Gold Loan Calculator

The estimator takes your gross gold weight, applies a purity multiplier (22/24 for 22K standard gold, 18/24 for 18K studded gold), and evaluates the market value using live global spot prices. It then multiplies this collateral value by the selected Loan-to-Value (LTV) ratio (typically capped at 75% in India, and 50%-80% globally) to determine your maximum eligible principal payout.

Use our calculator to enter your exact gold weight and purity to instantly check your maximum eligible loan limit based on RBI's 75% LTV guidelines.

Under the Equated Monthly Installment (EMI) scheme, you pay a fixed sum each month that pays off both interest and a portion of the principal. Under the Monthly Interest scheme, you pay interest monthly and pay the entire principal at the end. Under the Bullet Repayment scheme, you make no monthly payments; instead, you pay the entire principal plus simple accumulated interest in one lump sum at the end of the tenure.

In India, gold loans are highly structured and regulated by the Reserve Bank of India (RBI). The LTV is strictly capped at 75% of the gold metal value (excluding making charges and stone weights). Interest rates typically range from 8% to 16% per annum depending on the lender. In addition, processing fees (usually 0.5% to 2.0%) are subject to an 18% GST tax.

For a 1 Lakh loan, interest rates typically range from 8.5% to 14% annually depending on your bank and whether you choose monthly or bullet repayment. Your final cost is also affected by processing fees.

In Western markets, gold loans are frequently handled by pawn brokers or specialized lenders rather than mainstream commercial banks. The LTV is generally more conservative (ranging from 50% to 70%) to buffer against market volatility. Interest rates are quoted as monthly charges (e.g., 2% to 5% per month) rather than annual rates, and are rarely subject to retail sales taxes or GST on interest payments.

A margin call occurs if the market gold price drops significantly, reducing the value of your collateral gold. If the ratio of your outstanding loan principal to the current market gold value rises above the lender’s safety threshold (e.g., 85%), you will be asked to either repay a portion of the principal or pledge additional gold weight. Failure to meet a margin call can lead to the lender auctioning your gold.

Gold loans are secured loans, meaning the physical gold you pledge acts as collateral, reducing the lender's risk. Because the lender can auction the gold in case of default, they offer lower interest rates (typically 8%-14%) compared to unsecured personal loans or credit card balances, which carry interest rates ranging from 12% to 24%+ and require strict credit scoring.

Per gram rates are dictated by RBI's 75% LTV cap on a rolling 30-day average of 22K gold. All regulated banks and NBFCs will offer roughly the same maximum per-gram payout on any given day. You should compare interest rates and processing fees rather than the per-gram rate.

Yes, most banks and non-banking financial companies (NBFCs) allow borrowers to close their gold loan early at any point. Many lenders offer zero foreclosure charges, while some commercial banks may charge a nominal prepayment fee ranging from 1% to 2% of the outstanding loan amount if closed within the first 3 months. Check your loan contract for specifics.

If you default on your repayments, the lender will send multiple reminders and legal notices to settle the outstanding balance. If you still fail to repay within the grace period, the bank or NBFC has the legal right to auction your gold jewellery to recover their principal and accrued interest. Any surplus funds generated from the auction after settling the loan will be returned to your bank account.

Yes, lenders store pledged gold in secure, double-locked strong rooms or fireproof vaults that are under 24/7 CCTV surveillance. Before storage, the gold is assessed, weighed, and sealed in a temporary or permanent container in your presence. Mainstream banks and NBFCs also carry comprehensive insurance on all locker assets to protect against theft or natural disasters.

Banks primarily accept gold jewelry of 18K to 22K/24K purity. For gold coins, the Reserve Bank of India (RBI) permits banks to grant loans on specially minted gold coins sold by banks, up to a maximum weight limit of 50 grams per customer. Raw gold bullion bars, biscuits, or gold dust are generally not accepted for retail gold loans.

Lenders only value the net weight of pure gold metal. Before evaluating the loan eligibility, the appraiser will deduct the estimated weight of all studded diamonds, pearls, beads, and gemstones from the gross weight of the ornament. This is why you should know the exact net gold weight of your jewellery beforehand to avoid surprises.

Since gold loans are fully secured, lenders rarely reject applications due to a low CIBIL score. However, a poor credit history or recent defaults can occasionally prevent you from getting promotional interest rates. Many top-tier banks offer a minor discount (0.25% to 0.50% off the standard rate) if your CIBIL score is 750 or higher.

Because the loan is secured by physical gold, documentation is minimal. You typically only need standard KYC documents: (1) Identity proof (e.g., Aadhaar card, PAN card, passport, or driving license), (2) Address proof (e.g., utility bills, voter card, or Aadhaar), and (3) passport-sized photographs. Income proof like salary slips or IT returns is usually not mandatory.

Yes. Anyone who owns gold ornaments can apply for a gold loan, including students, housewives, retired individuals, and those without steady employment or active income streams. Lenders do not focus on employment history or monthly earnings because the loan is completely secured by the intrinsic value of the pledged gold.