About this calculator
A gold loan is secured by jewellery, so lenders can approve it in under an hour and at a lower rate than an unsecured loan. Two repayment structures exist: a regular EMI, or interest-only payments with the principal paid at maturity (a bullet or balloon repayment).
The calculator above models the EMI version, which is cheaper over the same tenure because the principal falls every month. If your lender offers only interest-servicing, compare that total against the EMI total before deciding.
How to use it
- Enter the amount you plan to borrow — not the asset price, unless you are financing the whole thing.
- Set the annual interest rate your lender has quoted, and the tenure in months.
- Read the monthly EMI, then check the amortisation table to see how much of it is interest in year one.
How the EMI is worked out
The calculator uses the standard reducing-balance formula used by every bank in India:
EMI = [P × r × (1 + r)n] ÷ [(1 + r)n − 1]
where P is the principal, r is the monthly rate (annual rate ÷ 12 ÷ 100) and n is the tenure in months. In Excel the same answer comes from =PMT(rate/12, months, -amount).
What decides your interest rate
- Loan-to-value cap: RBI limits lending to 75% of the gold's value.
- Purity and weight assessment determine the sanctioned amount.
- Bank gold loans are usually 9.5–13%; non-banking gold loan companies can be higher.
- Tenure: most gold loans run 6–24 months and can be renewed.
- Bullet repayment costs more interest overall than an EMI on the same principal.
Indicative interest rates
Indicative ranges compiled 28 October 2026. Rates change with the repo rate and your credit profile — always confirm with the lender before deciding.
| Lender | Indicative rate | Typical tenure |
|---|---|---|
| Canara Bank | 9.25% – 11.50% | Up to 12 months |
| Federal Bank | 9.50% – 12.50% | Up to 12 months |
| South Indian Bank | 10.00% – 13.00% | Up to 12 months |
| Muthoot / Manappuram | 12.00% – 24.00% | 3 – 12 months |
What an extra ₹2,000 a month would do
Same loan, same rate, one extra payment every month. This is the cheapest way to cut the total cost of any loan.
| Scenario | Monthly payment | Loan closes in | Total interest |
|---|
Floating-rate home loans to individuals carry no prepayment penalty in India. Personal and car loans often charge 2–5% of the outstanding amount — check before you prepay.
Year-wise amortisation schedule
How the loan actually unwinds: the interest share falls every year while the principal share rises.
Show the year-by-year break-up
| Year | Principal paid | Interest paid | Balance left |
|---|
Frequently asked questions
Is a gold loan cheaper than a personal loan?
Yes, usually by 3–8 percentage points, because the loan is secured. The trade-off is that you pledge the gold and lose its custody for the tenure.
What is a bullet repayment gold loan?
You pay interest monthly or at maturity and repay the whole principal at the end. It keeps the monthly outgo low but costs more interest than an EMI because the principal never reduces.
How much loan can I get for 10 grams of gold?
At a gold rate of about ₹7,500 per gram for 22-carat, 10 grams is worth roughly ₹75,000 and RBI rules allow up to 75% of that — around ₹56,000.
What happens if I cannot repay on time?
The lender auctions the pledged gold after due notice. Talk to the lender before the due date; most allow renewal or partial repayment.
Do gold loans affect my credit score?
Repayment history is reported to credit bureaus by most organised lenders, so timely repayment helps and default hurts.
Can I prepay a gold loan?
Yes, most lenders allow it with no or minimal charges, and you get the gold back once the account is closed.
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Before you apply
Get the sanction letter and check three things: whether the rate is fixed or floating, what the processing fee is, and whether part-prepayment carries a charge. Those three lines decide the real cost of the loan, more than the headline rate does.
This page is updated when rate ranges change. Last verified 28 October 2026.