Gold Loan Calculator
How much you can borrow against your gold, and what it costs
Your Gold Loan
- Principal₹4,39,680(91%)
- Interest₹41,770(9%)
- 1Enter weight and purityNet gold weight in grams
- 2Add today's gold rateAnd the lender's interest rate
- 3See your loan amountPlus EMI or interest
How is the gold loan amount worked out?
The lender values only the pure gold in your jewellery and lends a percentage of it, called the loan-to-value (LTV) ratio.
Gold value = weight × purity × 24K rate per gram
Loan = up to 85% (loans to ₹2.5 lakh), 80% (to ₹5 lakh), 75% (above)
RBI's loan-to-value limits
Under RBI's directions on lending against gold, in full effect from 1 April 2026, consumption loans can go up to 85% of the gold's value when the loan (with interest) is up to ₹2.5 lakh, 80% up to ₹5 lakh and 75% above that. Lenders can offer less.
Bullet vs EMI repayment
With a bullet loan you pay nothing until the end, then repay principal and interest together, which is handy for short needs. EMIs reduce the balance every month, so you pay slightly less interest overall.
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Frequently asked questions
Do stones and making charges count?
No. Lenders value only the net gold weight at its purity. Stones, wax and making charges are left out, so the loan is usually lower than the jewellery's shop price.
How much gold can I pledge?
RBI caps it at 1 kg of gold jewellery and 50 grams of gold coins per borrower. Gold bars aren't accepted.
Is my credit score checked?
For small gold loans many lenders skip a detailed check because the gold is security. Repaying on time still builds your credit history.
These results are estimates for planning only, not financial, investment or tax advice. Rates and rules change, and your bank, fund house or employer may calculate slightly differently. Check with them or a qualified adviser before you decide.
Sources
- RBI: fair practices code and key facts statement for loans
- RBI: lending against gold and silver collateral directions, 2025
Last reviewed: October 2026