What Is a Gold Loan Calculator?
A Gold Loan Calculator is an online tool that computes the loan amount you can get by pledging gold jewellery, along with the monthly EMI or interest payment based on gold weight, purity, interest rate, and tenure.
Gold loans are the fastest-growing secured credit product in India. Per RBI data, outstanding gold loans crossed Rs 10 lakh crore in FY2025. The key advantage is speed: you can get funds within 30 minutes by pledging gold, without any credit score check or income proof.
This calculator goes beyond basic EMI computation. It lets you toggle between EMI and bullet repayment modes, adjust LTV ratios up to the RBI maximum of 75%, and compare interest rates across 10 lenders including SBI, Muthoot Finance, Manappuram, HDFC Bank, and IIFL.
Gold Loan Formula: How Is the Loan Amount Calculated?
The gold loan amount is determined by three factors: gold weight, per-gram rate (based on purity), and the LTV ratio set by RBI.
Loan Amount = Gold Weight (g) x Rate Per Gram x LTV%
Worked Example: 50 grams of 22K gold
Gold Loan Rate Per Gram: 18K, 22K, and 24K
The per-gram loan amount varies significantly by gold purity. Higher purity means higher value per gram and consequently a larger loan amount. Here is the approximate breakdown:
| Purity | Market Rate/g | At 75% LTV | At 70% LTV | At 65% LTV |
|---|---|---|---|---|
| 24K (999) | Rs 7,800 | Rs 5,850 | Rs 5,460 | Rs 5,070 |
| 22K (916) | Rs 7,150 | Rs 5,363 | Rs 5,005 | Rs 4,648 |
| 18K (750) | Rs 5,850 | Rs 4,388 | Rs 4,095 | Rs 3,803 |
Gold Loan Interest Rates: 10 Lenders Compared (June 2026)
Interest rates for gold loans in India vary significantly between banks (8.5-12%) and NBFCs (11-26%). Banks offer lower rates but slower processing. NBFCs like Muthoot and Manappuram offer instant disbursement but at higher rates.
| Lender | Type | Rate (p.a.) | Max Tenure | Processing | Interest on Rs 1L (12 mo) |
|---|---|---|---|---|---|
| SBI | Bank | 8.65% | 36 mo | 0.50% | Rs 8,650 |
| HDFC Bank | Bank | 10.50% | 24 mo | 1.00% | Rs 10,500 |
| ICICI Bank | Bank | 10.00% | 12 mo | 1.00% | Rs 10,000 |
| Axis Bank | Bank | 11.00% | 24 mo | 1.00% | Rs 11,000 |
| Canara Bank | Bank | 9.25% | 36 mo | 0.50% | Rs 9,250 |
| BOB | Bank | 9.50% | 24 mo | 0.50% | Rs 9,500 |
| PNB | Bank | 9.60% | 12 mo | 1.00% | Rs 9,600 |
| Muthoot | NBFC | 12.00% | 36 mo | 1.00% | Rs 12,000 |
| Manappuram | NBFC | 12.00% | 12 mo | 1.00% | Rs 12,000 |
| IIFL | NBFC | 11.00% | 24 mo | 1.50% | Rs 11,000 |
SBI Gold Loan: Rate, Calculator, and Key Features
SBI offers one of the lowest gold loan interest rates among banks, starting at 8.65% p.a. SBI gold loans are available up to Rs 50 lakh with tenure up to 36 months. The processing fee is 0.50% of the loan amount, which is lower than most competitors.
Muthoot Finance Gold Loan: Rate and Calculator
Muthoot Finance is India largest gold loan NBFC with over 5,600 branches. Muthoot processes gold loans in 15-30 minutes, making it the fastest option for urgent fund requirements. Rates start at 12% p.a. but can go up to 26% depending on the scheme.
EMI vs Bullet Repayment: Which Is Better for Gold Loans?
Gold loans offer two primary repayment modes. The right choice depends on your cash flow pattern and how you plan to repay the loan.
| Feature | EMI Repayment | Bullet Repayment |
|---|---|---|
| Monthly payment | Rs 26,445 | Rs 2,625 |
| Payment includes | Principal + Interest | Interest only |
| Principal repayment | Spread across tenure | Full amount at maturity |
| Total interest paid | Rs 17,335 | Rs 31,500 |
| Best for | Salaried with steady income | Business owners, short-term needs |
| Risk | Lower (principal reduces monthly) | Higher (full principal due at end) |
Gold Loan Eligibility: RBI 75% LTV Rule
Gold loan eligibility is primarily based on the value of gold you pledge, not your income or credit score. This makes it one of the most accessible loan products in India.
Gold Loan vs Personal Loan: Which Should You Choose?
Both gold loans and personal loans provide quick funds, but they differ significantly in cost, speed, and risk. Here is a side-by-side comparison to help you decide:
| Feature | Gold Loan | Personal Loan |
|---|---|---|
| Interest rate | 8.5-18% p.a. | 10.5-24% p.a. |
| Collateral | Gold jewellery required | None (unsecured) |
| Credit score needed | Not required | 700+ recommended |
| Processing time | 15 min to 2 hours | 1-3 days |
| Max tenure | 1-3 years | 5-7 years |
| Income proof | Not required | Required (salary slips, ITR) |
| Risk | Risk of losing gold on default | No asset risk, but affects credit score |
| Best for | Short-term, urgent needs | Longer-term, larger amounts |
If you own gold and need funds for less than 12 months, a gold loan at 8.5-10% is significantly cheaper than a personal loan at 10.5%+. For longer tenures or larger amounts without pledging assets, use our EMI calculator to compare options.
How to Use This Gold Loan Calculator
This calculator provides a complete gold loan analysis in five steps:
- Enter Gold Weight and Purity: Set the weight in grams and select the purity (24K, 22K, or 18K). The per-gram rate adjusts automatically.
- Adjust the Gold Rate: The calculator uses an approximate market rate. You can edit this to match your lender valuation, which is typically 5-10% below market.
- Set LTV Ratio: Adjust the Loan-to-Value ratio. RBI caps this at 75%. Some conservative lenders may offer 65-70%.
- Choose Interest Rate and Tenure: Set the rate offered by your lender and the loan duration. Compare rates from 10 lenders in the sidebar.
- Select Repayment Mode: Toggle between EMI (principal + interest monthly) and Bullet (interest only, principal at maturity) to see the difference in monthly outflow.
Frequently Asked Questions (FAQs)
Disclaimer: All calculations are indicative only. Gold loan amounts depend on the lender internal valuation, which may differ from market rates. Interest rates shown are indicative starting rates as of June 2026 and are subject to change. This calculator is for educational and planning purposes only and does not constitute financial advice. Consult your lender for exact terms.