Gold Loan Calculator

Calculate gold loan amount and EMI

Frequently Asked Questions

How is gold loan amount calculated?

Gold loan amount is based on gold's weight, purity, and current market price. Lenders typically offer 60-75% of gold value (LTV ratio). Only 18-24 karat gold is accepted. Stones and making charges aren't considered.

What are the interest rates for gold loans?

Gold loan interest rates range from 7-15% per annum, lower than personal loans due to secured nature. Banks offer lower rates (7-10%), while NBFCs may charge 12-15%. Rate depends on loan amount and tenure.

What happens if I can't repay my gold loan?

If you default, the lender can auction your gold after due notice (typically 7 days). Any amount exceeding the loan is returned to you. Communicate with the lender early—restructuring or extension may be possible.

Is gold loan better than personal loan?

Gold loans offer lower interest rates (7-15% vs 10-24%), faster processing, and no credit score requirements. However, you risk losing your gold, and loan amount is limited to gold value. Choose based on your needs.

What is the maximum tenure for gold loans?

Gold loan tenures typically range from 7 days to 3 years. Some lenders offer up to 5 years. Shorter tenures have lower interest accumulation. Many borrowers use gold loans for short-term needs and repay within months.

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