Gold Loan EMI Calculator

Gold loans are short-term and secured against jewellery, so rates sit between secured and unsecured borrowing. Enter the loan amount, rate and tenure for a standard EMI-based repayment.

A ₹3,00,000 loan at 11% over 2 years has an EMI of ₹13,982, and costs ₹35,577 in total interest.

Gold loan amount

₹

Interest rate (per year)

Loan tenure

Monthly EMI

₹13,982

for 2 years

Principal

₹3,00,000

Total interest

₹35,577

Total payment

₹3,35,577

Principal vs interest

Principal: ₹3,00,000 (89.4%)
Total interest: ₹35,577 (10.6%)

Compare tenures

EMI and total interest at different tenures
Tenure	EMI	Total interest	Total payment
6 months	₹51,616	₹9,698	₹3,09,698
1 year	₹26,514	₹18,174	₹3,18,174
2 years	₹13,982	₹35,577	₹3,35,577
3 years	₹9,822	₹53,576	₹3,53,576
4 years	₹7,754	₹72,171	₹3,72,171

Amortisation schedule

How each instalment splits between interest and principal.

Monthly EMI

₹13,982

2 years

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.

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 it works

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.

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.

Example calculation

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

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. Bullet repayment, interest-only and overdraft structures are common. This calculator covers the standard EMI structure; 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.