Gold Loan Calculator 2025 – India EMI & Interest Calculator Updated Feb 2026
A gold loan lets you unlock liquidity from idle gold jewelry or coins without selling them. In India, banks and NBFCs offer gold loans at competitive interest rates — typically 7–24% per annum — with loan amounts up to 90% of your gold's market value. Use our Gold Loan Calculator to instantly estimate your EMI, total interest payable, and loan eligibility based on gold weight and purity.
Key Takeaways
- LTV ratio: Lenders offer 75–90% of gold's current market value as the loan amount, depending on your profile
- Interest rates: 7–24% per annum — lower than personal loans (10–24%); varies by bank/NBFC and gold purity
- Quick processing: Gold loans are often approved instantly — gold tested, valued, and disbursed same day, ideal for emergencies
- Repayment flexibility: Choose EMI, bullet payment, or interest-only during tenure with flexible foreclosure options
- No CIBIL requirement: Many lenders don't check credit score — loan amount is based solely on gold value and purity
- Purity matters: 22K–24K gold attracts highest LTV; 18K receives less — lower purity reduces loan amount proportionally
How Gold Loans Work in India
Gold loans are secured loans where you pledge gold jewelry, coins, or bars as collateral. The lender assesses purity (hallmark/BIS certification) and weight to determine the fair market value. The loan amount is typically 75–90% of this value (called Loan-to-Value or LTV ratio), capped by the RBI at 90% for bullet repayment schemes.
Gold Loan EMI Formula
Where: P = Principal loan amount, r = Monthly interest rate (Annual rate ÷ 12 ÷ 100), n = Tenure in months
For example: Gold worth ₹2,00,000 at 75% LTV = ₹1,50,000 loan. At 10% p.a. interest for 12 months → EMI ≈ ₹13,215; Total interest ≈ ₹8,578.
Gold Loan Interest Rates (2025)
Interest rates vary across banks and NBFCs. Here's a comparison of leading lenders:
| Lender | Interest Rate | Max LTV | Processing Fee |
|---|---|---|---|
| SBI Gold Loan | 8.75%–9.60% p.a. | 75% | 0.50% + GST |
| HDFC Bank | 9.00%–17.00% p.a. | 75% | 1.50% + GST |
| ICICI Bank | 9.00%–19.76% p.a. | 75% | 1.00% |
| Muthoot Finance | 12.00%–24.00% p.a. | 90% | Nil–1% |
| Manappuram Finance | 12.00%–26.00% p.a. | 80% | Nil |
| Axis Bank | 13.50%–17.00% p.a. | 75% | 1.00% + GST |
Gold Purity & LTV Impact
Gold purity significantly affects how much loan you can get. Lenders use BIS hallmarked gold purity to calculate net gold value:
| Purity (Karat) | Fineness | Typical LTV | Value per gram (approx.) |
|---|---|---|---|
| 24K (999) | 99.9% | 90% | ₹7,000–₹7,500 |
| 22K (916) | 91.6% | 75–85% | ₹6,400–₹6,900 |
| 20K (833) | 83.3% | 70–80% | ₹5,800–₹6,300 |
| 18K (750) | 75.0% | 65–75% | ₹5,200–₹5,700 |
Gold Loan Repayment Options
Unlike standard EMI loans, gold loans offer multiple repayment structures:
- Regular EMI: Equal monthly payments covering both principal and interest — best for salaried borrowers
- Bullet Repayment: Pay only interest monthly; repay full principal at end of tenure — common with Muthoot, Manappuram
- Interest-Only: Pay monthly interest from the start; principal at maturity — lowers monthly outgo
- Overdraft (OD) / Flexi Loan: Credit line against gold; pay interest only on utilized amount — SBI, HDFC offer this
Tips to Maximize Your Gold Loan
Expert Tip: Compare lenders before pledging. NBFCs like Muthoot offer higher LTV (up to 90%) but at higher rates. PSU banks like SBI offer lower rates (sub-10%) but typically cap LTV at 75%. Use our calculator to compare total EMI and interest cost across lenders.
- Use BIS hallmarked jewelry — banks accept only 18K–24K; ornamental gold may be rejected
- Check processing, valuation, and foreclosure charges before signing — these add to effective cost
- Pre-pay when possible — gold loans rarely have prepayment penalties, saving significant interest
- Compare OD facility vs. bullet repayment — OD saves interest if you repay in parts early
- Keep tenure short — longer tenure = lower EMI but much higher total interest paid
Gold Loans & Asset-Backed Lending Around the World
Gold loans are popular across many countries as a fast, collateral-based financing option. The structure, interest rates, and regulatory frameworks differ significantly by country.
