Gold Loan Calculator India 2025-26 Loan Amount on Gold per Gram · Muthoot, SBI, HDFC, Manappuram Rate Presets · EMI & Bullet Repayment

Updated: 17 Jun 2026  |  RBI LTV 75% norms  |  24K · 22K · 20K · 18K gold purity  |  EMI · Bullet · Overdraft modes

🥇 Today’s Gold Rate (24K, per gram): ₹ /gram
Approx. MCX rate — update to today’s price for accuracy

Gold Purity:

Repayment Type:

20 grams
5g500g
75%
50%75% (RBI max)
9.50%
7%29%
12 months
3 mo36 mo

Lender rate presets (FY 2025-26):

Gold Value Breakdown

Gold weight20 g
Purity factor91.6% (22K)
Pure gold weight18.32 g
Market value₹1,83,200

Eligible Loan Amount

₹1,37,400

75% LTV on ₹1,83,200 gold value

Monthly EMI

₹12,147

principal + interest

Total Interest

₹8,361

6.1% of loan

Quick Reference — Loan per gram

EMI Repayment Schedule

Month Payment (₹) Principal (₹) Interest (₹) Balance (₹)

How Gold Loan Amount is Calculated in India — LTV, Purity, RBI Rules & Repayment Methods

Gold loans are one of India’s oldest and fastest credit products — approved in minutes, no income proof required, and secured by your gold jewellery or coins. In FY 2025-26, India’s gold loan market is worth over ₹8 lakh crore, led by Muthoot Finance, Manappuram Gold, SBI, and HDFC Bank. The loan amount is governed by RBI’s LTV (Loan-to-Value) norms — banks can lend up to 75% of gold’s market value; NBFCs follow the same cap post-2021.

Gold Loan Calculation — 3-Step Formula

Step 1: Pure Gold Value = Weight (g) × Purity % × 24K Rate (₹/g)
Step 2: Loan Amount = Pure Gold Value × LTV % (max 75% per RBI)
Step 3: Monthly Interest = Loan Amount × (Annual Rate ÷ 12 ÷ 100)

Purity & Loan Per Gram (at ₹10,000/g 24K rate)

PurityValue/gramLoan/gram (75%)
24K (99.9%)₹9,990₹7,493
22K (91.6%) ★₹9,160₹6,870
20K (83.3%)₹8,330₹6,248
18K (75.0%)₹7,500₹5,625

3 Repayment Methods Explained

EMI: Equal monthly instalments covering both principal and interest — lowest total interest, best for salaried borrowers with regular income.
Bullet / Term Loan: Pay only monthly interest during tenure; repay full principal at end. Best for farmers, businessmen with seasonal/irregular income. Higher total interest than EMI.
Overdraft / OD: Lender sets a credit limit against your gold; you draw and repay as needed, paying interest only on amount used. Most flexible — ideal for working capital.
⚠️ RBI Rules You Must Know: (1) Max LTV: 75% for both banks and NBFCs (RBI circular 2021). (2) Minimum gold purity: 18K (most lenders). (3) Gold coins accepted only up to 50g per customer (RBI rule). (4) Lenders must conduct gold valuation by a certified appraiser. (5) If you default: lender must give 15-day notice before auctioning your gold. (6) Bullet loans are not technically EMI — confirm the repayment schedule in writing before signing.

3 Real Indian Gold Loan Examples — Emergency, Agriculture & Business Working Capital

Practical gold loan scenarios with actual FY 2025-26 rates and RBI-compliant LTV. All amounts in ₹. 24K gold rate assumed ₹10,000/gram.

1

Lakshmi Devi — Medical Emergency, 20g 22K Gold, Muthoot Finance, Chennai 🏥

Homemaker, husband hospitalised suddenly. Needed ₹1L within 2 hours. No income proof, no CIBIL score — pledged 20g 22K gold chain.

