Gold Loan Affordability Calculator
Calculate gold loan eligibility, EMI and total cost
Enter your gold details to see exactly how much loan you are eligible for
This calculator uses RBI-regulated LTV norms, city-specific gold rates, and lender-specific interest rates — giving you a number that matches what a real gold loan officer will offer you at the counter.
Getting a gold loan in India takes about fifteen minutes at any bank or NBFC branch. What takes longer is figuring out whether the loan you are about to take is actually a good deal. Most lenders will tell you the interest rate. Almost none of them will tell you the effective annual cost after processing fees, valuation charges, and whatever repayment scheme they nudge you toward. A bullet repayment scheme at 12% sounds reasonable until you realise the total interest on a six-month loan works out to more than you expected, and if you miss the lump-sum repayment deadline, your gold goes to auction.
This gold loan calculator India is built to close that information gap. Enter your gold weight and purity or its current market value, select your city for an auto-filled 24K rate, choose a lender type and repayment scheme, and the calculator shows your maximum loan eligibility, EMI or bullet payment, total interest, effective annual cost, a lender comparison table, and a gold price sensitivity analysis that tells you exactly when a margin call becomes likely. All in one place, before you walk into any branch.
Why This Gold Loan Calculator Is Different From Every Other Tool Online
Every bank website has a gold loan per gram calculator that takes your weight, purity, and current rate, and shows you one number: the loan amount. That is useful as a starting point. It is not useful for deciding whether to take the loan, which lender to approach, or how to protect yourself if gold prices move after you pledge. Here is what this calculator shows that no other free tool provides.
Lender comparison table built into the results
After calculating your eligibility, a comparison table automatically shows what eight major lenders such as SBI, HDFC, ICICI, Federal Bank, Muthoot, Manappuram, and Bajaj Finance would offer for your specific gold at their current rates and LTV policies. The table shows loan amount, monthly EMI, total interest, and total cost including fees side by side. No other free gold loan EMI calculator in India builds this comparison for you.
Gold price sensitivity and margin call risk table
Gold prices move every day. This calculator shows your loan eligibility and margin call risk across nine price scenarios from 20% below to 20% above today's rate. You can see exactly at what gold price a lender is likely to issue a margin call asking you to repay part of the loan or pledge more gold. No standard gold loan calculator on any lender's website shows this because it is not in their interest for you to see it.
Effective annual cost
A 10% gold loan does not cost 10%. After processing fees, valuation charges, and insurance (if applicable), the effective annual cost is higher. This calculator annualises all charges into one effective rate and colour-codes it as Good (below 11%), Fair (11 to 16%), or High (above 16%). This is the number that tells you whether your gold loan is genuinely cheap or just advertised that way.
Three repayment modes compared with correct formulas
Monthly EMI, bullet repayment (everything at end), and interest-only monthly are all supported with the right formula for each. EMI uses the standard reducing-balance formula. Bullet uses simple interest. Interest-only calculates your monthly charge and the outstanding principal you owe at the end of tenure. Switching between modes instantly shows you how much more or less each option costs so you can choose with full information.
Three ways to input your gold are weight, value, or by item
Enter a single weight and purity if you have a simple holding. Enter a market value if you already know what your gold is worth. Or add individual jewellery items such as necklace, bangle, ring, anklet, coin each with its own weight and karat, and the calculator adds them correctly. No other free gold loan calculator in India offers all three input methods in one tool.
City-specific gold rates auto-filled from ten cities
Gold prices vary slightly city by city due to local taxes and transport costs. This calculator has reference rates for Mumbai, Delhi, Bengaluru, Chennai, Hyderabad, Kolkata, Ahmedabad, Jaipur, Patna, and Ranchi, auto-filled when you select your city. You can override the rate at any time. Always verify the current rate on MCX or your lender's website before pledging since gold prices change daily.
How the Gold Loan Eligibility Calculation Works
The calculation has four steps. Every bank and NBFC in India follows the same methodology for arriving at your maximum loan amount. Understanding it lets you verify any lender's offer before signing and spot if the assessed purity or weight has been undervalued.
Pure Gold (grams) = Gross Weight × (Karat ÷ 24)
- 24K gold: purity factor = 1.0 (999.9 fine gold)
- 22K gold: purity factor = 22 ÷ 24 = 0.9167 (916 hallmark, most Indian jewellery)
- 18K gold: purity factor = 18 ÷ 24 = 0.75 (750 hallmark, studded jewellery)
- 14K gold: purity factor = 14 ÷ 24 = 0.5833
Banks value only the pure gold content, not the making charges or the weight of embedded stones. If you have a 10g ring with a 1g diamond, the lender values only the 9g of gold at its karat purity. Always subtract stone weight before entering the figure. BIS-hallmarked jewellery with a HUID number is accepted at face purity. Unhallmarked pieces may be assessed conservatively at 18K regardless of their stated karat.
