Gold Loan Calculator (India)

Estimate the loan amount you can get against your gold or calculate the EMI for a specific loan amount.

Enter today's rate for 24 Karat gold.
Typically 70-80%, set by lender/RBI.

Gold Loan Calculator Overview

Purpose:

To estimate either the maximum loan amount available against gold in India or the monthly EMI for a desired gold loan amount.

Inputs:
  • Gold Weight (grams)
  • Gold Purity (Karat)
  • Current Gold Rate (₹ per gram of 24K)
  • LTV % (for Loan Amount calc)
  • Desired Loan Amount (₹) (for EMI calc)
  • Annual Interest Rate % (for EMI calc)
  • Loan Tenure (Months) (for EMI calc)
Output:

Either the Estimated Maximum Loan Amount (₹) or the Estimated Monthly EMI (₹).

Formulas:

1. Gold Value: `Weight * (Selected Karat / 24) * Rate_per_Gram_24K`

2. Max Loan Amount: `Gold Value * (LTV / 100)`

3. EMI: `P * r * (1+r)^n / ((1+r)^n - 1)`
P = Loan Amount, r = Monthly Interest Rate (Annual Rate / 12 / 100), n = Tenure in Months

Note: Lenders' valuation methods and applicable rates may vary.

Gold Loans in India: Quick Facts

How Gold Loans Work
  • You pledge gold ornaments or coins (usually 18K-24K purity) as collateral.
  • The lender (Bank or NBFC) verifies the gold's purity and weight.
  • They calculate the market value based on the current gold rate.
  • A loan amount up to a certain percentage (LTV) of the value is offered.
  • Interest is charged, and you repay in EMIs or sometimes as a lump sum.
  • Gold is returned upon full repayment.
Key Considerations
  • Interest Rates: Can vary widely (e.g., 7% to 25%+) depending on lender, loan amount, and tenure. Compare offers!
  • LTV Ratio: Usually capped by RBI (often 75%), but lenders might offer less.
  • Fees: Check for processing fees, valuation charges, late payment penalties, and prepayment charges.
  • Tenure: Typically ranges from a few months to 3 years, sometimes longer.
  • Repayment: Options include EMIs, interest-only payments, or bullet repayment (lump sum at end).

Gold loans are secured loans, often processed faster than unsecured loans, making them popular for urgent financial needs in the Philippines and India.

Frequently Asked Questions

You can choose to calculate either the maximum loan amount or the EMI. For Loan Amount: It calculates the gold's market value (Weight × Purity Factor × Rate per Gram) and applies the Loan-to-Value (LTV) percentage. For EMI: It uses the standard loan EMI formula based on the desired loan amount, interest rate, and tenure.

LTV is the maximum percentage of the gold's market value that a lender (bank or NBFC in India) will provide as a loan. The Reserve Bank of India (RBI) often sets limits (e.g., up to 75% or sometimes higher for specific periods). Lenders may offer slightly different LTVs.

Gold rates (per gram for 24K or 22K) fluctuate daily. You need to check reputable financial websites, news sources, or the websites of banks/NBFCs offering gold loans in India for the current rate. This calculator requires you to input the rate.

Use the purity of the gold items you intend to pledge. Common purities for jewelry in India are 22 Karat (91.6% pure) or 18 Karat (75% pure). Gold coins/bars are often 24 Karat (99.9% pure). The calculator adjusts value based on purity.

<b>No.</b> This calculator provides an *estimate*. The actual loan amount, interest rate, and EMI offered by a lender in India depend on their specific policies, valuation process, gold rate used on the day of loan application, applicable fees, and your eligibility. Always get quotes directly from lenders.

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