Gold pledged
20g · 22K
Gold value ₹1,83,200
Loan (75% LTV)
₹1,37,400
Disbursed in 30 min
Interest rate
22% p.a.
Muthoot Finance
Bullet · 6 months
₹2,519/mo
interest only
Analysis: Monthly interest (bullet) = ₹1,37,400 × 22% ÷ 12 = ₹2,519. Total interest for 6 months = ₹15,114. At end of 6 months, Lakshmi repays ₹1,37,400 principal. Total cost: ₹1,52,514. Muthoot’s 22% rate is high vs banks (SBI 8.5%) but she got the money in 30 minutes with zero documents beyond Aadhaar and gold. Alternative SBI gold loan at 8.5%: Monthly interest ₹971, total 6-month interest ₹5,828 — ₹9,286 cheaper. PSU banks take 2–3 days vs Muthoot’s 30 minutes. In genuine emergencies, the speed premium is worth it; for planned needs, always choose banks.
2

Ramaiah Gowda — Kharif Crop Input Loan, 50g 22K Gold, SBI, Tumakuru, Karnataka 🌾

Farmer needed ₹3.5L for seeds, fertiliser, and irrigation ahead of June sowing. Pledged 50g gold chain at SBI branch. Expected harvest income in October.

Gold pledged
50g · 22K
Gold value ₹4,58,000
Loan (75% LTV)
₹3,43,500
SBI Gold Loan
Interest rate
8.50% p.a.
SBI (lowest in mkt)
Bullet · 5 months
₹2,432/mo
interest only
Agricultural gold loan advantages: Ramaiah got ₹3,43,500 at 8.5% p.a. Monthly interest = ₹2,432. Total 5-month interest = ₹12,160 before October harvest. Gold loan vs KCC (Kisan Credit Card) comparison: KCC rate 7% (subsidised) but requires land records, crop insurance, and 2-week processing. Gold loan sanctioned in 2 hours with just gold + Aadhaar. For farmers without land records (tenant farmers), gold loan is often the only formal credit option. RBI note: SBI and other PSU banks offer preferential rates (7–9%) for agricultural gold loans under the priority sector lending (PSL) scheme. Ask specifically for “agricultural gold loan” rate — it’s often 1–2% below the standard gold loan rate.
3

Meera Pillai — Business Working Capital, 100g 22K Gold OD, HDFC Bank, Kochi 💼

Saree retailer with seasonal cash flow gaps. Pledged 100g gold chain for overdraft facility — draws only what’s needed, pays interest only on drawn amount.

Gold pledged
100g · 22K
Gold value ₹9,16,000
OD Limit (75%)
₹6,87,000
HDFC Gold OD
Interest rate
11% p.a.
HDFC Bank Gold OD
Avg utilisation
₹2,50,000
~₹2,292/mo interest
Overdraft (OD) gold loan advantage: Meera has ₹6.87L OD limit but typically draws only ₹2.5L for restocking inventory before Onam/Vishu festivals. Interest = ₹2,50,000 × 11% ÷ 12 = ₹2,292/month on drawn amount (not on full ₹6.87L limit). She repays within 45 days when festival sales come in — annual interest cost ≈ ₹10,000 vs credit card EMI at 24–36% for same purpose. Gold OD is the smartest working capital tool for Indian retailers, traders, and small business owners who have gold and need flexible credit. Key advantage over bullet loan: no monthly interest outgo when OD is repaid quickly; interest accrues daily on outstanding balance.

5 Expert Tips to Get the Best Gold Loan Deal in India — Rate, Safety & Auction Risk

Used by experienced borrowers and financial advisers to minimise gold loan cost and avoid common pitfalls.

01

Bank vs NBFC Rate Gap is 10–14% — Choose Based on Speed vs Cost Priority

SBI offers gold loans from 8.5% p.a.; Muthoot Finance charges 22–24% p.a. — the same ₹1 lakh loan for 12 months costs ₹8,500 at SBI vs ₹22,000 at Muthoot. The 13.5% rate gap is justified only by speed: Muthoot/Manappuram disburse in 15–30 minutes with just Aadhaar + PAN; SBI takes 1–3 working days. Rule of thumb — if you need money within 24 hours and the interest premium is less than your loss from not having the money (business deal, medical emergency), choose NBFC. For any planned need, always go to PSU banks first: SBI, Union Bank, Canara Bank all offer competitive gold loan rates of 8.5–9.5%.