Gold Market Value = Pure Gold Grams × Current 24K Rate (₹ per gram)
- The rate used is the current 24K gold price, typically referencing the IBJA (India Bullion and Jewellers Association) daily rate or the previous day's MCX closing price
- Making charges, purchase price, and hallmarking costs are completely ignored lenders value gold at its melt value only
- For 50g of 22K gold at ₹9,450 per gram (24K): Pure gold = 45.83g. Value = 45.83 × 9,450 = ₹4,33,125
Maximum Loan = Gold Market Value × LTV Percentage
- Standard LTV: RBI caps gold loan LTV at 75% for banks and NBFCs for standard lending
- Small borrower concession (2026 update): RBI allows up to 85% LTV for loans up to ₹2.5 lakh, aimed at improving credit access for small borrowers
- Example: ₹4,33,125 × 75% = ₹3,24,844 maximum loan eligible
- Co-operative banks typically offer 70% LTV, which reduces the loan amount for the same gold
LTV is applied to the gold's current market value, not your purchase price. If you bought a necklace for ₹1.5 lakh three years ago and gold prices have since risen, your loan eligibility is based on today's market value. The reverse is also true: if gold prices fall after pledging, the LTV ratio on your outstanding loan increases and may trigger a margin call from the lender.
EMI Scheme: EMI = [P × r × (1+r)^n] ÷ [(1+r)^n − 1]
Bullet Scheme: Total Repayment = P + (P × Annual Rate × Tenure in Years)
Interest Only: Monthly Charge = P × (Annual Rate ÷ 12 ÷ 100) + Principal at End
- P = Loan amount (gold value × LTV)
- r = Monthly interest rate = Annual rate ÷ 12 ÷ 100
- n = Tenure in months
Per RBI's 2026 Gold Loan Framework, bullet repayment schemes for consumption loans are capped at 12-month tenure. For productive purposes (agriculture, business), longer tenures may be allowed. Always confirm the maximum tenure for your loan purpose with the lender before selecting bullet repayment for more than 12 months.
Real Examples: Exact Calculator Output for Three Common Scenarios
These numbers come directly from this calculator. Enter the same inputs above and the results will match exactly.
Weight: 50g | Purity: 22K | Rate: ₹9,450/g | LTV: 75% | Tenure: 12 months | Scheme: EMI
- Pure gold content: 45.83 grams (22 ÷ 24 × 50g)
- Gold market value: ₹4,33,125
- Maximum loan (75% LTV): ₹3,24,844
- Monthly EMI at 9.9%: ₹28,544 per month
- Total interest over 12 months: ₹17,682
- Processing fee (0.5%): ₹1,624
- Total repayment including all charges: ₹3,44,400
At SBI's typical rate, the effective annual cost on this loan is approximately 6% after accounting for the short tenure. This makes it significantly cheaper than a personal loan at 11 to 15%. The 12-month EMI scheme forces regular repayment, which suits salaried borrowers with predictable monthly income. If you cannot commit to ₹28,544 per month, the interest-only scheme drops the monthly outgo to ₹2,842 but requires you to have the full ₹3,24,844 principal available on day one of month 13.
Weight: 30g | Purity: 18K | Rate: ₹9,450/g | LTV: 75% | Tenure: 6 months | Scheme: Bullet
- Pure gold content: 22.50 grams (18 ÷ 24 × 30g)
- Gold market value: ₹2,12,625
- Maximum loan (75% LTV): ₹1,59,469
- Interest for 6 months at 12%: ₹9,568
- Total bullet repayment at end of 6 months: ₹1,69,037
- Nothing payable monthly (bullet scheme)
Bullet repayment suits business owners or agricultural borrowers who expect cash inflow at a specific future date after a harvest, after a client payment, or after an asset sale. The zero monthly payment is convenient but creates risk. If the repayment date arrives and you do not have ₹1,69,037 available, the lender has the legal right to auction your pledged gold. Muthoot and Manappuram process this faster than most banks. Set a calendar reminder 30 days before the maturity date to arrange funds.
