What is Gold Loan?
The Gold Loan Calculator estimates how much loan you can get against your gold jewelry, the monthly EMI, and total interest. Gold loans are one of the fastest and cheapest secured loans in India — approval in 30 minutes, rates from 7-12% (vs 12-18% for personal loans).
Gold loan providers in India: SBI (7.5%), Muthoot Finance (12%), Manappuram (12%), HDFC (10%), ICICI (10%), Canara Bank (7.35%). Banks offer lower rates but stricter processes; NBFCs like Muthoot offer instant disbursement.
LTV (Loan-to-Value): RBI allows up to 75% LTV for gold loans. For 20 grams of 22K gold at ₹7,500/gram: gold value = ₹1,37,400, max loan at 75% LTV = ₹1,03,050.
Gold loans are ideal for: emergency cash needs, short-term business requirements, avoiding selling gold during emergencies, and agricultural needs (agri gold loans have even lower rates).
Formula
Gold Value = Weight × Rate per gram × Purity Factor Purity: 24K = 0.999, 22K = 0.916, 18K = 0.75
Max Loan = Gold Value × LTV% EMI = standard EMI formula: P × r × (1+r)^n / ((1+r)^n − 1)
Example — 20g of 22K gold at ₹7,500/gram: Gold value = 20 × 7,500 × 0.916 = ₹1,37,400 Loan at 75% LTV = ₹1,03,050 EMI at 9% for 12 months = ₹9,021 Total interest = ₹5,202
Gold loan rates comparison: SBI: 7.5% | Canara Bank: 7.35% | HDFC: 10% Muthoot: 12% | Manappuram: 12% | ICICI: 10%
How to use this Gold Loan Calculator?
1. Enter weight of gold in grams. 2. Select purity (22K is most common for jewelry in India). 3. Enter current gold rate per gram (check today's rate). 4. Set LTV — most lenders offer 75% (RBI max). 5. Enter interest rate and tenure. 6. See loan amount, EMI, and total interest.