Gold Loan Calculator - Eligibility, EMI & Interest | 1Dollars

Free Gold Loan Calculator

Estimate gold-loan eligibility, EMI or other repayment, interest, fees and net disbursal from eligible gold weight, purity, lender valuation, LTV, annual rate and tenure. Use custom terms worldwide or the optional India consumption-loan illustration.

Gold Loan Eligibility and Repayment Calculator

Enter the lender's valuation rate and loan terms. The calculator separates collateral value, maximum estimated principal, repayment, interest, fees and cash received.

Lender valuation rate

Use the lender's eligible collateral rate, not jewellery retail price or making charges.

Eligible gold collateral

Exclude stones, gems, lac, strings, fastenings and other value the lender will not count as gold.

Loan eligibility and repayment

Enter the maximum LTV offered by the lender. This mode works with all listed currencies and lender-specific collateral policies.

Illustrative estimate only, not a lender offer or approval. Actual eligible weight, assay, price, LTV, interest, charges, repayment schedule and borrower assessment may differ.

Reviewed on 15 July 2026 using the RBI's 2025 Gold and Silver Collateral Directions, BIS hallmarking information and NIST mass conversions.

A gold loan is secured by eligible gold collateral, but the loan amount is not the jewellery retail bill. Lenders determine eligible net gold weight, assay purity and a valuation rate, then apply an LTV ceiling. Interest, repayment structure and upfront charges determine the real cost.

Quick answer: enter the lender's rate and its purity basis, gross pledged weight, excluded non-gold weight and assessed purity. Then choose an LTV rule, repayment method, annual interest rate, tenure and fees to estimate eligibility and total borrowing cost.

How the Gold Loan Calculator Works

The tool first converts weight to grams and removes stones or other excluded material. It normalizes the lender's entered rate to the assessed collateral purity, calculates collateral value and applies either a custom lender LTV or the optional RBI consumption-loan tiers.

Eligible gold-alloy weight = gross pledged weight − excluded material weight
Collateral rate / g = entered rate / unit weight × assessed purity / quoted-rate purity
Estimated collateral value = eligible weight × assessed collateral rate / g
Custom maximum principal = collateral value × lender LTV

Repayment is then calculated on either the maximum estimated principal or a separate requested principal. If the request exceeds the estimate, the tool keeps the repayment comparison visible but clearly flags the gap.

Gold Loan Amount per Gram

A practical gold-loan amount per gram is derived from the lender's eligible rate, purity adjustment and LTV. It is not the retail price of new jewellery and normally does not include making charges, stones, brand premium or tax paid at purchase.

Estimated loan per eligible gram = assessed collateral rate per gram × applicable LTV

When the entered rate is already quoted for the same purity as the pledged gold, choose that purity basis. For example, a 22K lender rate paired with 22K assessed collateral should not receive another 91.6% reduction.

Net Weight, Purity and Lender Valuation

Gross pledged weightThe complete item before stones, lac, threads, fastenings or other excluded materials are removed.
Eligible alloy weightGross weight minus the entered excluded weight; the selected purity is applied through the rate adjustment.
Assayed purityThe fineness or karat accepted by the lender after its testing procedure, not merely the seller's original claim.
Valuation rateThe lender's eligible collateral rate for the stated unit and purity basis, not a live retail-jewellery quote.

For RBI-regulated loans in India, the 2025 Directions require valuation at the lower of the preceding 30-day average closing price or previous-day closing price for the specific purity, using an IBJA or SEBI-regulated commodity-exchange publication. Only intrinsic metal value is counted; stones and gems are excluded.

India RBI Gold Loan LTV Rules Used Here

The optional India mode illustrates consumption loans under the Reserve Bank of India (Lending Against Gold and Silver Collateral) Directions, 2025, required to be adopted no later than 1 April 2026.

Total consumption-loan amount per borrowerMaximum LTVCalculator treatment
Up to INR 2.5 lakh85%Tests the maximum principal that remains inside this tier
Above INR 2.5 lakh and up to INR 5 lakh80%Uses the middle tier only when the loan amount is above the lower threshold
Above INR 5 lakh75%Uses 75% when the applicable amount exceeds INR 5 lakh

For a bullet repayment loan, RBI defines the amount for LTV tiering as total principal and interest payable at maturity. The calculator therefore solves the maximum bullet principal after accounting for simple interest, instead of applying the tier to principal alone.

Scope warning: India mode covers consumption-loan tier mechanics only. It is not a complete regulatory eligibility test. It does not model existing loans against the same collateral, income-generating loan terms, credit assessment, lender portfolio policy, top-ups or ongoing LTV changes.

Eligible Gold and Weight Ceilings in India Mode

The RBI framework defines eligible collateral as gold or silver jewellery, ornaments or coins. It prohibits lending against primary gold or financial assets backed by primary gold. The calculator therefore requires custom mode for bars, bullion, ETFs or other lender-specific items.

  • Gold ornaments: aggregate pledged weight for all loans to a borrower cannot exceed 1 kilogram.
  • Gold coins: aggregate pledged weight for all loans to a borrower cannot exceed 50 grams.
  • These are borrower-level aggregate ceilings. Reduce the input for eligible collateral already pledged elsewhere.