Weight: 100g | Purity: 22K | Rate: ₹9,450/g | LTV: 75% | Tenure: 24 months | Scheme: EMI
- Pure gold content: 91.67 grams
- Gold market value: ₹8,66,250
- Maximum loan (75% LTV): ₹6,49,687
- Monthly EMI at 10.5%: ₹30,130 per month
- Total interest over 24 months: ₹73,431
- Total repayment: ₹7,23,118
For a larger gold holding over a longer tenure, the total interest increases significantly. ₹73,431 on a ₹6.5 lakh loan over 2 years is a real cost. Contrast this with keeping money in an FD: at 7% for 24 months, ₹6.5 lakh earns approximately ₹94,000 in interest. A gold loan against the same amount costs ₹73,431 in interest. If you own the gold anyway and need the liquidity without selling, the math is favourable compared to breaking a long-term investment. Use our FD calculator to model the exact comparison for your holding size and tenure.
How to Use This Gold Loan Eligibility Calculator: Step by Step
Step 1: Choose your gold input method
Select By Weight if you know the gross weight and purity of your gold (most common). Select By Market Value if you have already had your gold appraised or know its current worth. Select By Jewellery Items to add individual pieces which are necklace, bangle, ring and each with its own weight and karat. The third method is the most accurate for mixed holdings where different pieces have different purities.
Step 2: Enter weight, purity, and the 24K gold rate for your city
For weight, enter the net gold weight excluding stones. If your 15g necklace has a 2g stone, enter 13g. For purity, most Indian jewellery is 22K (916 hallmark). Modern studded pieces are often 18K (750). Coins and bars are typically 24K. Select your city to auto-fill the reference 24K rate, then edit it to the rate your lender uses if it differs. The MCX gold rate or the IBJA daily rate are the most accurate references and are published every morning. Always verify before pledging since rates change daily and even small differences affect your loan amount significantly.
Step 3: Select lender type and adjust the LTV slider
Bank, NBFC, or co-operative bank selections auto-fill a typical interest rate for that lender type. The LTV slider defaults to 75% which is the RBI-regulated maximum. You can lower it to model a conservative scenario where the lender applies 65 or 70% LTV. Some co-operative banks offer only 70% LTV. If your loan amount is under ₹2.5 lakh, you may qualify for 85% LTV under the RBI's small borrower concession introduced in 2026 which confirm this with your specific lender before relying on it.
Step 4: Choose your repayment scheme and tenure
Monthly EMI is the standard choice and minimises interest cost over the tenure. Bullet repayment suits those with a known lump-sum inflow at a future date but as per RBI 2026 rules, bullet schemes for non-agricultural borrowers are now capped at 12 months. Interest-only means you pay only the monthly interest charge and repay the principal at the end of tenure. This feels affordable monthly but creates a large obligation at maturity. Run the calculator in all three modes for your loan amount to see the exact cost difference before deciding.
Step 5: Review the lender comparison table and sensitivity analysis
After the main results, scroll to the lender comparison table to see what Federal Bank, Bajaj Finance, SBI, and others would charge for your specific gold. The cheapest lender for your exact combination of gold weight, tenure, and repayment scheme may not be the one your jeweller recommends. Then review the gold price sensitivity table which shows at what price levels a margin call becomes likely and helps you decide whether the current gold price environment makes now a good time to pledge.
Gold Loan Per Gram: What You Get From Each Lender in 2026
The table below shows the maximum loan per gram of 22K gold at 75% LTV at current rates across major lenders. All figures use ₹9,450 per gram for 24K gold (May 2026 reference rate). Your actual per-gram loan will vary with live rates on the day of pledging.
| Lender | Type | Rate (p.a.) | Loan per gram (22K, 75%) | EMI per ₹1L (12 mo) | Processing Fee |
|---|---|---|---|---|---|
| Federal Bank | Bank | 8.50% | ₹6,488/g | ₹8,729/mo | 0.5% + GST |
| SBI Gold Loan | PSU Bank | 9.90% | ₹6,488/g | ₹8,790/mo | 0.5% + GST |
| Bajaj Finance | NBFC | 9.50% | ₹6,488/g | ₹8,764/mo | 0.5% + GST |
| ICICI Bank | Bank | 10.00% | ₹6,488/g | ₹8,794/mo | 1.0% + GST |
| HDFC Bank | Bank | 10.50% | ₹6,488/g | ₹8,826/mo | 1.0% + GST |
| Muthoot Finance | NBFC | 12.00% | ₹6,488/g | ₹8,889/mo | 0.25% + GST |
| Manappuram | NBFC | 12.00% | ₹6,488/g | ₹8,889/mo | Nil (varies by scheme) |
The per-gram loan amount is the same across all lenders at the same LTV because it is determined by gold price and purity, not the lender. What differs is the interest rate and fees, which change the effective cost significantly. On a ₹3 lakh gold loan for 12 months, the difference between Federal Bank at 8.5% and Muthoot at 12% is approximately ₹6,350 in total interest. That gap is worth making two phone calls before deciding where to pledge. Rates shown are for reference and are revised by lenders periodically. Always confirm the current rate at your chosen lender before visiting. The official RBI-registered lender list is available on rbi.org.in.
