What is Gold Loan?
Gold loans are secured loans where you pledge gold ornaments as collateral. Banks and NBFCs typically lend 75-90% of the gold's value. Interest rates are lower than personal loans since the loan is secured against gold.
Formula
Gold Loan Calculation:
Gold Value = Weight × Rate per gram Maximum Loan = Gold Value × LTV% EMI = Standard EMI formula on loan amount RBI Guidelines: - Banks: Max 90% LTV - NBFCs: Max 75% LTV - Interest rates: 7-24% p.a.
How to use this calculator
Enter the weight of your gold (in grams), current gold rate per gram, LTV percentage offered by the lender, interest rate, and tenure. The calculator shows your eligible loan amount and EMI.