Gold Loan EMI Calculator

Calculate gold loan monthly EMI, interest charges, and complete repayment schedule instantly.

Loan Amount

$10K$5M

Annual Interest Rate

6%24%

Loan Tenure

1 Mo36 Mo

Monthly EMI

$17,444

Total Interest Payable

$9,327

Total Amount Payable

$209,327

Principal (96%)Interest (4%)

Principal vs Interest

Yearly Breakdown

Amortization Schedule

Year	EMI	Principal	Interest	Balance
Year 1	$209,330	$200,000	$9,330	$0

About Gold Loans

Gold loans are secured loans where you pledge gold jewelry, ornaments, or coins as collateral to receive instant funds. They offer among the lowest rates in secured lending (7–11% at banks; 12–24% at gold loan NBFCs), require minimal documentation, have no income or CIBIL score requirement, and can be disbursed within 15–30 minutes. The loan amount is calculated as: Gold Weight (grams) × Purity % × Gold Price/gram × LTV% (max 75% as per RBI). The pledged gold is stored in secure, insured vaults and returned intact upon loan closure.

EMI Formula

EMI = P × r × (1 + r)ⁿ / ((1 + r)ⁿ − 1)

Where P = Principal, r = Monthly Interest Rate, n = Number of Months

Bank vs NBFC for gold loan — which is better?

Banks (SBI, HDFC, ICICI, Axis) charge 7–10% p.a. but take 30–60 minutes for processing. Gold loan NBFCs (Muthoot Finance, Manappuram, IIFL) disburse in 15 minutes but charge 12–24%. Choose banks for tenures above 6 months; NBFCs for urgent, short-term needs (1–3 months). Both are RBI-regulated and your gold is safe.

How is gold loan amount calculated?

Gold Loan = (Net Weight in grams) × (Purity %) × (Current Gold Rate per gram) × LTV%. For example: 50g of 22-carat gold at ₹6,000/g with 75% LTV = 50 × (22/24) × ₹6,000 × 75% = ₹2.06 lakh. Use this calculation to estimate your loan eligibility, then use our calculator for EMI.

What if I can't repay the gold loan on time?

Contact the lender immediately for renewal/extension — most lenders allow renewing a gold loan by paying just the interest. If you completely default and don't respond, the lender will send an auction notice. After the notice period (15–30 days), gold can be auctioned. Act proactively — renewal is always available.

Frequently Asked Questions

What is the maximum LTV for gold loans as per RBI?

RBI has set the maximum LTV (Loan-to-Value) at 75% of the gold's appraised value for all banks and NBFCs. This means for ₹1L worth of gold, the maximum loan is ₹75,000. Some lenders offer lower LTV (65–70%) while offering lower interest rates.

What gold purity is accepted for gold loans?

Most lenders accept 18–24 carat gold jewelry and ornaments. 22-carat is the most common. Gold coins issued by banks (up to 50g per customer) are accepted. Foreign gold coins, gold bars, and unregistered coin forms are generally not accepted.

Do I need a CIBIL score for a gold loan?

No. Gold loans are fully secured by the pledged gold, so lenders don't check CIBIL scores. Even individuals with no credit history, low scores, or past defaults can get gold loans easily. This makes gold loans ideal for emergency credit.

What are the repayment options for gold loans?

Gold loans offer flexible repayment: (1) Regular monthly EMI (principal + interest), (2) Interest-only monthly payments with principal repaid at maturity (bullet), (3) Lump sum repayment of principal + interest at maturity, (4) Overdraft facility where you pay interest only on amount withdrawn. Choose based on your cash flow pattern.

Is my gold physically safe with the lender?

Yes. RBI mandates that all gold loan lenders store pledged gold in insured, audited, dual-control vaults. The gold is sealed in your presence, tagged uniquely, and the net weight is recorded. It's returned in exactly the same condition. Both banks and regulated NBFCs follow these standards strictly.