reducing rate with the same headline number. The calculator lets you toggle both, so you can see the real difference before choosing a lender. See our calculation methodology for full assumptions.

Gold Loan Per Gram: How Much Can You Get?

The table below is illustrative for 22K gold at ₹14,840 per gram, a late-August 2026 level. Rates change daily, so use the calculator above for today’s exact figure.

*The 85% tier applies only when the sanctioned loan is up to ₹2.5 lakh. Above that, lower tiers apply.

Two things reduce these figures in practice. Lenders value only net gold content, so stones and other materials are deducted. And purity is tested at the branch, so jewellery sold as 22K may assay slightly lower.

Understanding Every Input

Gold Weight or Loan Amount

Use whichever you know. Weight mode if you know how much gold you own. Loan amount mode if you know how much money you need, and the tool shows the gold required.

Purity (Karat)

Purity is measured in karats. 24K is 99.9% pure and rarely used in jewellery. Most Indian jewellery is 22K, which is 91.6% pure. 18K, at 75%, is common in lightweight or studded pieces. Check the BIS hallmark for exact purity. Higher purity means higher value per gram.

Price per Gram

This field updates daily from live gold rate data. You can overwrite it if your lender quotes a different rate, since prices vary by city. Lenders usually apply a reference rate based on recent IBJA published prices, not the minute-by-minute market price.

LTV, or Loan to Value Ratio

The maximum share of your gold’s value a lender can offer. Under RBI’s 2026 rules this is tiered by loan size, explained below. The maximum permitted is 85%.

Loan Tenure

Choose months or years. Shorter tenures cut total interest but raise your EMI. Most gold loans run 6 to 24 months.

Interest Rate Type

Reducing balance charges interest only on the outstanding principal, so your cost falls as you repay. Flat rate charges on the full original principal for the whole tenure, which usually costs more at the same quoted rate.

Processing Fee

Usually a one-time percentage of the loan, often 0.5% to 2%, deducted at disbursal.

RBI Gold Loan Rules Effective April 2026

For years, gold loans followed a flat 75% LTV cap. RBI’s Lending Against Gold and Silver Collateral Directions, 2025, issued in June 2025 and effective 1 April 2026, replaced that with a tiered structure that all lenders must follow.

The tiers help smaller borrowers access more funds against the same gold. They apply uniformly to banks, NBFCs, cooperative banks and housing finance companies. The rules also add several borrower protections.

• Lenders must value gold using 22-karat purity as the standard benchmark and give you a purity and valuation certificate.
• Only jewellery, ornaments and specially minted bank coins qualify. Gold bars, bullion, ETFs and digital gold are not eligible collateral.
• Per borrower, lenders can accept up to 1 kg of gold ornaments and 50 grams of gold coins.
• LTV is monitored through the loan, not just at sanction. If gold prices fall sharply, the lender may act.
• Pledged gold must be returned within 7 working days of full repayment, with compensation if delayed.
• Bullet repayment loans must be closed within 12 months, and borrowers get prior notice before any auction.
• Loans up to ₹2.5 lakh need no mandatory credit appraisal, which speeds up approval.

Source: Reserve Bank of India, Lending Against Gold and Silver Collateral Directions, 2025.

Bullet Repayment vs EMI

The right structure depends on your cash flow.

EMI saves interest because the principal keeps shrinking. Bullet keeps monthly pressure low but needs a clear plan to repay in full within 12 months.

Gold Loan Interest Rates: Banks vs NBFCs

Rates vary widely by lender type. These are indicative ranges, so confirm before applying.

Compare the total cost over your tenure, including processing and valuation fees, not just the headline rate.

Eligibility and Documents

Eligibility is simple because the loan is secured by gold, not income.

• Age 18 or above, sometimes 21
• The gold must belong to you, and ownership is checked more strictly now, so keep receipts if available
• Jewellery of 18K to 24K and bank-issued gold coins up to 50 grams per borrower
• No income proof or credit score needed for most standard gold loans

Documents are minimal: one photo ID and one address proof. PAN is required for larger amounts.

Worked Example

Assume you pledge 15 grams of 22K gold when the 24K rate is an illustrative ₹16,200 per gram.

• 22K price per gram: ₹16,200 × 0.916 = ₹14,839
• Gold value: 15 × ₹14,839 = ₹2,22,585
• At 85% LTV, since the loan stays under ₹2.5 lakh, eligible loan is about ₹1,89,197
• At 9.3% reducing over 12 months, EMI is roughly ₹16,573, with total interest near ₹9,680

Enter these numbers in the calculator above to see the full month-by-month schedule.

Gold Loan vs Personal Loan

A gold loan usually disburses fastest, often within hours, and carries a lower rate than an unsecured personal loan because it is backed by collateral. If you need funds urgently and own gold, it is often the cheapest short-term option. If you would rather not pledge gold, compare with our personal loan calculator, though expect a higher rate. To gauge borrowing capacity across loan types first, use our loan eligibility calculator.

Common Mistakes to Avoid

• Ignoring the interest type. A flat 9% can cost more than a reducing 9%. Always ask which applies.
• Assuming 22K when your gold is 18K. This overstates eligibility by nearly 20%.
• Forgetting that stones are excluded. Lenders count net gold only.
• Missing foreclosure charges. If you plan early closure, check our loan prepayment calculator.
• Choosing bullet repayment without a plan. The 12-month closure rule leaves no room to roll over.

Who Uses a Gold Loan

Gold loans suit salaried employees facing a medical emergency, small business owners needing quick working capital, farmers managing seasonal cash flow, and families funding education or weddings. For a purpose-specific plan, see our education loan calculator or business loan calculator. For a general side-by-side, use our EMI calculator.

Limitations and Assumptions

This calculator gives an estimate for planning only. It assumes the entered price matches the lender’s applied rate, that branch purity testing and stone deduction may change the value, and that final LTV, rate and fees depend on lender policy and your loan tier. The schedule assumes no prepayments or missed EMIs. Confirm final terms with your lender before applying.

Expert Tips

• Compare the reducing balance rate across at least three lenders.
• Ask which LTV tier applies to the amount you need.
• Get your jewellery’s net gold weight assessed before negotiating.
• Keep purchase receipts, since ownership checks are stricter now.
• Avoid rolling over a bullet loan, since the 12-month closure rule needs a clear exit.

Key Takeaways

• A gold loan calculator estimates eligibility, EMI and total interest from gold weight, purity and LTV.
• RBI’s tiered LTV from April 2026: 85% up to ₹2.5 lakh, 80% up to ₹5 lakh, 75% above.
• At a late-August 2026 rate, 10 grams of 22K gold supports roughly ₹1,11,000 to ₹1,26,000, depending on the tier.
• Reducing balance interest almost always beats flat rate at the same quoted percentage.
• Pledged gold must be returned within 7 working days of repayment, and bullet loans must close within 12 months.

Frequently Asked Questions