Gold Loan Calculator
Check your gold loan eligibility, EMI and total repayment amount
Enter Your Gold Details
Banks: 8–12% · NBFCs: 12–18% · Local: 18–24%
Max Loan Amount
₹
Monthly EMI
₹
Loan Repayment Breakdown
Enter the gold weight above to calculate your loan eligibility.
Lender Comparison
Compare gold loan terms across different types of lenders in India.
| Lender Type | Max LTV | Interest Rate | Processing Fee | Safety |
|---|---|---|---|---|
|
Bank
SBI, HDFC, ICICI etc.
|
75% | 8–12% p.a. | 0.5–1% | High |
|
NBFC
Muthoot, Manappuram etc.
|
75% | 12–18% p.a. | 1–2% | Medium |
|
Local Moneylender
Unregulated lenders
|
60–70% | 18–36% p.a. | Varies | Low |
* Rates and LTV are indicative as of 2026. Actual terms vary by lender and applicant profile.
Never Pledge Gold with Unlicensed Lenders
Unregistered moneylenders operate outside RBI guidelines. They may charge usurious interest rates, manipulate gold weights, or withhold pledged gold. Always borrow from RBI-regulated banks or NBFCs that display their registration number prominently. If a lender cannot show their NBFC licence number, do not pledge your gold with them.
Gold Loan Best Practices
Compare Lenders First
Even a 1–2% difference in interest rate can save thousands over the loan tenure. Always get quotes from at least two lenders.
Read the Loan Agreement
Check the prepayment penalty, processing fees, and auction clause carefully before signing. Know exactly when the lender can auction your gold.
Use Hallmarked Gold
BIS-hallmarked jewellery is appraised faster and at a more accurate value, often resulting in a higher loan amount compared to non-hallmarked gold.
Repay on Time
Gold loans have no impact on your credit score typically, but missing payments leads to penalty interest and eventual auction of your pledged gold.
Watch the Appraisal
Be present when your gold is weighed and appraised. Note the weight and purity recorded. Get a written acknowledgement with the gold item description.
Borrow Only What You Need
Just because you are eligible for the maximum LTV doesn't mean you should borrow that amount. A lower loan reduces your interest burden and repayment risk.
Frequently Asked Questions
The RBI has set a maximum LTV ratio of 75% for gold loans issued by banks and NBFCs in India. This means if your gold is worth ₹1,00,000, the maximum loan you can get is ₹75,000. Some lenders offer slightly less to manage risk.
Gold loan interest rates vary by lender: banks offer 8–12% p.a., NBFCs like Muthoot and Manappuram charge 12–18% p.a., and unregulated lenders charge 18% or more. Always compare rates before pledging your gold.
The monthly EMI is calculated using the formula: EMI = P × r(1+r)^n / ((1+r)^n − 1), where P is the loan principal, r is the monthly interest rate (annual rate ÷ 12), and n is the number of months. Our calculator does this automatically.
Most banks allow prepayment without penalty after a minimum lock-in period (usually 3–6 months). NBFCs may charge 1–2% prepayment penalty. Always check the loan agreement before taking the loan.
If you default, the lender is legally entitled to auction your pledged gold after giving you notice (typically 14–30 days). The auction proceeds are used to settle the loan. Any surplus after recovery must be returned to you, but you lose the gold permanently.
Gold loans are typically cheaper (8–18% vs 15–24% for personal loans), faster to process (same day), and do not require a credit score check. However, your gold is at risk if you cannot repay. Personal loans are unsecured so your assets are safe, but they cost more.