Gold Loan Calculator
What is a gold loan calculator?
A gold loan calculator is an online tool that tells you a few important things:
- The gold weight you need for your expected loan amount
- The monthly EMI you will have to pay
- Total repayment amount
It uses your expected loan amount, loan tenure, and live 22K gold loan rate to give you a rough estimate of the weight. Using a gold interest calculator helps you estimate your EMI, total interest, and repayment amount before applying with a bank or NBFC.
How a loan against gold works
Getting a loan against gold is one of the simplest ways to get credit in India. You pledge eligible gold ornaments to the lender. The lender checks the gold's purity, net weight, ownership, and value before deciding on your eligible loan amount. The mathematical way banks check the value of your gold is:
Value = Weight × Market Rate × (Actual Karat / 24)
Because gold acts as collateral, lenders are less focused on your salary or credit score, especially for smaller loans. Under the 2026 RBI rules, loans up to ₹2.5 lakh no longer require formal income verification or credit checks. Larger loans, however, still require a full credit appraisal. Speaking of appraisals, if you're hoping for a bigger loan by landing that next big raise, try a salary hike calculator to check your gold loan eligibility.
Understanding LTV in gold loan agreements
LTV in a gold loan stands for Loan-to-Value. It's just a way of saying what percentage of the gold's value the bank will give you as a loan. Let's say you have gold worth ₹1,00,000 and the LTV is 75%. The bank will give you ₹75,000. The remaining 25% is the bank's safety margin, which it retains in case of a dramatic collapse in the price of gold.
The 2026 RBI tiered structure
Recently, the Reserve Bank of India (RBI) has introduced a tiered system for LTV:
| Loan Amount | Maximum LTV |
|---|---|
| Up to ₹2.5 Lakh | 85% |
| ₹2.5 Lakh to ₹5 Lakh | 80% |
| Above ₹5 Lakh | 75% |
A thing to remember: A higher LTV means you get more cash in hand, but keep in mind that banks might charge a slightly higher interest rate for these loans, as it leaves banks less wiggle room if gold prices fall.
How gold purity affects your loan
When you use the gold loan EMI calculator, you will be asked for the Karat or purity of your gold. This is because banks only lend money based on the actual gold content. As the 22K gold loan rate today is the standard for jewellery, our tool uses this as a baseline. Other than that, standard charges include a small processing fee (0.5% to 1%) and a valuation fee (to pay the person who checks your gold's purity).
Gold loan vs. personal loan: Which is better?
Choosing between a gold loan and a personal loan depends on how fast you need the money and your credit history.
| Feature | Gold Loan | Personal Loan |
|---|---|---|
| Interest rate | Lower — 8.5%–12% for banks, up to 17% for some NBFCs | Higher (usually 11%–24%) |
| Credit score | Not very important | Very critical |
| Speed | 15 minutes to 2 hours | 1 to 5 days |
| Documentation | Only ID proof and gold | Salary slips, ITR, and bank statements |
| Repayment | Multiple flexible options | Mostly fixed EMI |
Factors that change your gold loan EMI
Your monthly payment is not just about the gold weight. Three main things change your EMI:
Current Gold Rate
If the market price drops, you might be asked for a higher EMI (or additional collateral). Check the live prices with a gold rate calculator.
Repayment Schemes
Depending on the lender, you may choose EMI-based repayment, interest-only repayment, or bullet repayment (principal is repaid at the end of the tenure).
Tenure
Gold loans are often short-term loans, which can be anything from 6 months to 24 months. Longer the duration, lesser the EMI but higher is the overall interest you pay.
Check rates from top banks (May 2026)
Before choosing, compare the starting gold loan interest rates:
SBI
8.70% p.a.
HDFC Bank
Starting at 9.00% p.a.
PNB
8.50% p.a.
Muthoot Finance
13.9% p.a.
Canara Bank
Starting at 8.75% p.a.
How to use the Jar gold loan calculator
Use the Jar Gold Loan Calculator to estimate your loan amount, required gold weight, EMI, total interest, and total payable in just a few steps. Enter your desired loan amount, gold purity, interest rate, and tenure. The calculator will show you a repayment breakdown using the applicable LTV and live gold rate.
Is my gold safe?
Regulated banks and NBFCs keep gold in bank-grade lockers with 24/7 security, CCTV, and insurance coverage (you're compensated if damaged or lost). As per RBI rules, if the lender delays beyond 7 working days, they must pay you ₹5,000 per day of delay as compensation.
Did You Know?
Gold coins must be 22K or higher to get a loan against them. RBI's recent update also allows silver-backed loans, including up to 10kg of silver ornaments or 500g of silver coins (both must be ≥92.5% purity).
Conclusion: Start building your gold reserve today
This gold loan calculator will help you figure out how much your gold is worth, see if you qualify for a gold loan, and compare repayment choices. However, if you don't already have enough gold to pledge, building a small digital gold reserve over time can help create a future financial backup.
You can start with Jar by saving just ₹10 a day in 24K digital gold. Over time, these small savings can grow into a useful financial backup that you can use to get a gold loan. The Jar app lets you start saving in 24K digital gold from small amounts, without jewellery-making charges.