Gold Valuation & RBI 75% LTV Compliance

Gold Loan Calculator

Estimate your maximum eligible gold loan, monthly interest, and repayment schemes (Monthly Interest, EMI, or Bullet). Check Karat valuation, RBI 75% LTV safety margin, and price drop risk.

Popular Pledges:

🪙Gold & Loan Parameters

Set weight, karat purity, market gold price and loan terms

✨ Step 1: Gold Weight & Purity ValuationGold Value: ₹4,06,700

Gold Purity (Karat / Hallmark)91.6% Pure Gold (22K 916)

Gross Gold WeightIn GramsNet Gold: 50.0 g

grams

5g25g50g100g250g

Market 24K Gold Rate₹/gram22K Rate: ₹8,134 / g

₹

/ gram (24K)

💰 Step 2: Loan Amount & LTV RatioMax RBI 75% Limit: ₹3,05,025

Selected Loan AmountThree Lakh Five Thousand Rupees

₹

Loan-to-Value (LTV) Ratio75% (RBI Max Standard)

50% (Conservative)65% (Safe)75% (RBI Cap)85% (Pawn / NBFC)

Annual Interest Rate= ₹0.79 / ₹100 vaddi

% p.a.

Loan Tenure1.0 Year

Months

⚙️ Processing Fee & Appraiser Charges (Optional)▼

Processing Fee (%)

Gold Appraiser / Valuation Fee (₹)

🪙 Gold Loan SummaryMonthly Interest Scheme

Monthly Interest Payment

₹2,415

Pay ₹2,415/mo interest. Principal ₹3,05,025 payable at maturity (Month 12).

Total Gold Pledged Value:₹4,06,700

Approved Loan Principal:₹3,05,025

Actual LTV Ratio:75.0%

Total Interest Payable:₹28,977

Processing & Appraiser Fees:₹1,775

Total Repayment Amount:₹3,35,777

Net In-Hand Disbursal:₹3,03,250

Principal: 75%Interest: 7%Gold Cushion: 25%

🛡️ LTV Risk & Gold Cushion

Optimum RBI Standard

Your loan is 75% of your pledged gold valuation. You have an equity cushion of ₹1,01,675 protecting your jewelry against market drops.

Equity Cushion:25.0% Cushion

Gold Value per Gram Loaned:₹6,101 / g

📉 Price Drop & Margin Call Simulator

Stress Test

See what happens if international gold rates drop during your loan tenure:

Simulated Gold Price Drop:10% Drop

0%10%20%30%

⚠️ LTV Increases to 83.3%

If gold price drops by 10%, new valuation is ₹3,66,030. NBFCs may issue a margin top-up reminder if LTV exceeds 85%.

Scheme Comparison

Compare All 3 Gold Loan Repayment Schemes Side-by-Side

Evaluate which gold loan structure matches your cash flow and minimizes total interest cost.

1. Monthly Interest OnlyMost Popular

₹2,415 / mo

• Monthly Interest: ₹2,415

• Total Interest: ₹28,977

• Principal Paid: At End (Month 12)

• Best For: Business working capital & lowest monthly outflow.

2. Monthly EMI (P + I)Lowest Interest

₹26,723 / mo

• Monthly EMI: ₹26,723

• Total Interest: ₹15,655

• Interest Saved: ₹13,322

• Best For: Salaried individuals wanting zero lump-sum debt at end.

3. Bullet at MaturityZero Monthly

₹0 / month

• Monthly Outgo: ₹0 / month

• Total Repayment at End: ₹3,34,002

• Total Interest: ₹28,977

• Best For: Farmers or traders expecting lump-sum cash in few months.

💰 Interest Savings Calculator

Gold Loan vs Unsecured Personal Loan

Pledging physical gold turns your loan into a secured asset. Banks offer lower interest rates, zero income proof restrictions, and instantaneous disbursal compared to high-interest personal loans.

Gold Loan Interest (@ 9.5%):₹28,977

Personal Loan Interest (@ 15.5%):₹47,279

Estimated Savings with Gold:₹18,302

📅Month-by-Month Amortization & Repayment Schedule

Exact monthly breakdown of interest, principal reduction, and remaining loan balance

Month	Opening Balance	Interest Due	Principal Repaid	Total Monthly Outgo	Closing Balance

Frequently Asked Questions (FAQs)

Everything you need to know about Gold Loans, LTV limits, purity testing, and RBI guidelines

How much loan will I get for 1 gram gold?▼

The loan amount you can get per gram depends on your gold purity (22K, 24K, or 18K), the prevailing 30-day average market gold price, and the RBI's mandatory 75% Loan-to-Value (LTV) cap.

