What items are accepted for a gold loan?

Most banks and NBFCs accept gold jewelry and coins. However, coins usually have a weight limit (often 50g per customer). The gold must be between 18K and 24K purity.

How does the LTV ratio impact my loan?

If the LTV is 75%, and your gold is worth ₹1,00,000, you can borrow up to ₹75,000. Lenders may offer lower LTVs (e.g., 60%) to provide you with lower interest rates.

Can I repay my gold loan early?

Yes, most lenders allow prepayment or part-payment. Some may charge a small processing fee, while others offer zero-foreclosure charges.

What happens if gold prices drop significantly?

If gold prices drop, your LTV might exceed 75%. In such cases, the lender may ask you to pay part of the principal or pledge more gold to maintain the ratio.

Gold Loan Calculator

Calculate your gold loan eligibility, EMI, and interest instantly based on the latest RBI guidelines and market prices.

Deposit Details

Gold Weight (Grams)

Gold Purity

Gold Price (per gram) (₹/gram) — 22K

Interest Rate (% p.a.)

Loan Tenure (Months)

Total Gold Value

₹3,43,750

Interest Payable

₹12,741

Monthly Installment

₹22,546

Loan Breakdown

Max Loan Eligibility₹2,57,813

LTV Cap (RBI)75%

Annual Interest Rate9% p.a.

Loan Tenure12 Months

Loan EfficiencyPrincipal vs Interest Ratio

Total₹2,70,553

Principal (95%)₹2,57,813

Interest (5%)₹12,741

Principal Balance

Interest Payable

What is a Gold Loan?

A Gold Loan (or loan against gold) is a secured loan where a borrower pledges their gold ornaments (within the range of 18K to 24K purity) as collateral with a lender. The loan amount provided is typically a percentage of the gold's market value, known as the Loan-to-Value (LTV) ratio.

How it Works