About the Gold Loan Calculator
This gold loan calculator works out how much a bank or NBFC is likely to lend against your gold jewellery or coins, and what the loan will cost. Enter the net weight, purity in karats, the 24-karat gold rate per gram and the lender’s loan-to-value (LTV) ratio to see the value of the pure gold content and your maximum eligible loan.
Gold loans are popular in India because they are fast, need little paperwork and carry lower rates than unsecured personal loans. Lenders offer different repayment styles: a regular EMI, paying only interest each month and the principal at the end, or a bullet loan where interest and principal are both paid at maturity. Choose one to compare the monthly outgo and total interest.
Lenders value only the pure gold content (stones and wax are deducted, so use net weight if you know it). Under the RBI’s Lending Against Gold and Silver Collateral Directions, 2025, the gold is valued at the lower of the 30-day average and the previous day’s closing price for its purity (IBJA or a SEBI-regulated exchange), and consumption loans are capped at 85% of that value up to ₹2.5 lakh, 80% up to ₹5 lakh and 75% above; the calculator applies these slabs automatically on top of your lender’s LTV. For bullet loans the cap is checked against principal plus interest due at maturity, so the principal you can take is lower. The default rate of ₹14,800 per gram is a late-September 2026 retail quote — type in your lender’s rate. Bullet-loan interest is calculated as simple interest for the tenure; some lenders compound monthly, so the actual figure can be slightly higher.
With the default inputs, the loan amount is ₹230,465.60. Change any value above to recalculate instantly.
How to use the gold loan calculator
- 1Enter the net weight of your gold in grams (excluding stones).
- 2Choose its purity and enter today’s 24-karat rate per gram.
- 3Enter the lender’s maximum LTV (RBI slabs are applied for you) and, if you need less than the maximum, the amount you want.
- 4Enter the interest rate, tenure and processing fee from the lender.
- 5Switch between EMI, interest-only and bullet repayment to compare costs.
Formula and method
The lender values only the pure gold: the net weight W multiplied by the fineness F of its karat (22K = 91.6%) and the 24-karat rate per gram G. The maximum loan is that value times your lender’s LTV, but never more than the RBI slab limit: 85% of the value for loans up to ₹2.5 lakh, 80% up to ₹5 lakh and 75% above (so ₹2.5 lakh is always allowed if 85% of the gold covers it). For a bullet loan the limit applies to principal plus interest at maturity, so the maximum principal is the limit ÷ (1 + rate × months ÷ 12). If you ask for less than the maximum, the smaller amount is used.
For an EMI loan the monthly payment follows the standard reducing-balance formula with i = annual rate ÷ 12 and n months. With the interest-only option you pay L × rate ÷ 12 every month and repay the full principal at the end. For a bullet loan all interest is paid at maturity and is estimated as simple interest, L × rate × months ÷ 12. The processing fee is a percentage of the loan paid upfront.
- W
- Net gold weight in grams
- F
- Fineness (pure gold share) of the karat
- G
- 24-karat gold rate per gram
- L
- Loan amount
- i
- Monthly interest rate
- n
- Tenure in months
Worked examples
20 g of 22K gold at ₹14,800/g, 12-month EMI
20 g of 22K gold contains 18.32 g of pure gold, worth ₹2,71,136 at ₹14,800/g. 85% of that is ₹2,30,466, which is within the ₹2.5 lakh slab, so the full 85% is allowed. Repaid in 12 EMIs at 9.5%, the EMI is about ₹20,208 and total interest about ₹12,031, plus a ₹1,152 fee.
₹1,00,000 bullet loan for 6 months at 12%
A ₹1,00,000 bullet loan at 12% for 6 months accrues ₹6,000 of simple interest, paid with the principal at maturity. With the 0.5% fee (₹500) the total is ₹1,06,500. The most you could take as a bullet loan on this gold is ₹2,30,466 ÷ 1.06 ≈ ₹2,17,420, because principal plus interest must stay within the 85% limit.
50 g of 18K jewellery, interest-only for 12 months
50 g of 18K gold holds 37.5 g of pure gold, worth ₹5,55,000. 85% would be ₹4,71,750 — above ₹2.5 lakh — so the 80% slab applies: ₹4,44,000, which is within ₹5 lakh. At 10% you pay ₹3,700 interest each month and repay the principal at the end, ₹44,400 of interest in total.
Frequently asked questions
How much gold loan can I get per gram?+
Multiply the gold rate per gram by the purity and the LTV. For 22K gold with 24K at ₹14,800/g and 85% LTV, that is about ₹11,523 per gram of jewellery. Lenders use the lower of the 30-day average and the previous day’s closing price, so the figure can differ from today’s rate.
What is the maximum LTV for a gold loan in India?+
Under the RBI’s Lending Against Gold and Silver Collateral Directions, 2025, consumption loans can be up to 85% of the gold’s value when the total loan is up to ₹2.5 lakh, 80% above ₹2.5 lakh up to ₹5 lakh, and 75% above ₹5 lakh. Individual lenders may set lower limits.
Which is cheaper: EMI, interest-only or bullet repayment?+
EMI usually costs the least interest because the principal falls every month. Interest-only and bullet loans keep the full principal outstanding for the whole tenure, so total interest is higher, but monthly outgo is lower or zero.
Is the LTV different for bullet gold loans?+
Yes. Under the RBI’s 2025 directions, for bullet-repayment loans the LTV limit is checked against the total amount due at maturity — principal plus interest — so the principal you can take is lower than for an EMI loan on the same gold. Bullet consumption loans are also limited to 12 months, renewable after paying interest.
What happens if I cannot repay a gold loan?+
The lender will send notices and can eventually auction the pledged gold to recover the dues, returning any surplus to you. Many lenders let you renew the loan by paying the interest due.
Do stones in jewellery count towards the gold loan?+
No. Lenders deduct the weight of stones, wax and other impurities and value only the net gold content, which is why your loan may be lower than expected for studded jewellery.
Results are estimates for educational purposes and are not financial advice. Rates, fees and terms vary — confirm with your lender or a licensed advisor before making decisions.