How to use the gold loan calculator
- Enter the net weight of your gold, without stones, and its purity.
- Enter today's 24K gold rate per gram; the default is only an example, as we don't show live prices.
- Enter the lender's interest rate and the tenure.
- Pick how you will repay: EMI, monthly interest with principal at the end, or a bullet payment.
- Optionally enter the amount you need to see its cost instead of the maximum.
Maximum loan on 22K gold (example rate ₹function(){throw Error("Attempted to call EXAMPLE_GOLD_RATE_24K() from the server but EXAMPLE_GOLD_RATE_24K is on the client. It's not possible to invoke a client function from the server, it can only be rendered as a Component or passed to props of a Client Component.")} a gram for 24K)
| Gold | Value | EMI loan | Bullet, 12 months at 10% |
|---|---|---|---|
| 10 g | ₹NaN | ₹0 | ₹0 |
| 20 g | ₹NaN | ₹0 | ₹0 |
| 50 g | ₹NaN | ₹0 | ₹0 |
| 100 g | ₹NaN | ₹0 | ₹0 |
| 200 g | ₹NaN | ₹0 | ₹0 |
Gold prices change daily, so treat these as an illustration and enter the current rate above.
How the loan is worked out
Gold value = net grams × 24K rate × karat ÷ 24
Loan ≤ LTV cap × gold value
Lenders use the published rate for your gold's exact purity; scaling the 24K rate by karat ÷ 24 is a close approximation. For a bullet loan, the loan plus the interest due at the end must be within the cap. The cap itself depends on the loan size, so near ₹2.5 lakh and ₹5 lakh the loan stays at the threshold rather than jumping above it at a lower LTV.
Before you pledge gold
- Compare rates: banks are usually cheaper than NBFCs, which can charge much more on small loans.
- Check the processing fee, valuation fee and any penal charges in the key facts statement.
- Leave a margin below the maximum, so a fall in the gold price doesn't force a part-payment.
- If you can't repay, the lender can auction the gold after due notice; once you repay in full, the lender must return it within 7 working days or pay you ₹5,000 for each day of delay.
Frequently asked questions
How much gold loan can I get per gram?
The lender values only the gold content (net weight after removing stones) at the price for its purity, then lends up to RBI's LTV limit. At an example 24K rate of ₹NaN a gram, 22K gold is worth about ₹NaN a gram, so a small loan at 85% LTV gives about ₹NaN a gram. Enter the day's rate for an up-to-date figure.
What is the LTV limit for gold loans in 2026?
Under the RBI (Lending Against Gold and Silver Collateral) Directions, 2025, in force for all banks and NBFCs from 1 April 2026, consumption loans can be up to 85% of the gold's value for loans up to ₹2.5 lakh, 80% for loans above ₹2.5 lakh and up to ₹5 lakh, and 75% above ₹5 lakh. The LTV must be maintained throughout the loan, not just at the start.
How is LTV worked out for a bullet repayment gold loan?
For bullet loans, where principal and interest are paid together at the end, RBI requires the LTV to be tested on the total amount repayable at maturity, not just the principal. So the most you can borrow is lower than with an EMI loan. Bullet loans can run for at most 12 months, and can be renewed after the interest is paid.
How do lenders value my gold?
At the lower of the average closing price of the past 30 days and the previous day's closing price, as published by the India Bullion and Jewellers Association or a SEBI-regulated commodity exchange, for the purity of your gold. Only the gold content counts; stones, gems and making charges add nothing. The lender must give you a valuation certificate showing purity and net weight.
Is there a limit on how much gold I can pledge?
Yes. RBI caps gold ornaments at 1 kg and gold coins at 50 grams per borrower across all loans. Primary gold such as bars and biscuits, and gold-backed financial assets like ETF or mutual fund units, are not accepted as collateral.
Which repayment option is cheapest?
EMI costs the least interest because principal falls every month. On ₹3 lakh at an example 10% for 12 months, EMI repayment costs ₹0 in interest, paying interest monthly costs ₹0, and a bullet loan with simple interest costs ₹0. Some lenders compound unpaid interest, which costs more.