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

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

This calculator supports two calculation modes. In the first mode, you enter the weight of gold you plan to pledge and instantly see your eligible loan amount. In the second mode, you enter the loan amount you need and the calculator tells you exactly how much gold you must pledge to get it. Both modes factor in gold purity, live gold rates, your chosen LTV ratio, tenure, and interest type.

What This Gold Loan Calculator Does

This tool handles the full financial picture of a gold loan, not just a single number. Here is what it calculates and displays:

• Eligible loan amount based on gold weight, purity, current gold price, and LTV ratio
• Reverse calculation, where you enter a target loan amount and the calculator tells you the exact gold weight required
• Monthly EMI, using either reducing balance or flat interest rate methods
• Total interest payable and total amount repayable over the full tenure
• Processing fee estimate based on a percentage you can adjust
• Full month by month repayment schedule showing principal, interest, and remaining balance
• Live 24K, 22K, and 18K gold rates, updated daily, with the option to enter your own local rate manually
• A 7 day gold rate history so you can time your pledge better
• Visual payment breakdown showing the principal to interest split
• CSV download and a shareable plan link, so you can save your calculation or send it to a family member

Every calculation happens instantly in your browser. Nothing you enter is stored or sent anywhere.

How a Gold Loan Works

A gold loan is a secured loan where you pledge gold jewellery or bank-issued gold coins as collateral. The lender, which can be a bank, NBFC, or cooperative bank, values your gold using its purity and the current market rate, then offers a loan that is a percentage of that value. This percentage is called the Loan to Value ratio, or LTV.

Once you repay the loan along with interest, your gold is returned to you. If you fail to repay, the lender can auction the pledged gold to recover the outstanding amount, following a defined legal process with prior notice to you.

Gold Loan Formula Used in This Calculator

Step 1: Value of Pledged Gold

Gold Value = Weight of Gold (grams) × Price per Gram (based on purity)

For example, 10 grams of 22K gold at ₹12,960 per gram (91.6 percent of a ₹14,150 24K rate) gives a market value of ₹1,29,600.

Step 2: Eligible Loan Amount

Loan Amount = Gold Value × LTV Percentage

At 75 percent LTV, a gold value of ₹1,29,600 gives an eligible loan of ₹97,200. At 85 percent, which now applies to smaller loans under RBI rules, the same gold supports ₹1,10,160.

Step 3: EMI Calculation

For reducing balance interest, the calculator uses the standard EMI formula:

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

Where P is the principal, r is the monthly interest rate, and n is the number of months.

For flat rate interest, total interest is:

Interest = Principal × Annual Rate × Tenure in Years

A flat rate almost always costs more than a reducing balance rate with the same headline number. This calculator lets you toggle between both so you can see the real difference before choosing a lender.

Gold Loan Per Gram: How Much Can You Get?

The most common question borrowers ask is how much loan a specific weight of gold can fetch. The table below shows illustrative amounts for 22K gold at ₹12,960 per gram. Actual figures change daily with the gold rate, so use the calculator above for today’s exact numbers.

*The 85 percent LTV tier applies only when the sanctioned loan amount is up to ₹2.5 lakh under RBI’s tiered structure.

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

Understanding Every Input in the Calculator

Gold Weight or Loan Amount

Choose whichever you know. If you know how much gold you own, use weight mode. If you know how much money you need, switch to loan amount mode and the calculator works backward to show the gold required.

Purity (Karat)

Gold purity is measured in karats. 24K is 99.9 percent pure and rarely used in jewellery because it is too soft. Most Indian jewellery is 22K, which is 91.6 percent pure. 18K, at 75 percent purity, is common in lightweight or diamond studded pieces. Check the BIS hallmark on your jewellery for the exact purity. Higher purity means higher value per gram, which increases loan eligibility for the same weight.

Price per Gram

This field auto updates daily using live gold rate data. You can overwrite it manually if your lender quotes a different rate, since gold prices vary slightly by city. Lenders typically use a reference price based on recent IBJA published rates rather than the minute by minute market price.

LTV, or Loan to Value Ratio

The maximum percentage of your gold’s value a lender can offer as a loan. Under the Reserve Bank of India’s Lending Against Gold and Silver Collateral Directions, 2025, this is no longer a flat number. It now depends on your loan amount, as explained in the next section.

Loan Tenure

Choose months or years. Shorter tenures reduce total interest but increase your EMI. Longer tenures do the opposite. Most gold loans run 6 to 24 months.

Interest Rate Type

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

Processing Fee

Most lenders charge this as a one time percentage of the loan amount, typically between 0.5 percent and 2 percent, deducted at disbursal.

RBI’s Tiered LTV Rules Effective April 2026

For years, every gold loan in India followed a flat 75 percent LTV cap. That changed with RBI’s Lending Against Gold and Silver Collateral Directions issued in June 2025, which introduced a tiered structure that all lenders must follow by 1 April 2026.

The tiered structure is designed to help smaller borrowers, who typically need gold loans for emergencies, education fees, or working capital, access more funds against the same gold. The directions apply uniformly to commercial banks, NBFCs, cooperative banks, and housing finance companies.

The rules also strengthen borrower protection in three important ways:

• Pledged gold must be returned within 7 working days of full repayment, with compensation payable to you if the lender delays
• Bullet repayment loans must be closed within 12 months
• Lenders must follow standardised, transparent valuation using the net gold content of your jewellery

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

Bullet Repayment vs EMI: Which Should You Choose?