02

Always Get Your Gold Independently Valued Before Pledging — Lenders Often Under-Value

Gold loan lenders employ their own appraisers who sometimes value gold below market rate — especially for older jewellery with meenakari, stone settings, or kaarigaree (making charges) which are excluded from valuation. The lender values only the pure gold content, not any craft value. Before pledging: (1) Know the exact purity from the BIS hallmark (22K = “BIS 916”, 18K = “BIS 750”); (2) Check today’s 24K MCX rate and calculate the pure gold value yourself; (3) Compare the lender’s appraised value against your calculation — if they’re more than 5% lower, ask for a revaluation. Hallmarked gold (BIS certified) almost always gets better valuations than non-hallmarked jewellery. Since 2022, BIS hallmarking is mandatory for gold jewellery above 2g sold by Indian jewellers.

03

Never Miss Interest Payments — Gold Auction Happens After Just 90–180 Days of Default

Gold loans are secured — lenders can and do auction pledged gold upon default. RBI rules: lender must send written notice and give at least 15 days before auction. However, NBFC gold loans have much shorter grace periods than home or personal loans. Muthoot, Manappuram, and IIFL have large auction operations for defaulted gold. If you’re struggling with repayment: (1) Immediately contact the lender — most allow a 1–3 month extension with additional interest; (2) Top up the loan if gold price has risen (you may get additional disbursement without new pledging); (3) Part-release gold by repaying proportionally — most lenders allow you to reclaim some gold once you repay a portion of the loan. Never ignore a default notice — auction cannot be undone once completed.

04

Gold Loan vs Personal Loan vs Loan Against FD — Know Which is Cheapest for Your Profile

Three quick-credit options compared for ₹3 lakh / 12 months: Gold loan (SBI 8.5%): Total interest ₹25,500, approved in 1 day, no income proof needed, gold at risk. Personal loan (12–16%, good CIBIL): Total interest ₹45,000–₹62,000, approved in 2–5 days, no asset at risk. Loan against FD (FD rate + 1–2%): If you have a ₹5L FD at 7.5%, loan rate = 8.5–9.5%, total interest ₹25,500–₹28,500, fastest approval (same day). Decision framework: Have FD? → Loan against FD (no gold risk, similar rate). Have gold + urgent need? → Gold loan from PSU bank. Have no assets + good CIBIL? → Personal loan. Have gold + highest urgency? → NBFC gold loan despite higher rate.

05

Rising Gold Prices Are Your Advantage — Top-Up Your Gold Loan When MCX Rate Increases

Gold prices in India have risen from ₹5,500/gram (24K, 2020) to ₹10,000+/gram (2025–26) — an 80%+ increase in 5 years. This gives existing gold loan borrowers a significant advantage: if your gold value has risen since the original loan, you can request a gold loan top-up from most lenders without pledging additional gold. The lender re-values your existing pledged gold at current prices; if the LTV headroom allows, they disburse additional funds. Example: 50g gold pledged in 2023 at ₹7,000/g = ₹3,50,000 value, loan = ₹2,62,500 (75%). In 2025 at ₹10,000/g, same gold value = ₹5,00,000 (approx for 22K). New eligible loan = ₹3,75,000. Top-up available = ₹3,75,000 − ₹2,62,500 = ₹1,12,500 without pledging any additional gold. Always request a top-up before seeking a fresh loan from a different lender — saves documentation and processing time.

Frequently Asked Questions — Gold Loan Calculator, Rates, RBI Rules & Muthoot vs Bank Comparison India

