Gold Loan Calculator
How much you can borrow against ornaments, and what it costs.
RBI caps gold loan LTV at 75% of the pure gold value. At ₹9,000 per gram for 22-carat, 100 grams of ornaments values at about ₹9 lakh and supports a loan of up to ₹6.75 lakh. Bank rates run 9-13%; NBFC rates on bullet-repayment schemes can exceed 20%.
Your Inputs
Eligible loan
Principal
₹6.75 L
Interest
₹40.9 K
Monthly EMI
₹59,658
Total interest
₹40,891
How this works
Only the gold content counts
Lenders value the pure gold in the ornament. Stones, kundan work and making charges are excluded, so 100 grams of jewellery may be assessed as 85-90 grams of gold. Coins are accepted only up to 50 grams and must be bank-issued.
Auction and margin calls
If gold prices fall, the LTV breaches 75% and the lender can demand part-prepayment. Sustained default leads to auction after statutory notice. Gold loans are cheap only when repaid on schedule.
Cheaper than the alternatives
At 9-13%, a gold loan is materially cheaper than a personal loan at 11-24% or credit card revolving credit at 36-42%, and it needs no income proof or credit score. Use it for short, defined needs — not to fund consumption.
Frequently asked questions
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