Gold loans offer two main repayment structures, and the right choice depends on your cash flow.

EMI repayment saves interest because your principal keeps shrinking every month. Bullet repayment keeps monthly pressure low but requires a clear plan to repay the full principal within 12 months. If you expect a lump sum, bullet works. If you earn a steady salary, EMI is almost always cheaper.

Gold Loan Interest Rates: Banks vs NBFCs

Interest rates vary widely by lender type. These are indicative ranges, so always confirm current rates before applying.

Banks are cheaper but ask for more documentation. NBFCs like gold loan companies disburse fastest and have deeper reach in semi urban and rural areas. Compare the total cost over your planned tenure, including processing fees and valuation charges, not just the headline rate.

Eligibility and Documents Required

Gold loan eligibility is refreshingly simple because the loan is secured by your gold, not your income.

• Age: 18 years or above (some lenders require 21)
• Ownership: the gold must belong to you, and lenders now verify ownership more strictly under RBI’s updated directions, so keep purchase receipts handy if available
• Gold accepted: jewellery of 18K to 24K purity and bank issued gold coins up to 50 grams per borrower
• No income proof or credit score requirement for most standard gold loans

Documents needed are minimal: one photo identity proof (Aadhaar, PAN, passport, voter ID, or driving licence) and one address proof. PAN is required for larger loan amounts.

Worked Example

Assume you pledge 50 grams of 22K gold when the 24K rate is ₹13,150 per gram.

Step 1: 22K price per gram = ₹13,150 × 0.916 = ₹12,045
Step 2: Gold value = 50 × ₹12,045 = ₹6,02,250
Step 3: At 75 percent LTV, eligible loan = ₹4,51,688
Step 4: At 9.3 percent reducing rate over 12 months, EMI works out to roughly ₹39,590, with total interest close to ₹23,400

Try these exact numbers in the calculator above to see the full month by month breakdown.

Gold Loan vs Personal Loan vs Loan Against Property

A gold loan usually disburses fastest, often within hours, and carries lower interest than an unsecured personal loan since it is backed by collateral. If you need funds urgently and own gold, this is often the cheapest short term option. Compare against our personal loan calculator if you do not want to pledge gold, though expect a higher rate since personal loans are unsecured.

For larger amounts over a longer horizon, a loan against property may offer bigger ticket sizes, but takes longer due to property valuation and legal checks.

If you are unsure which loan type fits your income and repayment capacity, our loan eligibility calculator can help you estimate borrowing capacity across loan types before you apply anywhere.

Common Mistakes to Avoid

Ignoring the interest type. A flat 9 percent rate can cost noticeably more than a reducing balance rate of the same number. Always ask the lender which method applies.

Assuming 22K when your gold is actually 18K. This single input error can overstate your loan eligibility by nearly 20 percent.

Forgetting that stones are excluded. Lenders value net gold weight only. A 25 gram necklace with heavy stonework may count as just 18 to 20 grams of gold.

Not checking foreclosure charges. Some lenders charge a fee for early repayment. If you plan to close the loan early, run the numbers through our loan prepayment calculator to see whether early closure actually saves money.

Overlooking processing and valuation fees. These are deducted upfront and reduce your actual disbursed amount below the calculated eligible loan.

Choosing bullet repayment without a repayment plan. Since RBI now requires bullet loans to close within 12 months, ensure you have a clear repayment source before choosing this option.

Who Uses a Gold Loan and Why

Gold loans are commonly used by salaried employees facing a medical emergency, small business owners needing quick working capital, farmers managing seasonal cash flow, and families funding education or wedding expenses. If you are comparing this against a structured loan for a specific goal, our education loan calculator or business loan calculator may fit better depending on your purpose and timeline.

For a general EMI comparison across any loan type, use our EMI calculator to test different amounts, rates, and tenures side by side.

Limitations and Assumptions

This calculator provides an estimate for planning purposes only. It assumes:

• The gold price entered reflects the rate your lender will apply, which may differ from the daily reference rate shown
• Actual purity testing at the branch may show a different karat value than selected, and stone weight will be deducted
• Final LTV, interest rate, and fees depend on the lender’s policy and your loan amount tier under RBI rules
• The repayment schedule assumes no prepayments or missed EMIs

Always confirm final terms with your lender before proceeding with an application.

Expert Tips Before You Apply

Compare the reducing balance rate across at least three lenders, not just the headline rate. Ask specifically whether your loan falls under the 85, 80, or 75 percent LTV tier based on the amount you need. Get your jewellery’s approximate net gold weight assessed before negotiating, so a low branch valuation does not catch you off guard. Keep purchase receipts handy, since lenders now verify ownership more strictly. And avoid rolling over a bullet loan indefinitely, since the 12 month closure rule means you need a clear exit plan from day one.

Key Takeaways

• A gold loan calculator estimates loan eligibility, EMI, and total interest from gold weight, purity, and LTV
• RBI’s tiered LTV limits apply from April 2026: 85 percent up to ₹2.5 lakh, 80 percent between ₹2.5 and ₹5 lakh, 75 percent above ₹5 lakh
• 10 grams of 22K gold supports roughly ₹97,000 to ₹1,10,000 of loan at current rates, depending on the LTV tier
• Reducing balance interest almost always costs less than flat rate at the same quoted percentage
• Lenders must return pledged gold within 7 working days of full repayment
• Bullet repayment loans must close within 12 months

Frequently Asked Questions