Gold Loan Calculator

The loan amount you can get against your gold is not based only on how many grams you have. But, three key factors decide it - and all three keep changing:

• Today’s gold rate
• The purity of your jewellery (18KT, 22KT, etc.)
• The loan-to-value (LTV) ratio set by the lender (maximum 75% as per RBI rules)

Let’s make this simple.

Suppose you have 50 grams of 22KT gold. If today’s gold price is ₹15,001 per gram, your gold’s total value comes to around ₹6.88 lakh.

Now, lenders don’t give the full value as a loan. They can give up to 75% of this value, which means you can get about ₹5.16 lakh.

If the same gold was 18KT instead of 22KT, the loan amount would drop to around ₹4.22 lakh - because purity is lower.

And here’s the important part: If gold prices change tomorrow, your loan eligibility also changes.

That’s exactly why this gold loan calculator is useful. It automatically uses the latest gold rate and gives you a realistic estimate of how much loan you can get - right now.

• Most people have two basic questions before taking a gold loan:
• Kitna loan milega? - Loan amount
• Kitna wapas dena padega? - Loan+ Interest amount

This calculator answers both - instantly, without you having to visit a branch.

Eligible Loan Amount - This is the maximum amount you can get based on your gold’s weight, purity and today’s gold rate. Keep in mind, the final amount you receive may be slightly lower depending on the lender’s scheme, but this gives you a very close estimate.

Monthly EMI - This shows how much you’ll need to pay every month if you choose EMI repayment. For short-term gold loans (usually 3 to 12 months), EMIs are often more manageable than people expect.

For example: If you take a ₹2 lakh loan at 9.5% for 12 months, your EMI will be around ₹17,500 per month.

Total Interest Payable - This tells you the actual cost of the loan in rupees, not just the percentage. It’s especially useful when comparing loan tenures. For example, a shorter tenure may have higher EMI, but you’ll pay less total interest.

Total Repayment Amount - This is the total amount you will repay - principal plus interest, shown in one number for complete clarity.

You can adjust your gold weight, purity, tenure, or interest rate and see results instantly. This helps you plan your gold loan better, compare options and walk into the branch already knowing what loan amount and EMI to expect.

It's easy to plan your loan with our smart gold loan interest calculator. You only need four inputs, and it takes less than 10 seconds.

Step 1: Enter your gold weight or Loan Amount - Add the estimated total weight of the gold jewellery you plan to pledge (in grams). If you don’t know the weight, you can add your required loan amount. The calculator will tell how much gold you will need to get that loan amount.

Step 2: Select gold purity (karat) - Choose the purity of your gold - usually 22KT for most Indian jewellery. You can check the karat on your jewelry BIS hallmark stamp:

• 999 = 24K
• 916 = 22K
• 833 = 20K
• 750 = 18K

Step 3: Choose tenure and interest rate - Select how long you want the loan -  typically between 3 and 12 months. You can use the default interest rate for an estimate, or enter the exact rate offered by your lender for more accurate results.

As soon as you enter or change any value, the calculator automatically shows:

Your eligible loan amount or required gold jewelry weight.

Monthly EMI.

Total interest.

Total repayment.

Pro tip: Try different combinations of tenure and loan amount to find an EMI that fits comfortably within your monthly budget.

The EMI you see in the calculator isn’t a random number. It’s calculated using a standard formula that all banks and NBFCs in India follow.

• Here’s the formula used:

EMI = [P × R × (1 + R)^N] ÷ [(1 + R)^N − 1]

Where:

P = Principal Loan amount

R = Monthly interest rate (annual rate ÷ 12 ÷ 100)

N = Loan tenure (in months)

• Let’s understand this with a simple example

Loan amount: ₹3,00,000

Interest rate: 9.5% per year

Tenure: 12 months

Monthly interest rate becomes: 9.5 ÷ 12 ÷ 100 = 0.00792.

When you apply the formula, your EMI comes to around: ₹26,275 per month.

What does this mean in total?

Total repayment: ₹3,15,300

Total interest paid: ₹15,300

So effectively, you pay about 5.1% of the loan amount as interest over 12 months.

• Gold loans also offer another option called bullet repayment:

You pay only interest every month.

Full principal is paid at the end when you close the loan.

• For the same loan:

Monthly interest: around ₹2,375

Final payment: ₹3,00,000

Total repayment becomes: ₹3,28,500

That’s ₹13,200 more than the EMI option.

Choose EMI if you do not want to pay more interest.

Choose bullet repayment if you want lower monthly outflow and can repay a lump sum later at once.

This is exactly why using a calculator helps - it does not only help you to calculate your gold loan EMI, but also shows the real cost of your loan before you apply.

Know Your Loan Amount in Advance - With a loan calculator you can know how much loan you’re eligible for before stepping into a branch.

Compare Different Tenures Easily - A 6-month and a 12-month loan may look similar, but the total interest paid can be very different. The calculator helps you compare both instantly.

Plan Your EMI as per Your Income - Plan your repayment and EMI to manage your finances. It is suggested to keep total EMIs within 40 - 45% of your monthly income.

See the Real Cost of the Loan - Gold Loan Interest rates alone don’t tell the full story. The calculator shows the total interest payable in rupees, so you clearly understand how much the loan will actually cost you.

Get Instant Loan Estimates - You can quickly check your loan eligibility based on gold weight, purity and current gold rates, no manual calculation needed.

Complete Transparency - You see all key details like loan amount, EMI, interest and total repayment in one place, with no hidden calculations.

Use Anytime, Anywhere - You can check your gold loan eligibility anytime without visiting a branch or speaking to an agent.

• Save Time and Effort - No paperwork or complex maths. You get accurate estimates within seconds