Gold Loan Calculator
Calculate the maximum loan on your gold jewellery based on weight, purity and LTV ratio. Compare EMI and bullet repayment.
Gold loans are a uniquely Indian financial product — India holds an estimated 25,000 tonnes of household gold, making it the world's largest gold-holding nation. Gold loans allow you to unlock liquidity against your idle gold jewellery without selling it. They are one of the fastest loan products to disburse (often same-day), require minimal documentation, and have no end-use restriction. This calculator helps you estimate the maximum loan amount based on your gold's weight and purity, and compare EMI versus bullet repayment options.
📋 How to Use This Calculator
Enter the weight of your gold in grams, select the purity in karats (most jewellery is 22K), and input the current market price per gram for 22K gold (check current MCX or bank rate). Set the LTV (Loan-to-Value) ratio — RBI mandates a maximum of 75% for regulated lenders. Enter the interest rate and tenure. Toggle between EMI (regular monthly payments of principal + interest) and Bullet (monthly interest only, return principal at end). The calculator shows gold market value, maximum eligible loan, and repayment details.
💡 Key Facts & Information
RBI has capped the LTV for gold loans from NBFCs at 75% and for banks following the same. This means for gold worth ₹1 lakh, the maximum loan is ₹75,000. Gold is valued at the purity-adjusted weight × current rate, not at the jewellery making charges or retail value. Most lenders use the rate published by the India Bullion and Jewellers Association (IBJA) or the bank's own valuation. Gold loan interest rates range from 7% to 29% p.a. — government banks offer 7–12% while Muthoot Finance and Manappuram charge 10–28% with faster processing.