Gold Loan Calculator
Estimate how much you can borrow against gold jewellery under the RBI's loan-to-value limits, and the interest due.
About the Gold Loan Calculator
Under the RBI's Lending Against Gold and Silver Collateral Directions, 2025, the maximum loan-to-value for consumption loans is 85% for loans up to ₹2.5 lakh, 80% above ₹2.5 lakh to ₹5 lakh and 75% above ₹5 lakh. Only the gold's intrinsic value counts, not making charges or stones. Bullet-repayment loans (interest and principal paid together at the end) can run for at most 12 months.
The formula
Gold value = grams × 24K price × (karat ÷ 24); loan = value × LTV
Worked example
Example: Maximum loan = ₹5,29,375
- Inputs: Gold weight: 55 g; Purity: 22K; Today's 24K gold price per gram: 14,000 ₹ per g; Interest rate: 10%; Tenure: 13 months.
- Formula: Gold value = grams × 24K price × (karat ÷ 24); loan = value × LTV
- Result: Maximum loan = ₹5,29,375
- Loan-to-value: 75%
Questions people ask
Is the gold price fixed?
Lenders value it at an average of recent prices; check the lender's daily rate.
What happens if gold prices fall?
The lender may ask for more gold or part repayment to keep within the LTV limit.