Gold Loan Calculator
Enter your gold weight, purity and current rate to see how much you can borrow, your EMI and total interest — instantly.
- Free — no sign-up
- Instant, on-screen results
- Built by our CA · CS team
- Rules cited on the page
Enter your figures — the result on the right updates as you type.
Loan & repayment breakdown
Get the best gold-loan offer
We help you compare lender rates, LTV and processing fees so you borrow smart.
Disclaimer: Indicative estimate only. Actual eligibility, LTV and interest depend on the lender's valuation, gold assay and your profile. TaxClue does not lend; the lender sanctions the loan.
How a gold loan is worked out
A gold loan is a secured loan against the value of your gold. The lender assays your gold, values it at the current 24K rate adjusted for purity, and lends a percentage of that value — the loan-to-value, which the RBI caps at 75%. You then repay via EMI, or pay interest through the tenure and the principal at the end.
Purity & the formula
Only the pure-gold content is valued, so purity matters. A 24K gram is treated as 100% gold, 22K as 91.7% and 18K as 75%. Gold value = weight × 24K rate × purity factor; eligible loan = gold value × LTV.
| 24K (pure) | 1.0000 |
| 22K (916 hallmark) | 0.9167 |
| 18K | 0.7500 |
| Gold value | wt × rate × purity |
| Eligible loan | value × LTV% |
| EMI | P·r(1+r)ⁿ / ((1+r)ⁿ−1) |
| Total interest | (EMI × n) − P |
Worked example
50 grams of 22K gold, valued at a 24K rate of ₹7,000/gram, at 75% LTV and 12% interest over 12 months on an EMI plan:
Key terms explained
Loan-to-value (LTV)
The share of your gold's value a lender will advance. The RBI caps gold-loan LTV at 75%, so ₹1,00,000 of gold gets you a maximum ₹75,000 loan. A lower LTV means a safer loan and less risk of a top-up call if gold prices fall.
Purity factor
Gold jewellery is rarely pure. Value is based on pure-gold content — 22K is 91.7% and 18K is 75% of the 24K rate. Stones, other metals and making charges are excluded from the valuation.
Repayment options
EMI repays principal and interest evenly; bullet charges interest through the term with principal at the end; overdraft lets you draw and repay flexibly, paying interest only on what you use.
Tax treatment
Gold-loan interest is not tax-deductible for personal use. It is deductible only when the borrowed funds are used for business (Sec 36/37) or to buy/build a house (Sec 24), so keep proof of end use.
Questions people ask
Short answers on Gold Loan Calculator. Tap a question to open it.
01How much loan can I get against gold?
Lenders advance up to 75% of the value of the gold as loan-to-value, computed on the gold content at the prevailing rate — stones, and the making charges, are excluded from the valuation.
02How is the gold value assessed?
By net weight and purity. A 22-carat ornament is valued at about 91.6% of the reference rate for pure gold, and the lender applies its own average of recent rates rather than the spot price of the day.
03What repayment options are available?
Regular EMI, interest-only servicing with the principal at the end, or bullet repayment of interest and principal at maturity. Bullet options carry a higher effective cost but suit short-term cash needs.
04What happens if I do not repay?
The lender issues notices and can auction the pledged gold after the notice period. Any surplus after recovering dues is returned to the borrower.
05Is a gold loan better than a personal loan?
It is usually cheaper because it is secured, is sanctioned faster, and does not depend heavily on credit score or income proof. The trade-off is that your gold is at risk if you default.
More Finance & Registration tools
Picked from the same shelf. Every tool is free and runs in your browser.
Disclaimer: This tool gives indicative results for general guidance only and is not professional advice. Please verify with a qualified CA before acting on the numbers.