Gold Loan EMI, Bullet and Interest-Only Methods

MethodMonthly paymentAmount due at maturity
Reducing-balance EMICombined principal and interest EMINormally the final EMI, subject to lender rounding
Simple-interest bulletNo scheduled monthly payment in this illustrationEntire principal plus simple interest
Monthly interestInterest on principal each monthPrincipal plus the final month's interest

India consumption loans with bullet repayment are capped at 12 months under the RBI Directions. Custom mode allows another entered tenure for products or jurisdictions governed by different terms.

Gold Loan EMI Formula

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

P is principal, r is the monthly rate and n is the number of monthly payments. At a 0% entered annual rate, the calculator divides principal equally across the entered months.

Bullet interest = principal × annual rate × tenure in years

The bullet and monthly-interest options use simple interest on the original principal. A lender may instead use daily accrual, compounding, irregular periods, overdue interest or another convention, so verify the Key Fact Statement and agreement.

Fees, Net Disbursal and Total Borrowing Cost

A processing fee can be deducted from the sanctioned amount or collected separately. The choice changes cash received but not the displayed total borrowing cost.

Net disbursal = principal − deducted upfront fees
Total borrowing cost = total interest + processing fee + fixed upfront fees

Assaying, valuation, documentation, insurance, auction, late-payment or renewal charges are not automatically included. Enter only known upfront charges and review all other fees separately.

Worked Gold Loan Example

Assume 20 grams of 22K gold, no excluded stone weight, a 22K lender valuation of CU 7,000 per gram and a custom LTV of 75%. At 12% annual interest over 12 months with reducing-balance EMI and a 1% processing fee:

  • Estimated collateral value = 20 × CU 7,000 = CU 140,000
  • Maximum estimated principal = CU 140,000 × 75% = CU 105,000
  • Approximate monthly EMI = CU 9,329.12
  • Approximate total interest = CU 6,949.47
  • Processing fee = CU 1,050
  • Net disbursal when the fee is deducted = CU 103,950
  • Total borrowing cost = CU 7,999.47

CU means any currency unit. The example uses mathematical assumptions, not current lender rates or a guaranteed offer.

Why the Sanctioned Gold Loan May Be Lower

  • The lender's assay purity or eligible net weight is lower than entered.
  • The eligible reference price is below the retail or market rate you expected.
  • The lender uses an internal LTV below the regulatory maximum.
  • Existing exposure to the borrower changes the applicable tier or available limit.
  • Repayment capacity, KYC, ownership evidence or credit assessment is incomplete.
  • Coins or ornaments exceed permitted or lender-specific aggregate limits.

Before Taking a Gold Loan

  • Compare annual rate, APR or equivalent cost, repayment method and every fee.
  • Obtain the assay certificate showing gross weight, deductions, net weight, purity and collateral value.
  • Read auction triggers, notice terms, reserve-price method and shortfall liability.
  • Check early repayment, part-payment, renewal and overdue-interest conditions.
  • Confirm how and when pledged gold will be released after full settlement.
  • Keep receipts, photographs, certificates, loan agreement and Key Fact Statement.

Related Gold Loan Calculators

Gold Loan Eligibility Calculator Gold Loan EMI Calculator Gold Loan Interest Calculator Gold Loan LTV Calculator Gold Loan Repayment Calculator Gold Value Calculator All Metals Calculators

Frequently Asked Questions

How is gold loan eligibility calculated?
A lender values eligible net gold weight at the accepted purity and valuation rate, then applies its permitted LTV. Borrower checks, existing exposure and policy can reduce the final sanction.
How much gold loan can I get per gram?
Multiply the lender's eligible assessed rate per gram by the applicable LTV. The figure depends on purity, excluded weight, valuation method and loan tier, so it is not one universal amount.
What LTV does this gold loan calculator use?
Custom mode uses the percentage you enter. India mode illustrates RBI consumption-loan ceilings of 85%, 80% and 75% based on the applicable total loan amount.
Are stones and making charges included in gold loan value?
No. Enter stones and other excluded material separately. Retail making charges, gems, brand premium and tax are not intrinsic gold value for this calculation.
How is gold loan EMI calculated?
The EMI option uses the standard reducing-balance formula with principal, monthly interest rate and number of monthly payments. Lender rounding or daily accrual can create a small difference.
What is a bullet gold loan?
Both principal and interest are due at maturity. In the RBI India illustration, a consumption bullet loan is capped at 12 months and its total maturity amount is used for LTV tiering.
What is net disbursal?
It is the principal actually received after any upfront fees deducted by the lender. If fees are paid separately, net disbursal equals the entered principal in this tool.
Can I enter a requested loan below the eligible maximum?
Yes. Select requested principal to calculate repayment on that amount. The result shows whether it is within or above the estimated maximum.
Can gold bars or ETFs be used in India RBI mode?
No. The illustrated framework treats jewellery, ornaments and eligible coins as collateral and prohibits lending against primary gold or financial assets backed by primary gold.
Does this calculator guarantee gold loan approval?
No. It is an educational estimate. The lender decides assay, valuation, LTV, rate, fees, repayment capacity, documentation and final sanction.

Official Reference Sources

Disclaimer: This calculator and guide provide general educational estimates, not a live gold price, assay, appraisal, lender offer, loan approval, Key Fact Statement, legal opinion, financial advice or regulatory compliance determination. Rules and lender terms vary by country, loan purpose, institution and borrower. Verify current valuation, eligible collateral, LTV, interest method, fees, repayment obligations, auction terms and applicable law directly with the lender before pledging gold.