Gold loan planning
Gold Loan EMI Calculator.
Estimate your monthly EMI for a loan against your gold jewelry or coins — usually the fastest, lowest-rate way to borrow for a short-term need.
- Principal amount
- ₹2,00,000
- Total interest
- ₹21,496
- Total amount
- ₹2,21,496
| Year | Principal | Interest | Balance |
|---|---|---|---|
| 1 | ₹95,025 | ₹15,723 | ₹1,04,975 |
| 2 | ₹1,04,975 | ₹5,772 | ₹0 |
How your gold loan amount is calculated
Lenders assess your gold's weight and purity, multiply by the current gold rate, and apply an RBI-capped Loan-to-Value ratio of up to 75%. Gold loans typically carry among the lowest rates of any unsecured-feeling product (8-12% at banks, higher at NBFCs) precisely because the collateral is immediately liquid — but tenures are short, usually under 3 years.
Frequently asked questions
How is gold loan EMI calculated?
If you choose EMI repayment, gold loan EMI uses the same formula as any amortizing loan: EMI = P × r × (1+r)^n / ((1+r)^n − 1). Many gold loans also offer bullet repayment (pay all interest and principal at the end) or interest-only monthly payments — this calculator assumes standard EMI repayment.
How much loan can I get against my gold?
The loan amount is calculated as: (weight in grams) × (purity factor) × (current gold rate per gram) × LTV%. RBI caps the LTV ratio at 75% of the gold's value, so a higher-purity, heavier item gets you a proportionally larger loan.
What's the typical tenure for a gold loan?
Gold loans are typically short-term, running 3 months to 3 years, since the collateral (physical gold) is held by the lender and the loan is meant to bridge a temporary need — not to be a long-term financing product like a home or car loan.
What happens if I can't repay my gold loan?
The lender can auction your pledged gold to recover the outstanding amount after a notice period defined in your loan agreement — this is the collateral that makes gold loans easier to get and cheaper than unsecured loans in the first place.