Gold Loan Calculator
Estimate how much you can borrow against your gold — enter the gold value, an LTV ratio such as the 75% cap, the annual interest rate and the tenure, to see the loan amount, the monthly EMI and the total interest.
What is a gold loan calculator?
A gold loan calculator works out how much you can borrow against the gold you pledge, and what it will cost to repay. A gold loan is a secured loan in India where you hand over jewellery or coins to a bank, NBFC or jeweller as collateral. This free tool takes four inputs: the value of the gold, the LTV ratio, the annual interest rate and the tenure in months.
It multiplies the gold value by the LTV to find the loan amount, then uses the reducing-balance EMI formula to show the monthly EMI and total interest. The RBI caps the LTV, commonly at 75%, so you can usually borrow up to three-quarters of the gold's worth. It runs in your browser, so nothing is uploaded.
How to use
- Enter the value of the gold you want to pledge.
- Set the LTV ratio — 75% is the common cap.
- Enter the annual interest rate and tenure.
- Click Calculate Gold Loan to see the loan, EMI and interest.
How the gold loan EMI is calculated
Loan amount = Gold value × LTV / 100 EMI = P × r × (1 + r)^n / ((1 + r)^n − 1)
P is the loan amount, r is the monthly rate (annual / 12) and n is months. Total interest = (EMI × n) − P.
Example
With the defaults — gold worth ₹2,00,000, a 75% LTV, 10.5% annual rate and 12 months — the loan amount is ₹1,50,000. The reducing-balance EMI is about ₹13,222 a month, so over 12 months you pay about ₹1,58,666, meaning roughly ₹8,666 in total interest. Lengthen the tenure to 24 months and the EMI falls to about ₹6,952, but the total interest rises.
Common use cases
- Emergency cash: get quick secured funds against gold without selling it.
- Paying for an expense: cover school fees, a medical bill or a short-term need.
- Comparing lenders: test how different rates and tenures change the EMI.
Pro tips
- The 75% LTV is the cap: borrowing more needs a higher LTV or more gold.
- Repay early: many gold loans allow prepayment, which cuts the total interest.
- Shorten the tenure: a shorter term raises the EMI but lowers the interest.
- Check processing fees: these add to the real cost.
FAQ
What is a gold loan?
A secured loan where you pledge gold jewellery or coins as collateral and borrow against its value, repaying with interest.
What is LTV and what is the maximum in India?
LTV (loan to value) is the percentage of the gold's value you can borrow. The RBI caps it, commonly around 75%.
How is a gold loan EMI calculated?
Using the reducing-balance formula: EMI = P × r × (1 + r)^n / ((1 + r)^n − 1), where P is the loan amount, r is the monthly rate and n is months.
What is a typical gold loan interest rate in India?
Gold loan rates generally range from around 8% to 14% a year depending on the lender and the amount.
Do I need to hand over the gold?
Usually yes — it is stored in the lender's vault until you repay. Some lenders let you keep it for smaller loans.
Is a lower LTV better?
Lenders may give a slightly better rate at a lower LTV, but you borrow less. A higher LTV gives more cash and a bigger EMI.
Can I repay a gold loan early?
Most gold loans can be prepaid, often with a small fee. This cuts the total interest.
What happens if I default?
The lender can auction the pledged gold to recover the amount, so plan repayments before pledging.
Is this gold loan calculator accurate?
It uses the standard reducing-balance EMI formula and is accurate for the rate and tenure you enter. Real rates and fees vary.
Is this gold loan calculator free?
Yes. It runs entirely in your browser and no financial details are uploaded.
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Disclaimer
An indicative estimate based on the standard reducing-balance EMI formula and the LTV, rate and tenure you enter. Actual amounts, caps, rates and fees vary by lender and change with the market. Confirm terms with your bank before pledging gold.