Gold Loan EMI Calculator
Calculate gold loan eligibility (75% LTV), monthly EMI, and total interest. Includes 2026 rates from SBI (~9-12%), HDFC (~10-13%), Muthoot Finance, Manappuram, and Bajaj Finance.
Details
Result
Monthly EMI
₹24,857
Eligible Loan Amount
₹2,81,250
Total Gold Value
₹3,75,000
Total Interest
₹17,038
Total Repayment
₹2,98,288
For estimation only. Not professional financial, tax, or legal advice. Consult a qualified advisor before making decisions. Full disclaimer.
What is a gold loan?
A gold loan is a secured loan where you pledge gold ornaments or coins as collateral. The bank gives you up to 75% of the gold's value (the LTV cap, set by RBI). You pay interest monthly or at the end. Once you repay the principal + interest, you get your gold back.
Why people pick gold loans over personal loans
- Lower interest rate: 9-15% (vs 11-22% for personal loans).
- No income proof needed: Just KYC + gold valuation. Self-employed and homemakers love this.
- Same-day disbursal: Most banks/NBFCs do it in 30-60 minutes.
- No CIBIL impact: Loan is fully secured, so your CIBIL score doesn't need to be high.
- Flexible repayment: EMI, or interest-only, or bullet payment at end.
2026 rates and LTV across major lenders
- SBI: 9.0-11.5% per year, LTV up to 75%, processing fee 0.5%.
- HDFC Bank: 10-13%, LTV 75%, processing fee ₹450-1500 flat.
- Muthoot Finance: 11-22%, LTV 75%, fast disbursal, ₹0-100 processing.
- Manappuram Finance: 11-24%, LTV 75%, similar.
- Bajaj Finserv: 11-19%, doorstep gold valuation.
How banks decide your gold's value
The bank weighs your gold and tests purity (22-karat gold = 91.6% pure; 24-karat = pure). They use the day's RBI gold price, not the price you paid. For 18-karat gold, you get 75% LTV on (gold weight × current 18kt price), not 24kt — many people get confused here. Always check the karat-specific value before accepting the loan.
The biggest risk
If gold prices drop sharply or you miss EMIs, the lender can auction your goldafter a notice period (15-30 days). NBFCs auction faster than banks. Don't pledge gold you can't bear to lose. Always check the loan agreement's auction clause.
When NOT to take a gold loan
- You're funding consumption (vacation, wedding) — gold is for emergencies.
- Tenure is > 2 years — interest accumulates fast at 12%+.
- You can get a personal loan at 11-13% (with good CIBIL) — comparable rate, no auction risk.
Compare with our personal loan EMI calculator and loan against property calculator to pick the right option.