Gold Loan Calculator
Find out how much gold you need to pledge, your monthly EMI, and total interest payable — based on today's live 24K gold rate.
What Is a Gold Loan?
A gold loan is a secured loan where you pledge your gold jewellery or coins as collateral in exchange for immediate cash. Unlike personal loans, no credit score or income proof is typically required — the gold itself is the security. You get the gold back once you repay the full loan amount with interest.
Gold loans are among the fastest credit products in India — many banks and NBFCs disburse within hours. They're especially popular for short-term needs like medical emergencies, business working capital, or seasonal cash flow gaps.
What Is a Gold Loan Calculator?
A Gold Loan Calculator helps you estimate three critical things before you walk into a bank or NBFC: how much gold you need to pledge, what your monthly EMI will be, and how much total interest you'll pay over the loan tenure. It uses today's live gold price and the standard RBI-mandated 75% Loan-to-Value (LTV) ratio to give you a realistic, up-to-date picture.
How to Use This Calculator
Select Your Gold Purity
Choose 22K, 24K, or 18K based on the jewellery or coins you plan to pledge. Higher karat means higher value per gram and less gold needed.
Enter the Loan Amount You Need
Drag the slider to the loan amount you require — from ₹10,000 up to ₹50 lakhs.
Set Interest Rate & Tenure
Use your lender's quoted rate (7–28% range covers banks to NBFCs). Set tenure from 3 to 36 months. Results update instantly.
How the Calculations Work
Gold Weight Required
effectiveRate = 24K rate/gram × karat multiplier
Gold needed (g) = Loan Amount ÷ (effectiveRate × 0.75 LTV)
Monthly EMI
r = annual interest rate ÷ 12 ÷ 100
n = tenure in months
EMI = P × r × (1 + r)^n ÷ ((1 + r)^n − 1)
Worked Example — ₹2,00,000 at 12% for 12 months, 22K gold
24K rate ≈ ₹9,600/g · 22K rate = 9,600 × 0.916 ≈ ₹8,794/g
Gold needed = 2,00,000 ÷ (8,794 × 0.75) ≈ 30.3 grams
r = 12% ÷ 12 ÷ 100 = 0.01
EMI = 2,00,000 × 0.01 × (1.01)^12 ÷ ((1.01)^12 − 1) ≈ ₹17,747
Total payable = 17,747 × 12 ≈ ₹2,12,964
Total interest = ₹12,964
What Is LTV and Why Does It Matter?
LTV (Loan-to-Value) is the percentage of your gold's market value that a lender will give you as a loan. The RBI caps gold loan LTV at 75% for banks and most NBFCs.
Example: If you pledge gold worth ₹1,00,000 in the market, the lender will give you a maximum of ₹75,000 as a loan. This means to borrow ₹75,000 you must pledge gold worth ₹1,00,000.
Factors That Affect Your Gold Loan
Gold Price
Rising gold prices mean you can borrow more for the same weight of gold. Our calculator uses today's live rate.
Karat Purity
24K gold fetches the highest value per gram. 22K is most common for jewellery loans. 18K and below command lower value.
Interest Rate
Rates vary from ~8–9% at banks to 20–28% at some NBFCs. Always compare lenders before committing.
Loan Tenure
Longer tenure = lower EMI but more total interest. Shorter tenure = higher EMI but you save significantly on interest.
LTV Ratio
RBI mandates a maximum LTV of 75% for gold loans from banks. Some NBFCs may offer lower LTV (65–70%).
Processing Fees
Most lenders charge 0.1–1% processing fee on the loan amount. This isn't included in EMI — factor it into your total cost.
A Smarter Alternative: Save in Digital Gold with Jar
Instead of pledging your gold in an emergency, build a digital gold savings buffer with Jar — so you always have a liquid asset ready:
- Start with as little as ₹10/day in 24K digital gold.
- Your gold is stored in insured vaults by MMTC-PAMP — no risk of theft.
- Sell any amount anytime and receive cash instantly.
- No making charges, no locker fees, no pledging required.