What Is a Gold Loan EMI Calculator?
A gold loan EMI calculator computes the fixed monthly instalment for a loan secured against gold jewellery or coins in India.
It uses the reducing balance formula: EMI = P × R × (1+R)N ÷ ((1+R)N − 1)
where N is in months (gold loans use monthly tenure, not years).
For a ₹1 lakh gold loan at 9.5% for 12 months, the EMI is ₹8,762/month and
total interest is ₹5,144.
Gold loan rates in India in 2026 range from 8.75% (SBI) to 9.85% (Manappuram).
The RBI caps LTV at 75% for banks.
Gold Loan EMI Calculator India 2026 – SBI, HDFC, Muthoot & More
Calculate the exact monthly EMI for your gold loan in India. Check installments for ₹1 lakh and ₹2 lakh gold loans, compare tenures from 3 to 36 months, and estimate your loan eligibility using our LTV calculator. Updated for 2026 gold loan interest rates from SBI, HDFC, ICICI, Muthoot Finance, and Manappuram.
- check_circle Accurate reducing-balance EMI for gold loans
- check_circle LTV eligibility calculator (weight + purity + rate)
- check_circle 7 bank and NBFC rate comparison
- check_circle Gold loan vs personal loan cost comparison
Gold Loan EMI Calculator India
Disclaimer: Results are indicative estimates only. Actual EMIs, interest rates, and loan amounts vary based on your lender's gold appraisal, purity assessment, and final terms. Gold price fluctuations affect LTV eligibility. This tool is for planning purposes only. Always verify final terms with your bank or NBFC. About our methodology →
Gold Loan EMI – Amount and Tenure Comparison (at 9.5%)
Monthly EMI and total interest for common gold loan amounts across 12, 18, and 24-month tenures at 9.5% interest.
| Loan Amount | 12-Month EMI | 18-Month EMI | 24-Month EMI | Total Interest (12M) | Total Interest (24M) |
|---|---|---|---|---|---|
| ₹50,000 | ₹4,384 | ₹2,991 | ₹2,296 | ₹2,608 | ₹5,104 |
| ₹100,000 | ₹8,768 | ₹5,983 | ₹4,591 | ₹5,216 | ₹10,184 |
| ₹200,000 | ₹17,537 | ₹11,965 | ₹9,183 | ₹10,444 | ₹20,392 |
| ₹300,000 | ₹26,305 | ₹17,948 | ₹13,774 | ₹15,660 | ₹30,576 |
| ₹500,000 | ₹43,842 | ₹29,914 | ₹22,957 | ₹26,104 | ₹50,968 |
Calculated at 9.5% annual interest rate. Actual rates from SBI start at 8.75%, which reduces total interest by approximately 8% compared to 9.5%.
Gold Loan Eligibility – LTV Calculator (Weight × Purity × Rate)
Find the maximum loan amount against your gold based on current market rate and RBI LTV limits.
Gold Loan LTV Calculator
RBI caps gold loan LTV at 75% for banks. PNB offers up to 80% LTV. Final loan amount depends on the bank's physical appraisal and daily gold price on the disbursement date.
Gold Loan LTV by Purity
Estimated loan per 10 grams at ₹65,000/10g reference rate.
| Gold Purity | Max LTV | Loan per 10g (Est.) |
|---|---|---|
| 24 Carat | 75% | ₹48,750 |
| 22 Carat | 75% | ₹44,688 |
| 18 Carat | 70% | ₹34,125 |
| Gold Coins | 70% | ₹45,500 |
Actual loan amount depends on the bank's daily gold price and physical appraisal at the branch. These are estimates at the reference rate above.
Gold Loan Interest Rates India 2026 – Bank and NBFC Comparison
Compare gold loan rates, processing fees, LTV limits, and tenures from top lenders as of May 2026.
| Bank / NBFC | Interest Rate (p.a.) | Processing Fee | Max LTV | Tenure |
|---|---|---|---|---|
| SBI | 8.75% | 0.25% | 75% | 12–36 months |
| HDFC | 9.25% | 0.50% | 75% | 12–36 months |
| ICICI | 9.00% | 0.35% | 75% | 12–36 months |
| Axis | 9.50% | 0.50% | 75% | 12–24 months |
| PNB | 8.90% | 0.25% | 80% | 12–36 months |
| Muthoot Finance | 9.75% | 0.50% | 75% | 3–12 months |
| Manappuram | 9.85% | 0.50% | 75% | 3–12 months |
Rates are indicative as of May 2026. PSU banks offer lower rates but require branch visits for gold appraisal. NBFCs process faster — sometimes within 30 minutes — but at higher rates. Always confirm current rates directly with the lender.
Visual Breakdown of Your Gold Loan Repayment
Principal vs interest split, and how your outstanding balance reduces month by month.
Principal vs Total Interest Paid
Gold loans typically have a small interest slice — secured collateral means banks offer lower rates than unsecured personal loans.
Outstanding Loan Balance by Month
The balance falls steadily — faster in later months as more of each EMI goes to principal.