What is the gold loan amount per gram in India 2025-26?+
At ₹10,000/g (24K, Jun 2026) and 75% LTV: 22K → ₹6,870/gram; 24K → ₹7,493/g; 20K → ₹6,248/g; 18K → ₹5,625/g. Enter today's MCX gold rate in the calculator above to get the exact current figure for your gold weight and purity.
What are gold loan interest rates in India 2025-26?+
SBI 8.5–10%; Union Bank 8.6–9%; HDFC Bank 11–16%; ICICI Bank 11–16%; IIFL Gold 9.5–24%; Manappuram 12–29%; Muthoot Finance 14–26%. PSU banks are cheapest; NBFCs are fastest. Choose based on speed vs cost trade-off.
What is the maximum LTV for gold loan in India?+
RBI mandates maximum LTV of 75% for both banks and NBFCs (2021 circular). No lender regulated by RBI can legally lend more than 75% of the gold's appraised value. Unregistered moneylenders who offer 90%+ LTV are operating outside RBI guidelines — avoid them.
What documents are needed for gold loan?+
Only: Aadhaar card + PAN card + passport photo + the physical gold. No income proof, no salary slip, no CIBIL check, no ITR. India's most documentation-light credit product — Muthoot and Manappuram approve in 30 minutes with just these documents.
What happens if I cannot repay my gold loan?+
Lender sends 15-day written auction notice (RBI mandate) after 90–180 days of default. Gold is auctioned at current market price. Surplus (if any) is returned to you; shortfall remains your liability. Act immediately if struggling — most lenders allow 1–3 month extensions with extra interest. Never ignore a default notice.
Gold loan vs personal loan — which is better in India?+
Gold loan: lower rate (8.5–12%), no CIBIL needed, fast, but gold at risk. Personal loan: higher rate (12–24%), needs good CIBIL, no asset pledged. Choose gold loan if you have gold and need low-cost quick funds. Choose personal loan if you have 740+ CIBIL and don't want to risk your jewellery.
Can I take a gold loan without income proof or CIBIL score?+
Yes — gold is the collateral, so no income proof or CIBIL is needed. Ideal for homemakers, farmers, retirees, self-employed individuals, and first-time credit users. Even borrowers with CIBIL below 600 can get gold loans from banks and NBFCs.
How much loan can I get on 10 grams of gold?+
At ₹10,000/g (24K, Jun 2026) and 75% LTV: 10g 22K gold value = ₹91,600; loan = ₹68,700. 10g 24K = ₹1L value; loan = ₹75,000. 10g 18K = ₹75,000 value; loan = ₹56,250. Enter today's MCX rate in the calculator for the current exact figure.
What is the difference between bullet and EMI gold loan repayment?+
EMI: Equal monthly payment (principal + interest). Lower total interest. Best for salaried borrowers. Bullet: Pay only interest monthly; lump principal at end. Higher total interest (81% more on a 12-month loan). Best for seasonal income earners (farmers, traders). Switch between modes in the calculator above to compare total cost.
Is gold loan interest tax deductible in India?+
Only for specific uses: Home renovation/purchase → Section 24(b) up to ₹2L/year; Business use → fully deductible as business expense; Agriculture → deductible against farm income. Personal use (medical, wedding, consumer) → NOT deductible. Keep bank statements showing fund transfer to the specific purpose for documentation.
Can I foreclose a gold loan early without penalty?+
PSU banks (SBI, Union Bank): Zero foreclosure penalty after 3–6 months. NBFCs (Muthoot, Manappuram): 1–2% charge if closed within lock-in period. Ask specifically for zero-foreclosure schemes when taking the loan — many lenders offer them. Early closure always saves interest especially on high-rate NBFC loans.
Muthoot Finance vs SBI gold loan — which is better?+
SBI: Rate 8.5–10%, disbursement 1–3 days, cheapest in market. On ₹2L loan for 12 months: interest ₹17,000. Muthoot: Rate 14–26%, disbursement 30 minutes, 3,500+ branches open late. On ₹2L loan for 12 months: interest ₹28,000–₹52,000. Choose Muthoot for genuine emergencies; SBI for all planned needs — you save ₹11,000–₹35,000 on a ₹2L loan.
What quality of gold is accepted for gold loan in India?+
Accepted: 18K–24K jewellery (BIS hallmarked preferred); bank-sold gold coins (up to 50g per RBI). Not accepted: Silver, platinum, diamond jewellery; gold bars from unregistered sources; broken/heavily stone-set pieces valued conservatively. BIS hallmarked gold (mandatory since Jun 2021 for new jewellery) always gets better valuations.
Gold loan vs loan against FD — which is cheaper?+
Loan against FD (at FD rate + 1–2%): If FD earns 7.5%, loan costs 8.5–9.5% — same as gold loan, but FD continues earning interest, making effective cost only ~1%. Zero asset risk, same-day approval. Gold loan: similar rate but gold is pledged. Verdict: Loan against FD is always better if you have an FD — same cost, zero gold risk, FD keeps earning.
What is a gold loan overdraft facility and who should use it?+
Gold OD is a revolving credit line against pledged gold — draw as needed, pay interest only on amount used. Ideal for retailers, traders, and businesspeople with variable cash needs. Far cheaper than credit card EMI (11% OD vs 36% CC). Available at SBI, HDFC, Canara, and most NBFCs.
Can NRIs take gold loans in India?+
Yes, with conditions. Gold must be physically pledged in India; repayment from NRE/NRO account or by a resident co-applicant/PoA holder. Most PSU banks allow NRI gold loans. Very common in Kerala and Tamil Nadu where NRI families hold significant ancestral gold jewellery.
Is gold safe with the lender during the loan period?+
Yes, with RBI-regulated entities. Lenders must store gold in insured vaults (RBI mandate). Major lenders carry comprehensive vault insurance. On repayment, you receive exactly the same items. Risk only with unregistered moneylenders — always verify NBFC registration on RBI's list at rbi.org.in before pledging.
Is a gold loan better than selling gold in India?+
Almost always yes — unless you never intend to buy gold back. Selling gold: permanent loss of asset; jeweller pays 5–15% below market; losing charges/craft value. Gold loan: retain ownership, recover gold on repayment, benefit from any price rise during loan period. Interest cost (8.5–12%/year at banks) is just the "rental" for borrowing against your gold.
How can I get the maximum loan amount from my gold?+
(1) Use BIS hallmarked jewellery — gets most accurate valuation; (2) Choose 22K or 24K jewellery over 18K (higher purity = higher value per gram); (3) Request XRF testing if branch uses older touchstone method — XRF is more accurate; (4) Apply when MCX gold price is high; (5) Request maximum 75% LTV — some conservative branches offer only 65–70%; (6) Remove stones before valuation — stones are excluded and heavy settings reduce gold weight assessed.
What is the best gold loan scheme in India for 2025-26?+
By use case: Emergency (< 1 hour): Muthoot/Manappuram (14–26%, fast); Planned/lowest cost: SBI gold loan (8.5–9.5%); Agricultural: SBI/Union Bank Agri Gold Loan (7–8.5% priority sector rate); Working capital: HDFC/SBI Gold OD (11–13%, flexible); Festival season: Watch for Navratri/Diwali gold loan offers with zero processing fee from all major lenders.

