Gold Loan Calculator

RBI permits banks up to 75% LTV and NBFCs / HFCs up to 90% LTV (relaxed post-March 2023). The LTV is calculated as loan amount / assessed gold value × 100. Most banks cap at 70-75% to manage margin calls if gold prices fall.

Most gold loans are interest-only, with monthly interest and principal repayment at the end of tenure (bullet). Some banks offer EMI mode with both interest and part-principal each month. Per-day interest calculation is offered by fintech lenders, charging interest only for days the loan is outstanding.

Personal-use gold loan interest is not deductible. Gold loan taken for business is deductible under Section 37(1) against business income. Gold loan against agricultural land is non-deductible for most assessees. Calculator does not factor tax — only the loan math.

If the gold value falls and the loan outstanding crosses the permitted LTV, the lender issues a margin call — request to either top up the gold or part-repay the loan. Top-up at risk of forced sale of pledged gold for non-payment after notice period.

Lenders assess gold purity using XRF (X-ray fluorescence) or touchstone assay, and the loan is computed on net weight (gross weight minus deduction for stones) at the day’s gold rate. Calculator accepts the assessed value directly — your lender will give this at the time of pledging.

Yes — most lenders allow foreclosure with zero to 2% penalty on the outstanding principal. The pledged gold is released on full repayment and foreclosure charges (if any). Calculator does not factor foreclosure penalty — subtract from interest saved to evaluate.