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Gold Loan EMI Calculator

Calculate monthly EMI, bullet repayments, and maximum loan eligibility on your gold jewellery. Evaluates net gold weight, 18K/22K purity, and RBI's tiered loan-to-value limit (85% of the gold's value up to ₹2.5 lakh, 80% up to ₹5 lakh, 75% above).

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Calculator and results

A ₹2,74,800 gold loan at 10.5% over 1 year has an EMI of ₹24,223 and costs ₹15,879 in total interest. On a bullet plan you would instead pay ₹2,405 interest a month and ₹3,03,654 in all.

Gold Loan Parameters

RBI Tiered LTV: 80% (₹2.5 Lakh to ₹5 Lakh (80% LTV))

Calculate loan eligibility against your gold ornaments or work out monthly EMI and bullet repayments.

Exclude stone and enamel weight.

Banks evaluate 18K to 22K jewellery.

₹

Market rate used by lender.

Total Market Value of Gold:₹3,43,500
Max Eligible Loan (80% LTV):₹2,74,800
%

Bank rates typically range from 9.0% to 14% p.a.

Gold loans usually have terms from 3 to 36 months.

Repayment Summary

Monthly EMI

₹24,223

For 12 months

Total Interest Payable

₹15,879

At 10.5% p.a. over 12 months

Loan Principal:₹2,74,800
Interest Rate:10.5% p.a.
Tenure:12 Months
Total Interest:₹15,879
Total Amount Repayable:₹2,90,679
RBI Gold Loan Mandate:

As per Reserve Bank of India Master Directions on Gold Loans, LTV is tiered: 85% up to ₹2.5 Lakh, 80% for ₹2.5 Lakh to ₹5 Lakh, and 75% for loan amounts above ₹5 Lakh.

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Gold loan structures differ widely between lenders. Confirm your scheme before relying on these figures.
What it is:
A gold loan calculator using a standard EMI structure.
What it calculates:
The EMI, total interest and total repayment on an amount borrowed against gold.

Key Assumptions

  • Assumes regular EMI repayment; many gold loans use bullet or interest-only structures instead.
  • The amount you can borrow depends on the gold's assessed value and the lender's loan-to-value cap.
  • Valuation and processing charges are excluded.

How does the Gold Loan EMI Calculator work?

This calculator assumes a regular EMI structure where every instalment pays interest and principal.

Many gold loans are not structured that way. Bullet repayment schemes charge interest monthly or at the end, with the full principal due on maturity, and overdraft schemes charge interest only on what you draw. Terms vary widely between banks and NBFCs.

The amount you can borrow depends on the value of the gold pledged and the loan-to-value cap the lender applies.

Worked example: gold jewellery valued at ₹2,00,000. RBI's limit lets a lender advance up to 85% of that value on a loan of up to ₹2.5 lakh, so the maximum is about ₹1,70,000. Borrowed in full at 10% a year over 12 months, the EMI is about ₹14,946 and the total interest about ₹9,348.

Many gold loans are not repaid in EMIs at all. A bullet repayment loan lets you pay the interest and principal together at the end of the term, which keeps monthly cash flow free but means a large single payment. The calculator shows both so you can compare.

For other secured and unsecured options, compare the Personal Loan EMI Calculator and the Loan Against Property EMI Calculator. To value your gold first, use the Gold Price Calculator.

How much you can borrow against gold (RBI loan-to-value limit)

Loan amountMaximum loan as % of gold value
Up to ₹2.5 lakh85%
₹2.5 lakh to ₹5 lakh80%
Above ₹5 lakh75%

Lenders value gold on its purity and net weight, excluding stones. Many lenders lend below these maximums.

Gold Loan EMI Calculator formula

EMI = P x r x (1 + r)^n / ((1 + r)^n - 1)

P
= loan amount (principal)
r
= monthly interest rate = annual rate / 12 / 100
n
= tenure in months

At 0% interest the formula collapses to EMI = P / n, which is what no-cost EMI offers use.

Gold Loan EMI Calculator: worked example

A ₹3,00,000 gold loan at 11% for 2 years

Loan amount
₹3,00,000
Interest rate
11% a year
Tenure
2 years
Monthly EMI
₹13,982
Total interest
₹35,577
Total payment
₹3,35,577

Gold Loan EMI Calculator: frequently asked questions

How much can I borrow against gold?
It depends on the assessed value of the jewellery and the lender's loan-to-value limit, which is capped by regulation. Only the gold content is valued, not making charges or stones.
Are all gold loans repaid as EMIs?
No, many gold loans are not repaid as EMIs: bullet repayment, interest-only and overdraft structures are common. The gold loan EMI calculator covers the standard EMI structure, so ask your lender which scheme you are on.
What happens if I default?
The lender can auction the pledged gold after giving notice. Because the loan is secured, defaults are dealt with faster than on unsecured loans.
Are gold loan tenures short?
Usually six months to three years. Longer tenures are less common because the lender is holding a depreciating-risk asset against a volatile price.
What is the EMI on a ₹1 lakh gold loan?
At 10% a year over 12 months the EMI is about ₹8,792. At 12% it is about ₹8,885. Gold loan rates vary widely between banks and NBFCs, so enter the rate you are quoted.

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Reviewed by Pradipta Ray, MBA (Finance) · Updated