Gold loan interest calculator
See how much your gold can borrow, what you'll pay each month, and the total interest, for any of the three ways lenders let you repay.
Your gold
Your loan
| Same amount and months, repaid by EMI | Rate | Total interest |
|---|
Estimates only. Lenders deduct stones and non-gold parts, use their own benchmark price, and may add a processing fee. Ask for the full annual rate in writing.
How much can you borrow?
RBI sets a maximum loan-to-value (LTV): the share of your gold's value a lender may lend. Under the rules in force since April 2026:
| Loan amount | Maximum LTV | ₹1 lakh of gold can support |
|---|---|---|
| Up to ₹2.5 lakh | 85% | ₹85,000 |
| ₹2.5 lakh to ₹5 lakh | 80% | ₹80,000 |
| Above ₹5 lakh | 75% | ₹75,000 |
For bullet loans, where you pay everything at the end, the interest due at maturity counts inside the limit, so you can borrow a little less. Lenders can always choose to lend less than the maximum.
The three ways to repay
- EMI: a fixed amount every month covering interest and principal. Predictable, and the loan shrinks every month.
- Interest monthly, principal at the end: small monthly payments, then the full loan amount at the end. Good if a lump sum is coming, but you must plan for that final payment.
- Bullet: nothing monthly; loan plus all interest at the end. Easiest now, most expensive later, and the most likely to end in auction if you're not ready. The calculator assumes interest compounds monthly; if your lender charges simple interest, the cost is slightly lower.
Thinking of selling instead? See why a gold loan usually costs far less than selling. Comparing with a personal loan? Here is the side-by-side.
Questions people ask
How is my gold valued for a loan?
Lenders value only the gold content: they test purity, weigh the jewellery, and deduct stones, beads and other non-gold parts. RBI requires them to use a published benchmark price for 22-carat gold, scaled down for lower purity. Your valuation will usually be a little below the price on a jeweller's board.
Which repayment option is cheapest?
EMI and monthly-interest options cost about the same and are cheaper than paying everything at the end, because interest doesn't build on interest. Bullet repayment suits people who expect a lump sum, such as a harvest or bonus, but check whether the lender compounds interest.
What rate should I enter?
Public sector banks typically charge about 9 to 12% a year in 2026, private banks a little more, and gold-loan NBFCs 12 to 24%. Ask the lender for the annual rate and all fees in writing, then enter that.
Can I repay early?
Most gold loans can be closed early without a charge, so you pay interest only for the months you actually used the money. Confirm this before you sign.