Gold Loan Calculator
A gold loan lets you borrow against jewellery or coins. Enter the gold you will pledge to see the largest loan it supports, then choose a repayment style to compare the interest.
Results
Monthly payment
₹0.00
- Final payment
- ₹4,44,000.00
- Total interest
- ₹44,000.00
- Total payment
- ₹4,44,000.00
- Maximum eligible loan
- ₹4,87,500
Your gold is worth ₹6,50,000.00 and supports a loan of up to ₹4,87,500.00. Borrowing ₹4,00,000.00 costs ₹44,000.00 in interest over 12 months.
Principal vs interest
- Principal₹4,00,000 (90.1%)
- Interest₹44,000 (9.9%)
Show the calculation steps
- Gold value = 100 g × ₹6,500.00 = ₹6,50,000.00.
- Maximum loan = gold value × 75% loan-to-value = ₹4,87,500.00.
- Interest is simple and paid with the principal at the end: ₹4,00,000.00 × 0.9167% × 12 = ₹44,000.00.
- Lenders may charge processing fees, valuation charges and penalties on top of the interest shown.
How much can you borrow?
Lenders value your gold by weight and purity and lend up to a set percentage of that value, called the loan-to-value (LTV) ratio. The calculator caps the loan at that eligible amount.
Three ways to repay
Gold loans usually offer three structures. In a bullet loan you pay everything at the end, and interest is simple for the tenure. With monthly interest you pay interest every month and the principal at the end. With an EMI you repay both gradually.
Bullet loans keep monthly cash flow free but you must find the whole amount at once. Monthly interest keeps the balance constant.
Formula
Eligible loan = gold weight × value per gram × LTV ÷ 100
Bullet: interest = P × r × n
Monthly interest: payment = P × r
EMI = P × r × (1 + r)^n ÷ ((1 + r)^n − 1)
Where:
- P
- = Loan amount
- r
- = Monthly interest rate
- n
- = Number of months
- LTV
- = Loan-to-value ratio
Example calculation
100 g of gold, 75% loan-to-value, ₹4,00,000 for 12 months at 11% (bullet)
Inputs
- Gold Weight
- 100 g
- Gold Value per Gram
- ₹6,500
- Loan-to-Value
- 75 %
- Loan Amount
- ₹4,00,000
- Interest Rate
- 11 %
- Tenure
- 12 months
- Repayment Type
- Bullet: principal and interest at the end
Result
- Monthly payment
- ₹0.00
- Final payment
- ₹4,44,000.00
- Total interest
- ₹44,000.00
- Total payment
- ₹4,44,000.00
- Maximum eligible loan
- ₹4,87,500
Step-by-step
- Gold value = 100 g × ₹6,500.00 = ₹6,50,000.00.
- Maximum loan = gold value × 75% loan-to-value = ₹4,87,500.00.
- Interest is simple and paid with the principal at the end: ₹4,00,000.00 × 0.9167% × 12 = ₹44,000.00.
Important notes
- The gold rate is an input: use the valuation your lender gives you, not the market price.
- Valuation, processing and auction charges are not included.
Disclaimer: This calculator provides estimates for informational purposes and should not be considered financial advice. Actual figures from lenders, banks and investment products can differ because of fees, taxes, rounding rules and changing rates. Consult a qualified professional before making financial decisions.
Frequently asked questions
How is the gold loan amount decided?
Lenders value the gold's weight and purity and lend up to a percentage of that value, the loan-to-value ratio.
Which repayment option is cheapest?
For the same rate, a bullet or interest-only loan costs the most in total interest because the principal stays outstanding the whole time. An EMI reduces the balance each month.
What happens if I cannot repay?
The lender can auction the pledged gold after giving notice, so only borrow what you are confident you can repay.
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