Gold Loan Calculator India 2025
Loan Breakdown
12% p.a.
Lower rates, stricter eligibility
Gold Loan Calculation Formulas
Understand the mathematical formulas used to calculate gold loan EMIs, interest, and total amounts.
Gold Value Calculation
Calculate the current market value of your gold based on weight, purity, and current rates.
Gold Value = Weight (grams) × Gold Rate (₹/gram) × Purity FactorExample:
For 10 grams of 22K gold at ₹11,500 per gram
Variables:
Loan Amount Calculation
Determine the maximum loan amount based on Loan-to-Value (LTV) ratio.
Loan Amount = Gold Value × LTV RatioExample:
For gold value of ₹1,05,340 with 75% LTV
Variables:
EMI Calculation
Calculate Equated Monthly Installment using the standard EMI formula.
EMI = P × r × (1 + r)^n / ((1 + r)^n - 1)Example:
For ₹79,005 loan at 12% p.a. for 12 months
Variables:
Total Interest Calculation
Calculate the total interest payable over the loan tenure.
Total Interest = (EMI × Tenure) - Principal AmountExample:
For EMI of ₹7,012 over 12 months
Variables:
These formulas provide the mathematical foundation for the calculations. Actual results may vary based on rounding, compounding frequency, and specific lender policies.
How to Calculate Gold Loan Interest and Loan to Value Ratio?
What is LTV Ratio?
LTV (Loan-to-Value) ratio is the percentage of your gold's market value that you can borrow as a loan. It's a key factor that determines how much money you can get against your gold collateral.
For example, if your gold is valued at ₹1,00,000 and the LTV ratio is 75%, you can get a maximum loan of ₹75,000.
LTV Ratio by Lender Type
Lower rates, stricter policies
Higher rates, flexible policies
Quick Processing
Get funds within hours with minimal paperwork
Secure Storage
Your gold is safe in bank lockers with insurance
Flexible Repayment
Multiple repayment options available
Lower Rates
Better rates than personal loans
Gold Loan Eligibility Criteria
Age Requirements
Some lenders may have different age limits for senior citizens
Gold Purity Requirements
Higher purity gold gets better LTV ratios and interest rates
Acceptable Gold Items
Documents Required for Gold Loans
Mandatory Documents
Identity Proof
- • PAN Card (Mandatory)
- • Aadhaar Card
- • Voter ID Card
- • Driving License
- • Passport
Address Proof
- • Aadhaar Card
- • Utility Bills (Electricity/Water)
- • Bank Statement
- • Rental Agreement
- • Property Documents
Additional Documents
Gold Purchase Receipts
- • Bill of Purchase (if available)
- • Hallmark Certificate
- • Previous Valuation Reports
- • Insurance Documents
For Higher Amounts (₹1L+)
- • Income Proof (Salary Slip/ITR)
- • Bank Statements (6 months)
- • Business Proof (if applicable)
- • Passport Size Photographs
Gold Loan EMI Calculator & Repayment Options Explained
Regular EMI
How it Works
Fixed monthly payments covering both principal and interest
Example
₹1,00,000 loan at 12% for 12 months = ₹8,885 EMI
Best For
Regular income earners who prefer predictable payments
Bullet Repayment
How it Works
Pay only interest monthly, principal at the end
Example
₹1,00,000 loan at 12% for 12 months = ₹1,000 monthly interest + ₹1,00,000 at end
Best For
Business owners expecting lump sum payments or seasonal income
Overdraft Facility
How it Works
Use credit line as needed, pay interest only on used amount
Example
₹1,00,000 limit, use ₹50,000 for 6 months = Pay interest only on ₹50,000
Best For
Frequent borrowers who need flexible access to funds
Important Disclaimer
This calculator provides estimates based on the information you provide. Actual loan terms, interest rates, and charges may vary between lenders and are subject to their approval process. Gold loan rates are subject to market conditions and lender policies. Please verify all details with your chosen lender before making any financial commitments. This tool is for informational purposes only and should not be considered as financial advice.