Gold Loan Calculator
Pledging gold for a loan and want to know how much you can borrow? Enter the weight, purity, and current gold rate and see your maximum loan eligibility. Also calculates your EMI or monthly interest depending on your repayment preference.
This calculator is designed for India. Rates and rules are based on Indian regulations. If you are outside India, the values may not apply to your country.
How to use
- Enter the weight of your gold in grams and the current market rate per gram.
- Select the purity of your gold and the LTV your lender is offering.
- If you want a specific amount less than the maximum, enter it here.
- Choose EMI or interest-only repayment and hit Calculate.
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Gold loans are one of the fastest ways to access credit in India - most lenders disburse within hours of submitting gold. The loan amount depends on the weight and purity of your gold and the loan-to-value (LTV) ratio the lender applies. RBI caps LTV at 75%, meaning if your gold is worth Rs.1 lakh, the maximum loan is Rs.75,000.
Rates vary significantly between banks and NBFCs. Banks typically charge 7-12% per annum; NBFCs like Muthoot and Manappuram go up to 24-26%. Interest-only (bullet) repayment schemes are common - you pay just the monthly interest and return the principal at the end of tenure. Monthly outgo stays low but the principal does not reduce.
Frequently Asked Questions
How is gold loan eligibility calculated?
Lenders assess the net weight after deducting stones and multiply by the current market rate for that purity (22K or 18K). Then they apply the LTV ratio up to 75% per RBI guidelines. Enter your gold weight and per-gram rate to estimate.
What happens if I do not repay?
After the due date, the lender sends notices and gives a cure period. If unpaid, they auction the pledged gold. Any surplus after recovering dues is returned to you; any shortfall remains your liability.
Is gold loan interest tax deductible?
Only if the loan was used for a qualifying purpose. Business use - deductible as a business expense. Home purchase - potentially under Section 24. Personal use does not qualify for any deduction.
Disclaimer: Results are estimates for informational purposes only and do not constitute financial, tax, or investment advice. Figures may vary based on actual terms. Always consult a qualified financial advisor before making financial decisions.