Gold Loan Calculator
Estimate loan amount, EMI, and interest based on gold weight, purity, LTV, rate, and tenure.
This calculator provides indicative estimates. Actual loan eligibility, EMI, and interest rates may vary by bank or NBFC.
Gold Loan Calculator – Estimate Gold Loan Amount & EMI
A Gold Loan Calculator helps you estimate the eligible loan amount, monthly EMI, total interest payable, and total repayment amount based on the value of your gold jewellery.
Gold loans are secured loans where gold jewellery is pledged as collateral. The loan amount depends on factors such as gold weight, purity (karat), prevailing gold rate, loan-to-value (LTV) ratio, interest rate, and loan tenure.
What Is a Gold Loan Calculator?
A Gold Loan Calculator is an online tool that estimates:
- Eligible gold loan amount
- Monthly EMI based on interest rate and tenure
- Total interest payable over the loan period
- Total amount payable at the end of the tenure
This calculator provides quick estimates using standard gold loan calculation methods followed by banks and NBFCs in India.
How Does the Gold Loan Calculator Work?
The calculator uses the following inputs:
- Gold weight (in grams)
- Gold purity (24K, 22K, or 18K)
- Loan-to-Value (LTV) percentage
- Annual interest rate
- Loan tenure (in months)
Based on these inputs, it calculates the eligible loan amount and applies a standard reducing-balance EMI formula to estimate repayment details.
Gold Loan Calculation Example
Let’s understand how a gold loan is calculated using a simple example.
- Gold Weight: 50 grams
- Gold Purity: 22 Karat
- Loan-to-Value (LTV): 75%
- Interest Rate: 9% per annum
- Loan Tenure: 12 months
Eligible Loan Amount: ₹4,63,862 (approx.)
Monthly EMI: ₹40,565 (approx.)
Total Interest Payable: ₹22,923 (approx.)
Total Amount Payable: ₹4,86,785 (approx.)
Result: The Gold Loan Calculator helps you clearly understand your loan eligibility and repayment obligation before pledging gold.
Frequently Asked Questions (FAQs)
What is a gold loan?
A gold loan is a secured loan where gold jewellery is pledged as collateral in exchange for funds from a bank or NBFC.
How is the gold loan amount calculated?
The loan amount is calculated based on gold weight, purity, prevailing gold rate, and the lender’s loan-to-value (LTV) ratio.
What is LTV in a gold loan?
LTV (Loan-to-Value) is the percentage of gold value that a lender is willing to offer as a loan. As per RBI guidelines, it is usually capped at 75%.
Does gold purity affect loan eligibility?
Yes. Higher purity gold (such as 24K or 22K) attracts a higher valuation, resulting in a higher eligible loan amount.
Is EMI mandatory for gold loans?
Many lenders offer EMI-based repayment, while some allow interest-only payments with principal repayment at maturity.
Is the Gold Loan Calculator accurate?
The calculator provides indicative estimates based on standard formulas. Actual loan eligibility and EMI may vary across lenders.