Monthly Gold Loan Amortization Schedule (First 6 Months)
Exact EMI, interest paid, principal repaid, and remaining balance for each of the first six months.
| Month | EMI (₹) | Interest (₹) | Principal (₹) | Remaining Balance (₹) |
|---|
Gold Loan vs Personal Loan – Which Costs Less?
Head-to-head comparison for ₹1 lakh over 12 months — same amount, very different cost.
Gold Loan
- Interest Rate: 9.5% p.a. (SBI from 8.75%)
- Monthly EMI: ₹8,762
- Total Interest: ₹5,144
- Processing Fee: 0.25–0.50%
- Prepayment: Zero penalty
- Approval Speed: Same-day (NBFC: 30 minutes)
- Best For: Short-term cash needs with gold available
Personal Loan
- Interest Rate: 12.5% p.a. (typical bank rate)
- Monthly EMI: ₹8,912
- Total Interest: ₹6,944
- Processing Fee: 1–2%
- Prepayment: 2–5% penalty (most lenders)
- Approval Speed: 1–5 working days
- Best For: Borrowers without gold or needing larger amounts
Key Insight: For a ₹1 lakh, 12-month loan, a gold loan saves ₹1,800 in total interest and ₹1,000–₹2,000 in processing fees compared to a personal loan — roughly 35% cheaper overall. If you have gold jewellery sitting idle, a gold loan is almost always the smarter short-term borrowing choice.
Gold Loan Prepayment – Save Interest with Zero Penalty
Unlike personal loans, most gold loans carry zero prepayment charges. Use this flexibility to cut total interest.
Lump-Sum Prepayment (₹1L Loan, 9.5%, 12M)
Making a ₹25,000 lump-sum payment after 6 months:
Extra EMI Strategy
Paying ₹1,000 extra per month on a ₹1L, 9.5%, 12-month loan:
Why Prepayment Works Better on Gold Loans
Unlike personal loans with prepayment penalties, most gold loans allow full closure at any time. This means you can react to any cash windfall — a bonus, freelance payment, or sale proceeds — to free your gold collateral faster and eliminate remaining interest.
- Reduce total interest paid
- Shorten loan tenure
- Recover pledged gold sooner
- Avoid gold auction risk
Exact savings depend on prepayment amount and timing. Use our Loan Prepayment Calculator for precise figures.
How Is Gold Loan EMI Calculated? The Reducing Balance Formula
Step-by-step calculation for a ₹1 lakh gold loan — tenure in months, not years.
Gold Loan EMI Formula (Reducing Balance Method)
P = Principal (loan amount based on gold value × LTV)
R = Monthly interest rate = Annual rate ÷ 12 ÷ 100
N = Loan tenure in months (gold loans use months directly, not years)
Worked Example: ₹1 Lakh at 9.5% for 12 Months
- Given: P = ₹1,00,000 · Annual Rate = 9.5% · Tenure = 12 months
- Monthly Rate (R): 9.5 ÷ 12 ÷ 100 = 0.0079167
- Tenure (N): 12 months
- Apply formula: EMI = 1,00,000 × 0.0079167 × (1.0079167)12 ÷ ((1.0079167)12 − 1)
- Monthly EMI = ₹8,762
- Total Payment: ₹8,762 × 12 = ₹1,05,144
- Total Interest: ₹1,05,144 − ₹1,00,000 = ₹5,144
6 Key Factors That Affect Your Gold Loan EMI
Understanding these helps you get the best terms and manage repayment efficiently.
1. Interest Rate
A 0.5% rate difference on ₹1 lakh over 12 months adds ≈₹45/month and ₹540 total. Comparing SBI (8.75%) vs Manappuram (9.85%) saves ₹107/month — ₹1,284 over 12 months on ₹1 lakh. Always compare at least two lenders.
2. Loan Tenure
A 12-month tenure for ₹1 lakh costs ₹5,144 total interest vs ₹10,016 for 24 months — 95% more. Shorter is almost always better for gold loans. Only extend if your monthly cash flow genuinely cannot support higher EMIs.
3. Gold Purity and Weight
Higher purity and more grams directly increase your eligible loan amount. 22K gold fetches approximately 8% more than 18K for the same weight. Have your gold professionally appraised at the bank before applying — private appraisals can overestimate.
4. Current Gold Market Rate
A ₹1,000 increase in gold price per 10g increases your eligible loan by approximately ₹1,500 for 20 grams at 75% LTV. Apply when gold prices are high to maximise loan eligibility. Banks use the IBJA closing rate or their own daily declared rate.
5. Bank vs NBFC
PSU banks (SBI, PNB) offer 8.75–8.90% but require branch visits and take a few hours. Muthoot Finance and Manappuram disburse in 30 minutes at 9.75–9.85%. The 1% rate premium on ₹1 lakh for 12 months costs ₹550 extra — weigh urgency against cost.
6. Prepayment Flexibility
Most gold loans carry zero prepayment penalty — a significant advantage over personal loans. If you receive any lump sum (bonus, sale proceeds), immediately prepaying reduces remaining principal and eliminates future interest charges. Use this aggressively.
