Secured borrowing • Gold value and repayment
Gold Loan Calculator
Estimate pure-gold-equivalent value, an indicative loan amount and either reducing-balance EMI or simplified bullet repayment. The lender’s physical appraisal and current policy determine the actual sanction.
Enter gold and loan assumptions
For example, 22-karat gold is approximately 91.6% pure.
Enter the current percentage you want to test; no regulatory limit is hard-coded.
Monthly EMI amortization statement
This table appears only for the EMI method.
Calculation method
Pure-gold-equivalent value = weight × purity ÷ 100 × gold rate
Estimated loan = adjusted value × LTV ÷ 100
Fee = estimated loan × fee rate ÷ 100
EMI uses the standard monthly annuity formula. Bullet mode uses simple interest: loan × annual rate × months ÷ 1,200.
Before using the estimate
- Weigh only eligible ornaments.
- Use a verified 24-karat reference rate.
- Confirm how purity is tested.
- Ask which charges are deducted upfront.
- Compare repayment method and default terms.
Worked Indian example
For 40 grams at 91.6% purity, a ₹7,500 reference rate and 70% LTV, adjusted gold value is ₹2,74,800 and the estimated loan is ₹1,92,360.
| Adjusted gold value | 40 × 91.6% × ₹7,500 = ₹2,74,800 |
|---|---|
| Estimated loan at 70% LTV | ₹1,92,360 |
| 12-month EMI at 11% | About ₹17,001 |
| EMI interest | About ₹11,653 |
| 1% processing fee | About ₹1,924 |
Actual sanctioned value and charges can be lower or higher than this mathematical illustration.
Common mistakes
- Applying a jewellery retail price including making charges.
- Ignoring stones and non-gold weight.
- Comparing EMI and bullet interest as if identical.
- Looking only at interest rate and not fees.
- Assuming the entered LTV is a current regulatory entitlement.
Smart-use checklist
- Request an appraisal and weight record.
- Confirm renewal, auction and part-payment terms.
- Ask whether interest is reducing or simple.
- Keep receipts and repayment evidence.
- Borrow only what the repayment plan supports.
Related calculators and guides
Frequently asked questions
Is lender value the same as this estimate?
No.
What is purity adjustment?
Weight multiplied by purity percentage.
What is LTV?
The selected loan percentage of eligible value.
Is maximum LTV fixed?
Rules and lender policies can change; verify current terms.
What is bullet repayment?
Principal plus simple interest paid at the end in this model.
Are processing fees included?
Only the user-entered fee percentage.
Can sanctioned value be lower?
Yes.
What if repayment is missed?
Review lender notices, recovery and auction terms immediately.
Educational disclaimer
This is a mathematical estimate, not a valuation, sanction or personalized loan recommendation. Verify the current lender appraisal method, applicable LTV, rate, charges, repayment schedule and recovery terms.