Calculate your gold loan EMI and total interest, and see how much you can borrow against your gold at the standard 75% loan-to-value cap.
A gold loan is secured against your gold jewellery or coins, which is why it typically carries a much lower interest rate (8-15% for banks) than an unsecured personal loan. RBI caps the Loan-to-Value ratio at 75% — meaning if your gold is valued at ₹5 lakh, you can borrow up to ₹3.75 lakh. The EMI is calculated the same reducing-balance way as any other loan, though many lenders also offer "bullet repayment" schemes where you pay only interest monthly and the principal at the end.
RBI caps the Loan-to-Value (LTV) ratio at 75% of the gold's value for banks and NBFCs, meaning you can typically borrow up to 75% of your gold's assessed market value.
If you default, the lender has the right to auction your pledged gold to recover the outstanding amount, after providing notice as per RBI guidelines. This is why gold loans carry lower interest rates than unsecured personal loans — the lender's risk is lower.
Yes, many gold loan schemes (called bullet repayment) let you pay only interest periodically and repay the full principal at the end of the tenure, unlike a standard EMI. This calculator assumes standard EMI repayment; check with your lender for bullet repayment terms.