Gold Loan Calculator

Your jewellery box, priced as collateral

A ₹3,00,000 gold loan at 12% over 2 years comes to a monthly EMI of ₹14,122, with total interest of ₹38,929 across 24 months — about 13% of the loan amount, a modest cost that reflects both the short tenure typical of gold loans and the security your gold gives the lender. How much you can actually borrow isn't arbitrary: RBI caps the loan-to-value ratio at 75% of your gold's assessed value, so the exact ceiling depends on the purity and weight of what you pledge, not just what the lender feels like offering.

EMI isn't the only repayment shape on offer

This calculator models the standard EMI structure, but gold loans often come with alternatives worth asking about before you sign: bullet repayment, where you service only the interest periodically and the principal comes due as a lump sum at the end, or interest-only servicing with flexible principal repayment. Many providers also allow prepayment whenever you have surplus cash, often without penalty — worth confirming up front if you expect to clear the loan early.

What's actually at stake if repayment slips

Because your gold is the collateral sitting with the lender, timely repayment isn't optional in the way it might feel with an unsecured loan — miss enough payments and the lender can auction the pledged gold to recover what's owed. Treat the EMI this calculator shows as a firm monthly commitment rather than a flexible estimate. When comparing lenders, the headline interest rate is only part of the picture: the per-gram valuation rate offered for your gold's specific purity, along with processing charges and valuation fees, together determine both how much you can actually borrow and your true effective cost of the loan.