Gold Loan Calculator
Free gold loan calculator based on weight, purity, and rate. Get maximum eligible loan, monthly EMI, LTV ratio, total interest, and repayment breakdown with charts.
About This Calculator
Gold loans are secured loans where your gold jewelry or coins serve as collateral. They offer quick approval, lower interest rates than personal loans, and no income proof requirements.
Our calculator helps you determine the maximum loan amount based on your gold's weight, purity, and current market rates, along with EMI calculations for different tenure options.
Gold Loan Features:
- Loan Amount: Up to 75% of gold value (LTV ratio)
- Interest Rates: 10-16% per annum
- Tenure: 6 months to 3 years typically
- Processing: Quick approval within hours
- Documentation: Minimal paperwork required
Gold Purity and Valuation:
- 24K Gold: 99.9% pure (highest value)
- 22K Gold: 91.6% pure (most common jewelry)
- 20K Gold: 83.3% pure
- 18K Gold: 75% pure (lowest acceptable purity)
Gold Loan Process:
- Gold Assessment: Weight and purity verification
- Valuation: Based on current market rates
- Loan Approval: Up to 75% of assessed value
- Documentation: KYC and loan agreement
- Disbursal: Cash or bank transfer
Gold Loan Benefits:
- Quick Processing: Approval within 30 minutes
- No Income Proof: Gold serves as security
- Lower Interest: Rates lower than personal loans
- Flexible Repayment: EMI or bullet payment options
- Safe Storage: Gold stored in bank lockers
Repayment Options:
- EMI: Monthly installments of principal + interest
- Interest-only: Pay interest monthly, principal at maturity
- Bullet Payment: Pay entire amount at maturity
- Partial Payment: Reduce loan amount anytime
Features:
- Calculate maximum loan amount based on gold value
- Support for different gold purities (18K to 24K)
- EMI calculation for various tenures
- Loan-to-value ratio analysis
- Visual comparison of gold value vs loan amount
Frequently Asked Questions
What is a gold loan?
Gold loan is a secured loan where you pledge your gold jewelry or coins as collateral to borrow money from a bank or financial institution. The loan amount is based on the value of your gold, typically up to 75% of its market value. Gold loans offer quick processing, lower interest rates than personal loans, and don't require income proof.
How much gold loan can I get?
The loan amount depends on the weight and purity of your gold and current market rates. Banks typically offer up to 75% of the gold's value (LTV ratio). For example, if your gold is worth ₹1 lakh, you can get a loan of up to ₹75,000. Higher purity gold (22K or 24K) gets better valuation than 18K gold.
What is the interest rate on gold loan?
Gold loan interest rates in India range from 10% to 16% per annum. Public sector banks typically offer lower rates (10-12%), while NBFCs may charge 12-16%. Rates depend on the lender, loan tenure, and loan amount. Gold loans are cheaper than personal loans because they are secured by collateral.
How is gold valued for loan?
Gold is valued based on its weight and purity. The lender assesses the gold, determines its purity (24K, 22K, 18K), and weighs it. The value is calculated using current market rates. Only the gold content is valued - making charges, stones, or other materials in jewelry are not considered. Lenders typically use 22K purity as standard for valuation.
Is gold loan better than personal loan?
Gold loans are generally better if you have gold to pledge because: 1) Lower interest rates (10-16% vs 11-24%), 2) No income proof or credit score required, 3) Faster processing (hours vs days), 4) Lower processing fees. However, you risk losing your gold if you default. Personal loans are unsecured but have stricter eligibility and higher rates.
How quickly can I get a gold loan?
Gold loans are processed very quickly - often within 30 minutes to a few hours. Since the gold serves as collateral, lenders don't need extensive documentation or credit checks. You walk in with your gold and KYC documents, and walk out with cash or bank transfer. This makes gold loans ideal for urgent financial needs.
What documents are needed for gold loan?
Gold loans require minimal documentation: 1) Identity proof (Aadhaar, PAN, Passport), 2) Address proof, 3) Recent passport-size photographs. Unlike other loans, you don't need income proof, bank statements, or ITR. Some lenders may ask for additional documents for loans above certain amounts. The process is designed to be quick and hassle-free.
Can I get my gold back after repaying the loan?
Yes, once you repay the loan amount along with any accrued interest, your pledged gold is returned to you immediately. The gold is stored securely in bank lockers during the loan period. Ensure you get a receipt when depositing gold and verify the weight and condition when it's returned.
What happens if I don't repay my gold loan?
If you fail to repay, the lender will send reminders and may charge late payment fees. After a grace period (usually 3-6 months), the lender has the right to auction your gold to recover the loan amount. It's crucial to communicate with your lender if facing repayment difficulties - they may offer extensions or restructuring options.
Is my gold safe with the lender?
Yes, banks and NBFCs store pledged gold in secure vaults with insurance coverage. Reputable lenders take complete responsibility for the safety of your gold. However, it's advisable to take gold loan only from reputed banks or registered NBFCs. Avoid unregistered money lenders who may not have proper security measures.