See how much you can borrow against your gold jewellery and what you will repay.
How gold loan amount is calculated
Lenders value only the net gold weight (stones, wax and lac are deducted) at a 22K rate based on recent market prices. Lower-purity gold is valued proportionally, so 18K gold gets 18/22 of the 22K rate. The loan is a percentage of this value, called the loan-to-value (LTV) ratio.
Loan = Net weight × (Karat ÷ 22) × 22K rate × LTV
LTV limits
RBI caps how much banks and NBFCs can lend against gold. The long-standing limit is 75% of the gold's value; RBI's 2025 gold-loan directions allow a higher LTV on small loans (up to 85% for loans up to ₹2.5 lakh). Lenders can choose to give less than the limit, and many value gold below the market rate, so the actual offer is often lower than this calculator shows.
Repayment options
- EMI: you pay principal and interest every month, like any loan.
- Bullet: you pay nothing monthly and repay the loan with all the interest at the end (usually within 12 months).
- Interest-only: you pay the interest every month and the principal at the end.
Want to know what your jewellery is worth to buy? Use the gold price calculator.
Frequently asked questions
How much gold loan can I get per gram?
Multiply the 22K gold rate by the LTV and adjust for purity. For example, at a 22K rate of ₹11,000 and 75% LTV, you can get up to about ₹8,250 per gram of 22K gold, or about ₹6,750 per gram of 18K gold. Lenders publish their own per-gram rate, which is often a little lower.
What is the maximum LTV for a gold loan?
RBI has long capped gold loans at 75% of the value of the gold. Its 2025 gold-loan directions allow up to 85% for small loans of up to ₹2.5 lakh, with lower limits for bigger loans. Lenders can offer less than the limit.
Is a gold loan better than a personal loan?
A gold loan is usually cheaper (about 9–18% a year versus 11–24% for personal loans), is approved within hours and does not need a high credit score. The risk is that the lender can auction your gold if you do not repay. For a short-term need with gold you own, it is often the cheaper option.
What happens if I do not repay my gold loan?
The lender will send reminders and notices, and then can auction your gold to recover the dues, returning any surplus to you. Missed payments also hurt your credit score. If you are struggling, ask the lender about renewing or part-paying before it reaches auction.
Which gold is not accepted for a gold loan?
Most lenders accept 18K to 22K jewellery. Many do not accept gold bars or bullion, and some limit gold coins to bank-sold coins of up to 50 grams. Stones, wax and other materials are deducted from the weight.