For example, if the current 22K (916) gold market rate is ₹6,800 per gram, at the maximum 75% LTV, banks and NBFCs (such as SBI, Muthoot, or Manappuram) can offer up to ₹5,100 per gram. Note that non-gold items such as stones, pearls, and wax are deducted before valuation.

How do I calculate a gold loan?▼

Calculating a gold loan involves four straightforward steps:

Net Weight: Net Weight = Gross Ornament Weight − Stone/Wax/Enamel Weight.
Appraised Gold Value: Net Weight × Karat Purity Factor (e.g. 22/24 for 22K) × Today's Gold Price per Gram.
Eligible Loan Amount: Appraised Gold Value × Lender LTV (maximum 75% as per RBI).
Interest Outgo / EMI: Based on the annual interest rate (e.g., 9% to 14% p.a.) and selected tenure, calculate the monthly interest or reducing balance EMI.

How much EMI for 2 lakh gold loan?▼

For a ₹2,00,000 (2 Lakh) gold loan at an interest rate of 9.5% p.a., your repayment varies by scheme and tenure:

1-Year Regular EMI (12 Months): EMI is approximately ₹17,537/month (Total interest: ₹10,444).
2-Year Regular EMI (24 Months): EMI is approximately ₹9,183/month (Total interest: ₹20,388).
3-Year Regular EMI (36 Months): EMI is approximately ₹6,406/month (Total interest: ₹30,627).
Monthly Interest Scheme: Pay only ₹1,583/month in interest, repaying the ₹2 Lakh principal at maturity.

How much EMI for 10 lakh gold loan?▼

For a ₹10,00,000 (10 Lakh) gold loan at a competitive 9.5% p.a. interest rate:

1-Year Regular EMI (12 Months): EMI is approximately ₹87,684/month (Total interest: ₹52,208).
2-Year Regular EMI (24 Months): EMI is approximately ₹45,914/month (Total interest: ₹1,01,940).
3-Year Regular EMI (36 Months): EMI is approximately ₹32,033/month (Total interest: ₹1,53,188).
Monthly Interest Scheme: Pay only ₹7,917/month in interest throughout the loan term, with ₹10 Lakh principal repayable at closure.

How to use an online gold loan calculator?▼

Using our online gold loan calculator takes less than 30 seconds:

Select Gold Purity: Choose 24K, 22K (916 Hallmark), 20K, or 18K jewelry purity.
Enter Ornament Weight: Input the gross weight in grams and select stone/enamel deductions.
Check Market Gold Rate: Review or update today's live per-gram gold price.
Configure Loan & Tenure: Set your required loan amount (up to 75% LTV), interest rate, and duration.
Compare Schemes: Toggle between Monthly Interest, Monthly EMI, and Bullet Repayment to view instant amortization schedules and payment breakdowns.

What is the RBI 75% LTV (Loan-to-Value) rule for Gold Loans?▼

The Reserve Bank of India (RBI) mandates that all scheduled commercial banks and Non-Banking Financial Companies (NBFCs) can lend a maximum of 75% of the total appraised value of pledged gold ornaments.

This 25% safety cushion protects both the lender and borrower from sudden market price fluctuations and default liquidation risks.

What is the difference between Monthly Interest and Bullet Repayment?▼

Monthly Interest Scheme: You pay only the accrued interest every month (e.g. ₹1,500/month), keeping debt from accumulating. At the end of tenure, you pay back the principal in one lump sum.

Bullet Repayment Scheme: You pay ₹0 per month during the loan tenure. The entire accumulated interest plus principal is paid together at the end of the loan period (up to 12 months as per RBI rules).

How is gold purity and net weight calculated by banks?▼

Certified gold appraisers examine the ornament for BIS Hallmark stamps, test metal density using touchstone/nitric acid or XRF spectrometer machines, and strictly deduct the weight of all embedded stones, gems, pearls, and wax to arrive at the true Net Gold Weight.

What happens if international gold prices drop during my loan?▼

If gold prices drop sharply and the outstanding loan exceeds 85% of the new market valuation, lenders may issue a Margin Call asking the borrower to either repay part of the principal or pledge additional gold ornaments.