Personalised Gold Loan Recommendation
Adjust the sliders above to get a personalised recommendation including bank rate comparison, prepayment savings, and gold loan vs personal loan cost comparison.
6 Smart Tips for Gold Loan Borrowers in India
Practical, experience-based advice to secure the best gold loan and manage repayment efficiently.
1. Compare Bank vs NBFC for Rate vs Speed
PSU banks like SBI offer 8.75% but require an in-branch gold appraisal taking 1–2 hours. Muthoot Finance and Manappuram disburse in 30 minutes at 9.75–9.85%. The 1% premium on ₹1 lakh for 12 months is ₹550. Choose based on urgency — if you can wait a few hours, the bank saves you money.
2. Understand Your LTV Ratio
The RBI caps gold loan LTV at 75% for banks. For ₹1 lakh worth of gold, the maximum loan is ₹75,000. Check today's gold price on MCX or IBJA before visiting the branch — walk in knowing your approximate eligibility so you aren't surprised by a lower-than-expected sanction.
3. Use Zero Prepayment Penalty Aggressively
Gold loans allow full closure at any time without penalty. Any windfall — a bonus, freelance income, sale proceeds — should go directly towards prepayment. This frees your pledged gold faster and eliminates remaining interest. Set a reminder to prepay as soon as extra cash arrives.
4. Choose the Shortest Tenure Your Cash Flow Allows
12 months vs 24 months on ₹1 lakh costs ₹5,144 vs ₹10,016 in interest — 95% more for the longer tenure. If your monthly cash flow can support the higher EMI, always choose the shorter tenure. The total savings easily outweigh the monthly inconvenience.
5. Understand the Auction Policy
If you miss EMIs or fail to renew your gold loan, the bank or NBFC has the legal right to auction your gold collateral after serving notice. Always pay on time — or contact your lender in advance for an extension. NBFCs in particular are known to move quickly on auctions after default.
6. Compare Against Personal Loans Before Deciding
For ₹1 lakh over 12 months, a gold loan at 9.5% costs ₹5,144 in interest vs ₹6,944 for a personal loan at 12.5% — plus a 1–2% higher processing fee. Unless you urgently need unsecured credit or don't have gold, a gold loan is almost always 30–40% cheaper.
Frequently Asked Questions: Gold Loan EMI in India
Direct answers to the most searched gold loan questions — sourced from RBI guidelines and lender policies.
Gold loan EMI is calculated using the reducing balance method: EMI = P x R x (1+R)^N / ((1+R)^N - 1), where P is the loan amount (based on gold value and LTV ratio), R is the monthly interest rate (annual rate divided by 12 divided by 100), and N is the tenure in months. For a Rs 1 lakh gold loan at 9.5% for 12 months, the monthly EMI is Rs 8,762 and total interest is Rs 5,144.
For a Rs 1 lakh gold loan at 9.5% interest: 12 months tenure gives EMI of Rs 8,762 (total interest Rs 5,144); 18 months gives EMI of Rs 5,952 (total interest Rs 7,136); 24 months gives EMI of Rs 4,584 (total interest Rs 10,016). Use the calculator above for exact figures based on your chosen bank rate and tenure.
For a Rs 2 lakh gold loan at 9.5%: 12 months gives EMI Rs 17,524 (total interest Rs 10,288); 18 months gives EMI Rs 11,904 (total interest Rs 14,272); 24 months gives EMI Rs 9,168 (total interest Rs 20,032). All figures use the reducing balance method.
Gold loan interest rates in India in 2026 range from 8.75% to 10.5%. SBI offers rates from 8.75%, PNB from 8.90%, ICICI from 9.00%, HDFC from 9.25%, Muthoot Finance from 9.75%, and Manappuram from 9.85%. Rates depend on the lender, loan amount, and gold purity.
Banks like SBI and PNB offer gold loan tenures up to 36 months. Axis Bank offers up to 24 months. NBFCs like Muthoot Finance and Manappuram typically focus on shorter tenures of 3 to 12 months, though they may allow rollovers or extensions. For longer-tenure gold loans, PSU banks are the better choice.
Yes. Most banks and NBFCs in India allow gold loan prepayment without any penalty charges — unlike personal loans which often carry 2-5% prepayment fees. You can close your loan at any time by paying the outstanding principal plus interest accrued to that date. This makes gold loans highly flexible for borrowers who expect irregular income.
The RBI caps gold loan LTV (Loan-to-Value) ratio at 75% for banks. This means for gold worth Rs 1 lakh, the maximum loan is Rs 75,000. PNB offers up to 80% LTV. Some NBFCs may offer slightly higher LTVs for high-purity gold. Higher gold purity (24K vs 18K) and current market price directly determine the maximum loan eligibility.
Apply for a gold loan online through: (1) Your bank's official website or mobile app — SBI, HDFC, and ICICI all have gold loan application portals where you can get pre-approval and then visit a branch for gold appraisal; (2) Muthoot Finance or Manappuram websites for fast-track NBFC applications; (3) Some lenders now offer doorstep gold appraisal for loans above Rs 50,000. Documents needed: PAN card, Aadhaar card, and the gold jewellery for physical appraisal at the branch.
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