Related Calculators

🏦
EMI Calculator
Home/Personal/Car/Business
 📅
Loan Amortisation
Month-by-month breakdown
 🚙
Used Car Loan EMI
Pre-owned car LTV
 🛵
Two-Wheeler Loan EMI
Bike & scooter loans
 🪜
FD Ladder Calculator
Staggered FD strategy
 📮
Post Office FD
POTD, SCSS rates

Disclaimer — Gold Loan Calculator (CalcWise Finance)

The gold loan amounts, interest calculations, and lender rates provided by this calculator are indicative and for educational purposes only. Gold rates used are approximate MCX market rates — actual lender valuation may differ by 2–8% based on their internal appraisal methodology. CalcWise Finance is not a bank, NBFC, gold loan broker, or RBI-registered lender.

Actual loan amount, interest rate, processing fees, and LTV offered will depend on the lender's gold valuation, your KYC documents, and prevailing gold prices at the time of pledge. RBI's LTV norms, gold loan regulations, and lender policies referenced are accurate as of June 2026 and subject to change. Always verify with your chosen lender before pledging gold.

Gold loans carry the risk of your pledged jewellery being auctioned in case of default. Borrow only from RBI-regulated banks or NBFC-MFIs. Regulatory authorities: Gold loans are regulated by the Reserve Bank of India — rbi.org.in. Consumer grievance: RBI CMS — cms.rbi.org.in. For gold ETF and Sovereign Gold Bond information: SEBI — sebi.gov.in and AMFI India — amfiindia.com. Investor grievance: SEBI SCORES — scores.sebi.gov.in. Last Updated: 17 Jun 2026.