Gold Loan Knowledge Base & Valuation Guide

Understanding Gold Loans, Karat Valuation & RBI LTV Norms

A complete guide on how to calculate gold loan eligibility per gram, estimate monthly interest outgo, compare bank EMI vs bullet schemes, and protect your pledged jewelry.

✨

What is a Gold Loan Calculator and Who Is It For?

A gold loan calculator is an essential online financial planning tool that estimates your maximum loan eligibility, per-gram gold valuation, and monthly repayment obligations based on current market bullion prices. Whether you are a homeowner raising immediate liquidity for personal emergencies, a business owner managing working capital, or a farmer planning seasonal agricultural investments, this gold loan calculator online helps you evaluate multiple loan schemes—such as monthly interest only, regular reducing EMI, or bullet repayment—before visiting a bank or NBFC branch. By entering your gold weight and purity, you can easily discover your maximum disbursal amount while adhering to safe lending margins.

📋

How to Use This Gold Loan Calculator

Follow these five simple steps to calculate your gold loan eligibility and monthly repayment in seconds:

Select Gold Purity (Karat)

Choose the purity of your ornaments: 24 Karat (99.9% pure bullion), 22 Karat (916 Hallmark) for standard Indian jewelry, 20 Karat (83.3%), or 18 Karat (750 Hallmark) for lightweight stone-studded ornaments.

Enter Gold Weight (Grams)

Input the gross weight of your ornaments in grams. You can also select a stone/wax deduction percentage (e.g. 5% to 15%) to find the exact net gold weight considered by bank appraisers.

Check Current Market Gold Rate

Enter today's 24K gold rate per gram. Because market gold rates fluctuate daily across Indian bullion centers, entering the current daily rate ensures your gold loan calculator per gram valuation reflects live market reality.

Set Interest Rate & Tenure

Enter the annual gold loan interest rate offered by your bank or NBFC (typically 8.5% to 16% p.a.) and select your preferred loan duration from 3 months up to 36 months.

💡Pro-Tip: Use the top scheme switcher to instantly switch between Monthly Interest Only, Monthly EMI, and Bullet Repayment modes to see how your monthly cash outflow changes.

🧮

How Gold Loan Amount is Calculated: LTV Rules, Purity & Interest

Understanding the financial mechanics of gold valuation and Reserve Bank of India (RBI) guidelines

1. Understanding the RBI Loan-to-Value (LTV) Ratio

In banking terms, Loan-to-Value (LTV) represents the maximum percentage of your pledged gold's market valuation that a lender can lend you as cash. The Reserve Bank of India (RBI) mandates a statutory regulatory cap of 75% LTV (or up to 85% under specific agricultural or NBFC guidelines) for gold loans.

For example, if your pledged jewelry is valued by the appraiser at ₹1,00,000, a 75% LTV ceiling means the bank can disburse a maximum principal loan of ₹75,000. The remaining 25% serves as an essential equity safety cushion. This safety margin protects both you and the bank against daily fluctuations in precious metal prices, ensuring your jewelry is not immediately exposed to auction liquidation if global bullion prices experience a temporary dip.

2. How Gold Purity (18K, 22K, 24K) Affects per-Gram Valuation

The market price of gold is always quoted for 24 Karat (99.9% fine pure gold). However, traditional Indian jewelry is crafted in 22 Karat (91.6% pure gold alloyed with copper or silver for structural durability) or 18 Karat (75.0% pure gold). Bank appraisers calculate the eligible per-gram rate using the following exact purity formula:

Gold Valuation Formula

Effective Gram Rate = 24K Gold Market Price × (Karat Purity ÷ 24)

Total Gold Value = Net Weight (in grams) × Effective Gram Rate

Gold Purity Type	BIS Fineness Stamp	Pure Gold Content	Valuation Formula Basis
24 Karat (Bullion / Coins)	999	99.9% Pure Gold	100% of 24K Market Price
22 Karat (Standard Jewelry)	916 Hallmark	91.6% Pure Gold	91.6% of 24K Market Price
20 Karat (Antique Jewelry)	833	83.3% Pure Gold	83.3% of 24K Market Price
18 Karat (Studded / Designer)	750 Hallmark	75.0% Pure Gold	75.0% of 24K Market Price

3. How Interest is Computed: Flat Rate vs Reducing Balance

When taking a gold loan, the total cost depends heavily on the interest computation method. Our gold loan interest calculator supports all standard institutional repayment structures:

