Free Gold Loan Repayment Calculator
Compare reducing-balance EMI, bullet repayment and monthly interest-only gold loan options using the same principal, rate and tenure. See regular payments, final balloon, total interest, fees and an equal monthly reserve.
Compare Gold Loan Repayment Methods
One input set, three cash-flow structures. Optional budget checks reveal whether a low regular payment hides a large maturity obligation.
REPAYMENT CASH-FLOW COMPARISON
| Measure | Reducing EMI | Bullet at maturity | Monthly interest-only |
|---|---|---|---|
| Regular monthly payment | — | — | — |
| Final contractual payment | — | — | — |
| Total interest | — | — | — |
| Total scheduled loan payments | — | — | — |
| Total borrowing cost (interest + fees) | — | — | — |
| Total cash paid, including separate fees | — | — | — |
| Equal monthly reserve target | — | — | — |
| Monthly budget test | Not tested | Not tested | Not tested |
| Maturity funds test | Not tested | Not tested | Not tested |
Results compare the same principal, nominal rate and tenure.
Planning estimate only. Lender compounding, day count, payment dates, late charges, insurance, taxes, renewals and official APR may differ.
Reviewed on 15 July 2026 using the Reserve Bank of India gold-collateral directions and Key Facts Statement framework.
A gold loan repayment plan changes when cash is paid and how quickly principal falls. This calculator holds principal, nominal rate and tenure constant so you can compare the cash-flow effect of reducing EMI, bullet repayment and monthly interest-only structures.
Three Gold Loan Repayment Options Compared
Gold Loan EMI Formula
P is principal, r is the monthly rate and n is the number of monthly payments. The calculator assumes payments are made on time at equal monthly intervals. At a 0% rate, EMI is principal divided by months.
Bullet Repayment Formula
This page uses simple interest for the bullet comparison. A lender may use daily accrual, different day-count conventions, renewal charges or another contractual method, so use the Key Facts Statement and agreement for the official amount.
Interest-Only Repayment Formula
Under this simplified structure, total interest equals monthly interest multiplied by tenure. At the same rate and tenure it matches the simple bullet interest, but the interest is paid earlier instead of entirely at maturity.
Worked Gold Loan Repayment Example
Assume a CU 100,000 loan, 12% annual rate, 12-month tenure and CU 1,200 total upfront fees. CU means any currency unit.
| Repayment method | Regular monthly payment | Final payment | Total interest |
|---|---|---|---|
| Reducing EMI | CU 8,884.88 | CU 8,884.88 | CU 6,618.55 |
| Bullet | CU 0 | CU 112,000 | CU 12,000 |
| Interest-only | CU 1,000 | CU 101,000 | CU 12,000 |
EMI saves about CU 5,381.45 of interest in this mathematical comparison because principal reduces throughout the year. Bullet and interest-only each require an equal reserve target of about CU 9,333.33 per month if the borrower wants to set aside the full scheduled amount evenly.
How Fees Affect Net Disbursal and Cost
Processing percentage and fixed fees are added to interest when the calculator reports total borrowing cost. Fee collection changes cash timing:
- Deducted from disbursal: the borrower receives principal minus fees but still repays the scheduled principal and interest.
- Paid separately upfront: the borrower receives the full principal and pays fees as a separate cash outflow.
This is not an official annual percentage rate. APR also depends on payment dates, fee treatment and other contractual cash flows.
Monthly Budget Test vs Maturity Funds Test
A bullet loan can pass a monthly-payment test merely because its regular contractual payment is zero. That does not show affordability. The tool therefore keeps two tests separate:
- Monthly budget: compares the entered budget with EMI or monthly interest. Bullet displays a balloon warning.
- Maturity funds: compares available maturity money with each method's final contractual payment.
India Bullet Gold Loan Repayment Rule
The RBI Directions define a bullet repayment loan as one where principal and interest are both due at maturity. For consumption loans, bullet tenure is capped at 12 months. India mode therefore requires INR and a tenure of no more than 12 months so the three-way comparison includes a valid consumption-bullet illustration.
The Directions also use the total amount repayable at maturity—principal plus interest—in the bullet-loan LTV numerator. Use the maturity amount from this page in the separate Gold Loan LTV Calculator when monitoring collateral coverage.
Read the Lender's Key Facts Statement
RBI's Key Facts Statement framework requires standardized disclosure for covered retail and MSME term loans, including the annual percentage rate and repayment schedule. Compare the calculator with the lender's KFS for:
- official APR and all included charges;
- payment dates, compounding and day-count method;
- late-payment, penal, renewal and closure conditions;
- net disbursal after deductions; and
- the exact balloon or final instalment.
Which Gold Loan Repayment Method Is Better?
The lowest regular payment is not automatically the best option. EMI generally reduces interest and maturity risk, but needs more monthly cash. Bullet maximizes payment deferral and creates the largest single due amount. Interest-only lowers the monthly obligation compared with EMI but leaves principal untouched.
Choose only after testing income stability, maturity-fund certainty, total cost and consequences of missed payment. Availability and terminology vary by lender and country.
What This Calculator Does Not Include
- Daily interest, irregular dates, grace periods or broken-period interest
- Prepayments, part-payments, renewals or changing interest rates
- Late fees, penal charges, taxes, insurance or auction expenses
- Gold valuation, eligibility, LTV monitoring or live market prices
- A lender-specific APR or official repayment schedule
Related Gold Loan Calculators
Frequently Asked Questions
What is the difference between EMI, bullet and interest-only gold loans?
Which gold loan repayment method has the lowest interest?
Does a bullet gold loan have no monthly payment?
What is the final payment on an interest-only gold loan?
What is the maximum India consumption bullet-loan tenure?
Are processing fees included in the comparison?
Why can bullet pass the monthly budget test?
What is the equal monthly reserve target?
Does this calculator use a live gold price or calculate LTV?
Will my lender's repayment amount match this result?
Official Reference Sources
Disclaimer: This calculator and guide provide general educational estimates, not a lender quote, official APR, Key Facts Statement, repayment schedule, credit decision, legal opinion or financial advice. Verify interest method, payment dates, fees, maturity obligation, prepayment terms, LTV consequences and default action directly with the lender.