This gold loan calculator estimates how much you can borrow against your gold jewellery and what the loan will cost. Type the weight in grams, the purity, today's 24 carat price per gram and the rate the lender quotes. It applies the RBI loan to value limits, then shows the EMI if you repay monthly and the interest if you repay everything at the end.
Gold loans are quick and need little paperwork, which makes them popular for short, urgent needs. The calculator helps you see the real cost before you pledge.
At a glance
- Loan to value cap85% up to ₹2.5 lakh, 80% up to ₹5 lakh, 75% above
- Bullet loansUp to 12 months for consumption loans
- Example20 g of 22 carat at ₹7,000 a gram (24 carat)
- Gold value₹1,28,333
- Loan at 85%₹1,09,083
- Not countedStones, wax and other non gold parts
How the gold loan calculator works
- Gold value: weight × price per gram for 24 carat × purity ÷ 24. 20 grams of 22 carat at ₹7,000 a gram for 24 carat is 20 × 7,000 × 22 ÷ 24 = ₹1,28,333.
- Loan to value: RBI caps how much of that value can be lent. Under RBI's current gold loan directions for new loans, the cap is 85% when the loan is up to ₹2.5 lakh, 80% up to ₹5 lakh and 75% above that.
- Loan amount: ₹1,28,333 × 85% = ₹1,09,083.
- Cost: at 10% for 12 months, the EMI is ₹9,590, or the interest on a bullet loan is about ₹10,908 paid at the end.
The price per gram you type should be the market rate for 24 carat gold that day. Lenders use their own valuation, often based on an average of recent prices, and may value lower.
Gold loan per gram: what decides the amount
- Purity: 22 carat jewellery counts at about 91.7% of the 24 carat price, 18 carat at 75%. The lender tests purity at the branch.
- Net weight: stones, beads and solder are deducted. A heavy necklace with stones may count for much less than its total weight.
- Lender policy: many lenders stay below the RBI cap.
- Loan size tier: bigger loans fall under the lower 80% or 75% caps.
For 100 grams of 22 carat at the same price, the gold is worth about ₹6.42 lakh. That puts the loan in the above ₹5 lakh tier, so the cap is 75% and the loan is about ₹4.81 lakh.
Repayment types: EMI, bullet and interest only
| Type | How it works | Best for |
|---|---|---|
| EMI | Equal monthly payments of interest and principal | Steady monthly income |
| Bullet | Principal and interest paid together at the end, up to 12 months for consumption loans | A known lump sum coming soon |
| Interest monthly, principal at end | Pay interest each month, return the loan at the end | Keeping the monthly bill small |
Bullet loans often carry a slightly higher rate. Interest that is not paid on time may be charged at a penal rate, so read the scheme terms.
Gold loan interest rate calculator: comparing offers
On ₹1 lakh for 12 months, each 1% of rate costs about ₹1,000 in interest. Gold loan rates vary widely between banks, NBFCs and schemes, and the same lender may have several schemes with different rates and loan to value levels. A scheme with a high per gram amount often has a higher rate.
Also compare:
- processing and valuation fees,
- penal interest for delays,
- auction rules if you default, including the notice period,
- whether part payment is allowed without charge.
Gold loan vs a personal loan
A gold loan is secured, so rates are usually lower than unsecured personal loans and approval is quick even with a thin credit history. But you risk losing jewellery that may have family value if you cannot repay. For a longer need, a personal loan with a fixed EMI can be easier to manage. For very short needs, an overdraft against an FD may be cheaper still.
Safety tips for pledging gold
- Borrow from a regulated bank or NBFC and get a written receipt listing each item, its weight and purity.
- Keep the loan small enough to repay on time; gold prices can fall, and lenders may ask for more gold or a part payment if the value drops.
- Ask how and when the lender will notify you before an auction.
- Collect your jewellery and check it when you close the loan.
This gold loan amount calculator follows the general RBI limits. Your lender's valuation and scheme decide the final figures. Read RBI's gold loan directions on the RBI site, and browse other loans from the EMI calculator section.
Frequently asked questions
How much gold loan can I get per gram?
Up to 85% of the gold's value for loans up to ₹2.5 lakh under RBI rules. For 22 carat gold at ₹7,000 a gram for 24 carat, that is about ₹5,454 per gram. Lenders may give less.
How is gold loan interest calculated?
For EMI loans, like any reducing balance loan. For bullet loans, simple interest on the loan for the months used, paid with the principal at the end.
What is the maximum tenure of a bullet gold loan?
Bullet repayment gold loans for consumption purposes can run up to 12 months under RBI rules.
Do stones in jewellery count for a gold loan?
No. Lenders count only the net weight of gold after removing stones and other material.
What happens if I cannot repay a gold loan?
The lender sends notices and may auction the gold after the notice period. Any amount left after clearing the dues is returned to you.
Can I repay a gold loan early?
Most lenders allow early closure. Some charge a minimum interest period. Check the scheme terms.