💰 Gold Loan Calculator
Calculate loan amount against gold jewelry, coins & bars. Compare rates and check margin call risks
🏆 Gold Details
👤 Loan Requirements
📋 Loan Terms
⚠️ Important Disclaimer
This calculator provides estimated gold loan amounts and costs based on current market conditions and typical lender policies.
Actual loan approval, interest rates, and LTV depend on gold purity assessment, current gold prices, lender policies, and documentation.
Gold prices are highly volatile and margin calls may be triggered if gold value falls below loan amount plus margins.
Storage, insurance, and processing fees vary by lender and may not be included in basic rate calculations.
Gold loan regulations and tax implications may vary. Consult with lenders and tax advisors for personalized guidance.
Always verify current gold rates, lender terms, and documentation requirements before finalizing any gold loan agreement.
What Is a Gold Loan and How Does It Work?
A gold loan is a secured loan where you pledge gold jewellery, coins, or bars with a bank, NBFC, or cooperative society as collateral in exchange for funds. The lender assesses the purity and weight of your gold, calculates its current market value, and disburses a loan up to a fixed percentage of that value — known as the Loan-to-Value (LTV) ratio. Your gold is held securely by the lender until you repay the principal and interest, after which it is returned to you. Because the loan is fully backed by collateral, gold loans are approved quickly (often within hours), need minimal paperwork, and typically cost less than unsecured personal loans.
How Is Your Gold Loan Amount Calculated?
The eligible loan amount is derived in two steps:
- Gold Value = Weight (grams) × Current 24K Gold Rate × (Purity in Karat ÷ 24)
- Eligible Loan Amount = Gold Value × Applicable LTV %
Worked example: Suppose you pledge 50 grams of 22K gold when the 24K rate is ₹6,000/gram.
- Gold Value = 50 × ₹6,000 × (22 ÷ 24) = ₹5,50,000
- At 75% LTV, Eligible Loan = ₹5,50,000 × 75% = ₹4,12,500
Lenders may further adjust this base value for factors like BIS hallmark certification (usually a small premium), the age and condition of ornaments (older pieces may be valued more conservatively), and whether the gold is in the form of coins/bars versus jewellery (investment-grade gold often qualifies for a slightly higher LTV). Enter your own details in the calculator above to get a personalised estimate.
Gold Loan Interest Rates in India (2026)
Gold loan interest rates vary significantly by lender type, loan purpose, tenure, and your relationship with the lender:
| Lender Type | Typical Interest Rate | Typical Max LTV | Best For |
|---|---|---|---|
| Banks (SBI, HDFC, ICICI, Federal Bank) | 9% - 13% p.a. | 75% - 80% | Lowest cost, existing bank customers |
| NBFCs (Muthoot, Manappuram, IIFL) | 12% - 18% p.a. | 75% - 90% | Fast disbursal, higher LTV, minimal documentation |
| Cooperative Societies/Banks | 9% - 12% p.a. | 65% - 80% | Rural and semi-urban borrowers, local relationships |
| Private/Unorganised Lenders | 16% - 24%+ p.a. | Varies | Last resort only — compare with banks/NBFCs first |
Rates are indicative and change with RBI policy, gold prices, tenure, and individual lender offers — always confirm the current rate before applying.
Documents Required for a Gold Loan
- Government-issued ID proof (Aadhaar, PAN, Voter ID, or Passport)
- Address proof (Aadhaar, utility bill, or rent agreement)
- Recent passport-size photographs
- The gold jewellery, coins, or bars to be pledged (for on-the-spot valuation)
Unlike personal loans, most gold loans do not require income proof, salary slips, ITRs, or a credit score check — since the loan is fully secured, your gold does the "talking." Some lenders may request basic income details only for very large loan amounts.
Gold Loan Eligibility Criteria
- Applicant should generally be 18-70 years of age
- Should be the rightful owner of the gold being pledged
- Gold purity is usually accepted between 18K and 24K
- No minimum income or credit score requirement in most cases
- Both salaried and self-employed individuals, farmers, and homemakers are eligible
Gold Loan vs Personal Loan: Which Should You Choose?
| Factor | Gold Loan | Personal Loan |
|---|---|---|
| Collateral | Required (your gold) | Not required |
| Interest Rate | ~9% - 18% p.a. | ~11% - 24% p.a. |
| Disbursal Time | Same day, often within hours | 1-7 days |
| Income/Credit Score Check | Usually not required | Mandatory |
| Risk | Risk of losing gold on default | No asset at risk, but affects credit score |
Understanding LTV and Margin Call Risk
The Loan-to-Value (LTV) ratio is the percentage of your gold's value that a lender is willing to disburse as a loan. Most banks and NBFCs cap gold loan LTV at around 75% to build in a safety cushion against gold price volatility. If gold prices fall sharply after you take the loan, your outstanding loan amount could exceed the safe LTV threshold against the gold's new value — this triggers a margin call, where the lender asks you to repay part of the loan, pledge additional gold, or top up the difference. Failing to respond can lead to auction of your pledged gold. Borrowing at a lower LTV (60-70% instead of the maximum 85-90%) gives you a larger safety margin and reduces this risk — the calculator above shows your personalised safety margin and breakeven gold price.
Tips to Get the Best Gold Loan Deal
- Compare rates across at least 3-4 banks and NBFCs before finalising — a 1-2% rate difference adds up significantly over the tenure
- Choose a lower LTV if you can, to reduce margin call risk during gold price dips
- Get gold with a BIS hallmark for faster, more favourable valuation
- Prefer reducing-balance interest over flat/simple interest — it costs less overall
- Check for hidden charges: processing fee, valuation fee, storage fee, and insurance, not just the headline interest rate
- If you're an existing bank customer, ask about preferential rates for account holders
- Track gold prices during the loan tenure so you're not caught off guard by a margin call