Gold Loan EMI Calculator
Unlock the value of your gold jewelry with quick financing. Calculate EMI, compare rates, and get funds against your precious assets.
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Interest Rate (p.a.)
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EMI Breakdown
Gold Loans: Quick Funds Against Your Precious Assets
Gold loans are secured loans where you pledge your gold jewelry or ornaments to obtain funds. They offer one of the fastest loan disbursements with competitive interest rates since the loan is backed by tangible collateral. Whether for emergencies, business needs, or personal expenses, gold loans provide liquidity without requiring you to sell your valuable assets.
Indicative Gold Rates (per gram)
*Gold rates are indicative and vary daily. LTV (Loan-to-Value) regulated by RBI.
Types of Gold Loan Repayment
Regular EMI
Pay fixed monthly EMI comprising principal and interest throughout the tenure. Best for planned repayment with budgeted monthly outflow.
Interest-Only EMI
Pay only interest monthly and principal at maturity. Lower monthly burden but higher total cost. Suitable for short-term needs.
Bullet Repayment
Pay entire principal and interest at end of tenure. No monthly payments. Good for those expecting lump sum income later.
Overdraft Facility
Credit line against gold. Withdraw as needed, pay interest only on utilized amount. Flexible for business working capital needs.
Gold Loan Interest Rate Comparison
| Lender Type | Interest Range | Processing Fee | Max Tenure |
|---|---|---|---|
| Public Sector Banks (SBI, PNB) | 7.50% - 9.50% | 0.50% - 1% | 36 months |
| Private Banks (HDFC, ICICI) | 9.00% - 12.00% | 1% - 1.5% | 24 months |
| Gold Loan NBFCs (Muthoot, Manappuram) | 12.00% - 18.00% | Nil - 1% | 12-24 months |
| Cooperative Banks | 8.00% - 11.00% | 0.25% - 0.50% | 12 months |
Smart Tip: Compare LTV Ratios
While NBFCs may offer slightly higher interest rates, they often provide higher LTV (Loan-to-Value) ratios up to 75% compared to some banks at 65-70%. Calculate the actual loan amount you can get against your gold before choosing a lender based solely on interest rates.
Gold Accepted for Loan
- Gold Jewelry: Necklaces, bangles, rings, earrings, chains, and other ornaments
- Gold Coins: Bank-issued gold coins (usually up to 50 grams per coin)
- Gold Bars: Small gold bars from recognized refineries
- Purity: Minimum 18 karat gold (75% purity); 22K and 24K get higher valuation
- Not Accepted: Gold plated items, gold watches, gold artifacts, gold medals, temple jewelry
Advantages of Gold Loans
- Quick Disbursement: Funds disbursed within minutes to hours after gold appraisal
- No Credit Score Required: Loan against collateral, so credit history doesn't matter
- Lower Interest Rates: Secured nature means rates lower than personal loans
- Flexible Repayment: Choose EMI, interest-only, or bullet repayment options
- No End-Use Restrictions: Use funds for any purpose - business, medical, education, etc.
- Minimal Documentation: Just ID proof, address proof, and the gold
- Safe Storage: Gold kept in insured bank/NBFC lockers during loan tenure
- No Prepayment Penalty: Most lenders allow free prepayment
Documents Required for Gold Loan
- Identity Proof: Aadhaar, PAN, Passport, Voter ID, or Driving License
- Address Proof: Aadhaar, utility bill, rent agreement, or passport
- Passport-size photographs (1-2)
- The gold jewelry/ornaments to be pledged
- Original purchase invoice (optional but helpful for valuation)
Gold Loan Process
- Step 1: Visit lender branch with gold and documents
- Step 2: Gold is weighed and purity tested (karatmeter/XRF machine)
- Step 3: Loan amount calculated based on weight, purity, and current gold rate
- Step 4: Complete KYC and sign loan agreement
- Step 5: Gold securely stored, loan disbursed to account (often same day)
- Step 6: Repay as per chosen scheme, collect gold upon closure
Gold Loan FAQs
If you default on gold loan repayment, the lender will first send reminders and allow a grace period. If still unpaid, they can auction your pledged gold to recover the loan amount. RBI mandates lenders to give at least 7-day notice before auction and inform you of auction date, reserve price, and outstanding dues. Any amount recovered above your dues will be returned to you. It's advisable to communicate with the lender if facing difficulties - many offer loan restructuring or tenure extension options.
Yes, reputed lenders store pledged gold in secure vaults with comprehensive insurance coverage against theft, fire, and natural calamities. Banks and major NBFCs follow strict security protocols. You receive a detailed receipt listing each item with weight and purity. Upon loan closure, you get back the exact items you pledged. Choose RBI-regulated entities and always collect proper receipts with item descriptions.
Lenders use electronic karatmeters or XRF (X-ray fluorescence) machines for non-destructive purity testing. Weight is measured on calibrated electronic scales. The net weight considers only gold content - stones, enamel, and other materials are deducted. For example, if a 50-gram ornament has 5 grams of stones, only 45 grams of gold is considered. The loan amount is then calculated as: Net Gold Weight × Gold Purity Rate × LTV Percentage.
Absolutely! Gold loans have no end-use restrictions. Many small business owners and traders use gold loans for working capital, inventory purchase, or business expansion. Some lenders offer specific "Gold Loan for Business" products with overdraft facility - you can withdraw and repay multiple times within the limit, paying interest only on the utilized amount. This makes it ideal for businesses with fluctuating fund requirements.
RBI regulates the Loan-to-Value (LTV) ratio at maximum 75% of gold value. So if your gold is valued at ₹10 lakh, maximum loan is ₹7.5 lakh. Different lenders may offer lower LTVs (65-70%) for better rates. There's no absolute upper limit - it depends on how much gold you pledge. Some NBFCs offer loans from ₹3,000 to ₹1 crore or more. Banks typically have higher minimum amounts (₹10,000-25,000) but competitive rates for larger loans.