| Country | Max LTV Ratio | Typical Interest Rate | Key Lenders / Programs | Notes |
|---|---|---|---|---|
| India | 75% (RBI regulated); some NBFCs offer up to 90% under special schemes | 7–24% per annum; Muthoot Finance ~8.5–17%; HDFC Bank ~11–16%; Manappuram Finance ~12–24% | Muthoot Finance, Manappuram, HDFC Bank, SBI, IIFL Finance; Kisan Gold Card for farmers | World’s largest gold loan market. Indians hold an estimated 25,000–27,000 tonnes of gold. RBI caps gold loan LTV at 75%. No CIBIL check required at most NBFCs. Gold must be 18K–24K hallmarked jewelry. Processing: same day to 30 minutes. Bullet repayment widely available. |
| United States | Varies; pawnshops: 25–60%; banks: rare; online gold buyers differ | Pawnshop: 80–300% APR equivalent; some online lenders ~7–15% for large amounts; no standardized gold loan product | US Gold Bureau, APMEX, pawnshops (Dave’s, SuperPawn); some credit unions offer bullion-backed loans | Gold loans not a mainstream banking product in the US. Most gold-backed financing is through pawnshops (high cost) or specialized precious metals lenders. Some platforms offer crypto-style gold-backed stablecoins. Home Equity Lines of Credit (HELOCs) preferred for secured borrowing. |
| United Kingdom | 50–70% typical; regulated by FCA for lending activities | ~8–18% per annum from specialist lenders; pawnbrokers: higher effective rates | Ramsdens, H&T Group (Harvey & Thompson), Hatton Garden Metals; some specialist lenders | Pawnbroking regulated by FCA under Consumer Credit Act. Gold loans growing in popularity as cost-of-living pressures increase. UK lacks a major structured gold loan NBFC like India. Gold must be assayed before loan; current gold price ~£2,000+/troy oz (2024). |
| UAE / Middle East | Up to 80–85% for short-term gold loans; regulated by Central Bank UAE | 5–12% per annum at banks; higher at gold souk lenders | Emirates NBD, ADCB, Mashreq Bank; gold souks also provide informal gold-backed credit | UAE historically high gold ownership due to South Asian diaspora and tax-free gold trading. Dubai Gold Souk world’s largest physical gold market. Central Bank regulates gold-backed lending tightly. Gold dinar lending historically significant. Growing fintech platforms offering digital gold loans. |
| China | 60–70% at banks; higher at licensed pawnshops | Bank rates: 4.5–8% per annum; pawnshops: 15–60% annual equivalent | ICBC, China Construction Bank; licensed pawnshops (dian); gold leasing products from Chinese Gold & Silver Exchange Society | China is the world’s largest gold producer and consumer. Gold-backed personal loans growing but less structured than India. Corporate gold leasing (jewelry manufacturers) more common than retail gold loans. PBOC regulates maximum LTV ratios. |
| Global Trend | ISBAs (Islamic finance): Murabaha & Ijara gold structures; 70–80% LTV typical | Profit rates (not interest): 5–12% equivalent under Sharia-compliant structures; varies by GCC country | Al Rajhi Bank (Saudi Arabia), Bank Islam Malaysia, Dubai Islamic Bank; AAOIFI standards govern gold-backed sukuk | Islamic finance gold products structured as Murabaha (cost-plus sale) or Qard Hassan (benevolent loan). AAOIFI Sharia Standard 57 governs gold and silver trading in Islamic finance. Global Islamic gold finance market growing at ~8–10% annually. Malaysia and GCC lead Sharia-compliant gold loan innovation. |
Gold loan interest rates and LTV ratios vary by lender, gold purity, tenure, and prevailing regulations. Always compare multiple lenders and read terms carefully before pledging gold. RBI regulations apply to Indian banks and NBFCs. Seek financial advice before using gold as loan collateral.
Frequently Asked Questions
The lender assesses the gold's purity (karat) and weight, multiplies by the current market rate to get fair value, then offers 75–90% of that value as the loan amount. For example: 50g of 22K gold at ₹6,500/g = ₹3,25,000 value → loan up to ₹2,43,750 at 75% LTV.
Rates range from 8.75% p.a. (SBI) to 26% p.a. (some NBFCs). PSU banks and major private banks offer 9–17%; NBFCs like Muthoot and Manappuram charge 12–26% but offer higher LTV and faster disbursement.
Most gold loans have tenure of 3 months to 3 years (36 months). Some NBFCs offer shorter bullet-payment cycles of 1, 3, or 6 months with renewal options. Banks like SBI offer up to 36 months for EMI-based schemes.
Most lenders do not require a minimum CIBIL score for gold loans since the loan is fully secured by the physical gold. NBFCs like Muthoot and Manappuram typically approve without credit score requirements.
If you default, the lender has the right to auction your gold after serving a legal notice. The auction proceeds are used to recover the outstanding principal, interest, and charges. Any surplus is returned to you.
Most banks and NBFCs accept gold coins (up to 50g per RBI guidelines). Some accept gold bars. However, many NBFCs accept only gold jewelry. Always check with the specific lender before visiting the branch with gold coins or bars.
Gold loan interest is tax deductible only if used for specific purposes: business/professional purposes (Section 37), purchase of a house (Section 24b), or investment. Personal gold loans used for consumption are not eligible. Consult a CA for specific guidance.
Lenders typically reject: gold below 18K purity, gold with embedded stones (only net gold weight counted), government-minted gold ETF units (physical only), and gold coins exceeding 50g per RBI norms. Antique gold may also be rejected by many lenders.
About This Calculator
Created by: CalculatorZone Financial Team
Last Updated: February 20, 2026
This calculator estimates gold loan EMI, total interest, and loan eligibility based on current Indian market rates and RBI LTV guidelines. Actual loan amounts are determined by the lender based on their valuation. Check with your bank or NBFC for exact figures and applicable charges.
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