EMI vs Bullet vs Interest-Only: Which Repayment Scheme Costs Less?
The repayment scheme you choose has a larger impact on total cost than a 0.5% difference in interest rate in many cases. The table below compares all three schemes on the same ₹3,24,844 loan (50g of 22K gold at 75% LTV) at 10.5% for 12 months.
Monthly payment: ₹28,635. Total interest: ₹18,775. Total repayment: ₹3,43,619. Each month you reduce the outstanding principal, so interest is calculated on a declining balance. This is the most mathematically efficient scheme.
Best suited for: salaried borrowers with regular monthly income who can commit to fixed monthly payments. The loan closes cleanly at the end of tenure with no lump-sum obligation.
Limitation: the highest monthly cash outflow of the three schemes. If your income is irregular or you expect a lump-sum at a specific future date, EMI may not match your cash flow pattern.
Monthly payment: nil. Single payment at end: ₹3,59,157 (principal ₹3,24,844 + interest ₹34,313 for 12 months at simple interest). Simple interest is used, not reducing balance, so total interest is higher than EMI scheme.
Best suited for: business owners expecting a receivable, farmers after harvest, anyone with a known future cash inflow. Zero monthly obligation keeps current cash flow completely free.
Limitation: the highest total interest of all three schemes because simple interest applies to the full principal throughout. Missing the bullet date means immediate auction risk. Per RBI 2026 rules, capped at 12 months for consumption loans.
Interest-only repayment sits between these two. You pay ₹2,842 per month (just the interest component on ₹3,24,844 at 10.5%) and repay the full principal of ₹3,24,844 at the end of 12 months. Monthly outflow is low, but the terminal obligation is larger than bullet repayment because the interest in bullet accrues to a fixed sum whereas in interest-only, you have already paid the interest monthly and still owe the full principal. Choose interest-only only if you are confident in your ability to produce the principal amount on the maturity date. For understanding how to build a repayment corpus while the loan runs, use our FD calculator or SIP calculator to model a parallel savings plan.
Gold Price Sensitivity: When Does a Margin Call Become Likely?
Gold prices in India hit record highs in 2026, crossing ₹13,400 per gram at the 24K level on MCX. When gold prices are rising, LTV ratios become more comfortable and lenders sometimes offer better terms. The risk runs in the opposite direction: if gold prices fall after you pledge, the loan-to-value ratio on your outstanding loan increases beyond 75%, and lenders can legally demand additional gold or partial repayment to bring it back within limits.
The table below shows what happens to your loan eligibility and margin call risk for the 50g 22K gold example at different price levels, using this calculator's exact output.
| Gold Rate (24K, ₹/g) | Change from Today | Gold Value (50g 22K) | Max Loan (75%) | Margin Call Risk |
|---|---|---|---|---|
| ₹7,560 | minus 20% | ₹3,46,500 | ₹2,59,875 | High ( margin call very likely ) |
| ₹8,033 | minus 15% | ₹3,68,156 | ₹2,76,117 | High ( lender may act ) |
| ₹8,505 | minus 10% | ₹3,89,812 | ₹2,92,359 | Watch closely |
| ₹8,978 | minus 5% | ₹4,11,469 | ₹3,08,602 | Watch closely |
| ₹9,450 | Today's rate | ₹4,33,125 | ₹3,24,844 | No risk |
| ₹9,923 | plus 5% | ₹4,54,781 | ₹3,41,086 | No risk |
| ₹10,395 | plus 10% | ₹4,76,437 | ₹3,57,328 | No risk |
If you take a ₹3,24,844 loan today against 50g of 22K gold and gold prices fall 15%, your gold is now worth only ₹3,68,156. The maximum loan supportable is ₹2,76,117, which is ₹48,727 less than your outstanding loan. Your lender will issue a margin call asking you to either repay ₹48,727 or pledge additional gold. If you cannot respond, they can proceed to auction. This is not a theoretical risk: Indian gold prices have seen 15 to 20% corrections within 12-month periods multiple times in the past decade. Check current gold rates on MCX India before pledging and again during the loan tenure.
Frequently Asked Questions
Disclaimer This calculator is for financial planning and educational purposes only. Fintool Baba is not a lender, loan aggregator, or financial advisor. Results are estimates and do not constitute a loan offer or commitment. Always read your loan agreement carefully before signing. For general EMI calculations on any loan, use our EMI calculator. To check your full loan eligibility across products, use our loan eligibility checker. To understand your post-loan monthly cash flow, use our expense planner. Fintool Baba is not responsible for financial decisions made using this tool.