Gold loan is one of the quickest and easiest ways to get money in India. You simply pledge your gold jewelry or coins with a bank or NBFC, and they give you a loan based on the gold's value. The gold stays with the lender as security until you repay the loan, but you get the money immediately without lengthy documentation or income proof. This makes gold loans attractive for emergencies or short-term funding needs.
For FY 2025-26, gold loan interest rates typically range from 9-14% per annum, which is lower than personal loans (12-24%). Banks usually lend 60-75% of the gold's market value. So if you have gold worth ₹10 lakh, you might get ₹6-7.5 lakh as loan. The repayment tenure is flexible, usually ranging from 3 months to 3 years. The advantage is quick disbursal (sometimes same day), minimal paperwork, and no credit score requirements. However, if you don't repay, the lender can sell your gold to recover the loan.
Our gold loan calculator helps you determine how much loan you can get based on your gold's weight and purity, and what the EMI will be. You can compare gold loans with other options like personal loan EMI to see which is cheaper for your needs. Gold loans are better for short-term needs, while personal loans might be better for longer tenure or if you don't want to pledge gold. Always check the interest rate, processing fee, and valuation charges before finalizing.
Before taking a gold loan, make sure you have a repayment plan in place. While gold loans are easier to get, the interest accumulates quickly if you don't pay. Consider other sources first - like emergency fund from fixed deposits or liquid savings, or personal line of credit which doesn't require collateral. Gold loans should ideally be used only when you're confident you can repay within the tenure and don't have other options.
For gold loan regulations and borrower protection, check the Reserve Bank of India's lending guidelines at RBI lending regulations which explains loan-to-value ratios, interest rate caps, and borrower rights for gold loans.
LTV (Loan-to-Value) ratio is the percentage of gold value that can be borrowed. For example, if your gold is worth ₹1,00,000 and LTV is 75%, you can borrow ₹75,000.
This calculator provides estimates based on researched average gold loan criteria. Actual loan amounts can vary significantly between lenders based on gold purity verification, market conditions, and individual lender policies.
Gold purity, weight, current market price, lender's LTV policy, interest rates, loan tenure, and processing fees all affect your gold loan eligibility and terms.
Most lenders require minimum 18K purity (75% pure gold). Higher purity gold (22K, 24K) typically gets better LTV ratios and interest rates.
Gold loans are typically approved within 24-48 hours after gold verification. The process is faster than other loans as gold serves as collateral.
Yes, gold loans are secured loans where gold serves as collateral. Credit score requirements are typically lower compared to unsecured loans, but good credit score can help get better interest rates.