Gold Loan Calculator
Key takeaways
- 100 g of 22-karat gold at ₹15,000.00 per 24K gram values at ₹13.75 L — 22/24ths of the pure-gold price.
- At 75% loan-to-value the lender advances ₹10.31 L and holds ₹3.44 L of the gold’s value back as margin — within the RBI’s 75% cap for a loan of that size.
- Pledging pure 24-karat gold of the same weight would value at ₹15.00 L and raise the eligible loan to ₹11.25 L — ₹93,750 more.
Loan-to-Value — the share of the gold’s value advanced as loan
The RBI caps gold-loan LTV by loan size: 85% up to ₹2.5 lakh, 80% up to ₹5 lakh, 75% above. This loan comes under the 75% cap.
About the Gold Loan Calculator
The Gold Loan Calculator works out how much a lender would advance against gold pledged as collateral, from the weight and purity of the gold, today's price for pure 24-karat gold, and the loan-to-value (LTV) ratio the lender applies. It sizes the loan the collateral supports — it does not price the borrowing.
Enter the total weight being pledged, its purity (24K, 22K or 18K — most Indian jewellery is 22K, not pure), the current price per gram of 24K gold, and the LTV percentage. Purity matters because a lender values impure gold in proportion to the pure gold in it: 22K is 22/24ths as valuable gram for gram as 24K, and 18K is 18/24ths, or three quarters.
"Gold value" is what the pledged metal is worth at the entered 24K price after that purity scaling. "Eligible loan amount" is the loan the LTV percentage supports against it. The donut splits the full gold value into the money advanced and the value the lender holds back as margin; the scale below places the LTV on a 0–100% axis, with the Reserve Bank of India's ceiling for a loan of that size marked as a named tick — since 1 April 2026, 85% up to ₹2.5 lakh, 80% up to ₹5 lakh and 75% above. The highest of those is why this page's LTV field stops at 85.
There is no interest rate and no tenure on this page, which is deliberate: the question it answers is how much the collateral supports, and answering it needs neither. That also means there is no repayment schedule here — for the EMI on a given amount, rate and tenure, use the EMI or Personal Loan calculator. A real lender's offer can also come in below this figure after valuation charges, appraisal deductions for stones and soldering, or a more conservative in-house LTV policy, so treat this as an upper-bound estimate rather than a quote.
Frequently asked questions
How is a gold loan amount calculated?
Gold value = Weight × Price per gram of 24K gold × (Purity ÷ 24). Eligible loan = Gold value × LTV ÷ 100. The purity factor converts the karat rating into a fraction of pure gold, and the LTV is the share of that value the lender is willing to advance.
What is the maximum LTV on a gold loan in India?
Since 1 April 2026 the RBI caps loan-to-value by the size of the loan: 85% of the pledged gold's value for loans up to ₹2.5 lakh, 80% above that up to ₹5 lakh, and 75% above ₹5 lakh. Before then it was a flat 75%. This page's LTV field stops at 85% and its scale marks the cap for the loan entered. Individual lenders often apply a lower internal limit, so entering a smaller LTV models a more conservative offer.
Why does purity change the loan amount?
Because a lender values the pure gold content, not the gross weight. 22-karat jewellery is 22 parts gold in 24, so it is worth 22/24 — about 91.67% — of the pure-gold price per gram. 18K is 18/24, or 75%. The same 100 grams therefore supports a noticeably smaller loan in 18K than in 24K.
Do lenders lend against gems and stones in jewellery?
Generally no. Lenders assess the gold content only, and appraisers deduct the weight of stones, enamel and soldering before valuing the piece. Enter the estimated net gold weight rather than the gross weight of the ornament if the two differ, or the eligible amount here will come out higher than an appraiser would allow.
Why is there no interest rate or EMI on this page?
Because eligibility and repayment are separate questions, and the app this page mirrors keeps them separate too. The collateral determines how much can be borrowed; the rate and tenure determine what repaying it costs. Once you know the amount, the EMI Calculator or Personal Loan Calculator on this site computes the repayment side.
What happens if the gold price falls during the loan?
The loan-to-value ratio rises, because the same outstanding amount is now secured by less value. Lenders monitor that and may call for part-prepayment or additional collateral to restore the ratio, and the loan agreement sets out what happens if it is not restored. This calculator computes the position at the price you enter and does not model price movement during the loan.
Disclaimer: This calculator is for information and education only. It is not investment advice and not a recommendation, and it is not a loan offer. The lender decides the actual interest rate, EMI, fees and eligibility, and whether insurance cover is required, and a floating rate can change during the loan. Charges you did not enter are not included. RBI caps the loan-to-value ratio and sets the reference price used to value the gold, and the lender assesses its weight and purity. Every figure is computed solely by applying the formula and assumptions stated on this page to the inputs you entered.