🏅 Gold Loan EMI Calculator

Calculate your gold loan EMI, total interest, and repayment schedule instantly

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Gold Loan EMI Calculator

Enter Gold Loan Details

Max 75% of gold market value (RBI LTV limit)
Gold loan rates: 7–29% (banks: 7–15%, NBFCs: 12–29%)
Typical gold loan tenure: 3–36 months
Used to calculate EMI affordability ratio

Gold Loan EMI FAQ

What is the typical interest rate for a gold loan?

Gold loan interest rates in India range from 7% to 29% per annum. Banks typically charge 7–15%, while NBFCs may charge 12–29%. Your rate depends on the lender, loan amount, and LTV ratio.

What is the maximum LTV ratio for a gold loan?

RBI guidelines cap the loan-to-value (LTV) ratio for gold loans at 75%. This means you can borrow up to 75% of your gold's current market value. Higher LTV usually means higher interest rates.

Can I prepay my gold loan without penalty?

Many lenders — especially banks — allow gold loan prepayment without a penalty. NBFCs may charge a small foreclosure fee. Always read the loan agreement before prepaying.

Understanding Gold Loans

What is a Gold Loan?

A gold loan is a secured loan where you pledge your gold jewellery or ornaments as collateral to borrow money. Because the loan is secured, lenders typically offer lower interest rates compared to personal loans, and approval is fast — often within a few hours.

How Gold Loan EMI is Calculated

Gold loan EMI uses the same standard formula as other term loans:

EMI = P × r × (1+r)^n / ((1+r)^n - 1)
Where:
P = Principal loan amount
r = Monthly interest rate (annual rate ÷ 12 ÷ 100)
n = Number of monthly installments

Types of Gold Loan Repayment

  • EMI-based: Fixed monthly payments covering both principal and interest
  • Bullet repayment: Pay the entire principal + interest at the end of tenure
  • Overdraft facility: Flexible withdrawals against pledged gold with interest only on the amount used

Key Factors That Affect Your Gold Loan

  • Gold purity: 22-carat gold is typically valued; 18-carat or below may get lower value
  • Market price: Loan amount is based on the current market price of gold
  • LTV ratio: RBI mandates a maximum of 75% LTV for gold loans
  • Lender type: Banks generally offer lower rates than NBFCs
  • Tenure: Gold loans are usually short-term (3–36 months)

Tips Before Taking a Gold Loan

  • Compare lenders: Check rates from banks and NBFCs before deciding
  • Check gold valuation: Understand how the lender values your gold
  • Read the fine print: Know the foreclosure charges and auction clauses
  • Choose EMI wisely: EMI-based repayment helps build financial discipline
  • Prepay when possible: Reduces interest burden significantly on short-tenure loans

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