Monthly Interest Scheme (Bullet Principal): You pay only the simple interest every month on the outstanding principal. At the end of the loan tenure (e.g. month 12), you repay the full principal in a single lump sum to release your gold. This is the most widely chosen scheme for businesses and self-employed individuals seeking the lowest monthly cash outflow.
Monthly EMI Scheme (Reducing Balance): Using our gold loan emi calculator mode, you pay a fixed equated monthly installment comprising both principal repayment and interest. Because the outstanding principal reduces each month, you pay significantly less total interest over time compared to flat-rate schemes.
Bullet Repayment Scheme: You make zero monthly payments during the loan term. The entire principal plus cumulative interest is paid in one final installment at maturity.

💡

Worked Example: Pledging 10 Grams of 22K (916) Gold

A practical step-by-step mathematical example using realistic market numbers in India

Suppose you pledge a 10-gram 22K gold chain with no embedded stones for a 12-month tenure at a bank interest rate of 9.50% p.a., assuming a prevailing 24K market gold price of ₹8,880 per gram:

Step 1: 22K per-Gram Valuation

₹8,880 × 91.6% = ₹8,134 / g

Step 2: Total Gold Asset Value

10 grams × ₹8,134 = ₹81,340

Step 3: Max Loan @ 75% RBI LTV

₹81,340 × 0.75 = ₹61,005

Step 4: Your 25% Equity Cushion

₹81,340 − ₹61,005 = ₹20,335

Repayment Comparison for ₹61,005 Loan Amount (12 Months @ 9.5% p.a.):

Monthly Interest Scheme

₹483 / month

Total Interest: ₹5,795
Principal Due: ₹61,005 at Month 12
Total Outgo: ₹66,800

Monthly EMI Scheme

₹5,348 / month

Total Interest: ₹3,171
Interest Saved: ₹2,624
Total Outgo: ₹64,176

Bullet Scheme

₹0 / month

Total Interest: ₹5,795
Pay at Maturity: ₹66,800
Total Outgo: ₹66,800

⚖️

Factors That Affect Your Gold Loan Amount and Interest Rates

Key parameters that determine your final loan sanction value and borrowing cost

🏷️ 1. Gold Purity and BIS Hallmark Certification

Higher purity translates directly into higher loan eligibility per gram. 24K and 22K hallmark jewelry (with valid 6-digit HUID BIS stamps) receive instantaneous appraisal approval and maximum per-gram valuation compared to non-hallmarked or lower-karat ornaments.

📈 2. Prevailing Daily Market Gold Rates (IBJA Index)

Gold prices in India update twice daily on trading days based on the India Bullion and Jewellers Association (IBJA) rates. Because banks calculate loan eligibility based on the 30-day average or daily spot rate, higher prevailing gold prices immediately increase your eligible borrowing limit.

🏛️ 3. RBI Loan-to-Value (LTV) Norms & Bank Policy

While the RBI caps maximum LTV at 75%, individual public sector banks (like SBI, Canara Bank, and Bank of Baroda) and private lenders (such as HDFC, ICICI, Muthoot Finance, and Manappuram) may operate internal LTV slabs (between 65% and 75%) based on the borrower's risk profile and chosen loan tenure.

💎 4. Net Gold Weight (Strict Stone and Wax Deductions)

Financial institutions strictly evaluate only the precious metal component of ornaments. The weight of all non-gold elements—including precious gemstones, diamonds, cubic zirconia, pearls, threading, and interior wax filling—is deducted from the gross weight to determine the net eligible weight.

📜 5. Lender Category and Repayment Scheme Selection

Public sector banks typically offer lower gold loan interest rates (ranging from 8.50% to 10.50% p.a.) but may require standard branch KYC verification. NBFCs offer faster doorstep disbursals (in 15–30 minutes) but may charge higher annual interest rates (11% to 18% p.a.).

⚠️Important Notice on Daily Gold Price Fluctuations (YMYL Advisory)

Gold bullion market prices update daily in India based on international spot markets, currency exchange rates, import duties, and local city jewellers' associations. The estimates generated by this gold loan calculator are for financial planning and educational reference. We strongly encourage borrowers to confirm today's live 24K and 22K per-gram rates with their chosen bank or certified appraiser before executing a loan agreement.

Explore Tools

Explore Related Loan & Interest Calculators

Calculate informal interest, compare bank EMIs, or plan agricultural and vehicle loan installments.

🚗