Gold Loan EMI Calculator Online

A gold loan EMI calculator is an online tool that tells you how much you would have to pay every month to repay a gold loan. A gold loan is a secured loan where the borrower pledges gold ornaments or coins with a bank or NBFC and receives cash in return. Once the loan and interest are repaid, the lender returns the pledged gold.

Gold loan rates generally range between about 8.5% and 11.88% a year. Some lenders may, however, charge close to 23% depending on the loan to value ratio, tenure and borrower profile.1 Even a small difference in rate can change the EMI and the total interest noticeably. A gold loan calculator EMI tool helps borrowers see this difference before they approach a lender.

The calculator is useful for comparing tenures, testing different rates, and deciding whether an EMI loan suits the household budget. It does not decide how much loan your gold can fetch, as that depends on the lender's valuation and the RBI's limits.

The EMI calculator gold loan borrowers use on this page needs only three inputs. You can change any of them to see how the EMI moves.

The inputs are as follows:

• Loan amount: The amount you plan to borrow against your gold, in rupees
• Interest rate: The annual rate offered by the lender, for example 12% a year
• Tenure: The repayment period in months, such as 6, 12, or 24 months, as per the lender's scheme

Once you enter these details, the gold loan EMI calculator online shows the monthly EMI, total interest payable, and total amount you would have to repay. Some versions also show a monthly repayment schedule, which splits each EMI into interest and principal.

Let's assume you enter a loan of ₹3,00,000 at 12% a year for 12 months. The calculator would show an EMI of ₹26,655, total interest of ₹19,856, and a total repayment of ₹3,19,856. Suppose you extend the tenure to 24 months, then the EMI would fall to about ₹14,122, but the total interest would rise to about ₹38,929. A longer tenure, therefore, eases the monthly outgo at the cost of nearly double the interest.

It is recommended to use the rate quoted in the lender's Key Fact Statement rather than an advertised starting rate. The final rate may depend on the loan amount, purity of gold, and scheme you choose.

A gold loan calculator EMI tool works on the reducing balance method, which means the monthly interest charged only on the principal still outstanding. Each EMI, therefore, carries a smaller interest portion and a larger principal portion than the one before it. The gold loan EMI calculator on this page uses this method for the EMI mode.

In the formulas below, P is the loan amount, r is the monthly interest rate (annual rate ÷ 12 ÷ 100), n is the number of months, and k is any given month:

For ₹3,00,000 at 12% a year for 12 months, r is 12 ÷ 12 ÷ 100, or 0.01. The EMI works out to ₹3,00,000 × 0.01 × (1.01)¹² ÷ [(1.01)¹² minus 1], which is about ₹26,655. The total interest is ₹26,655 × 12 minus ₹3,00,000, or ₹19,856.

The formula for the interest portion can be used to check any single month. For month 6, it gives ₹3,00,000 × 0.01 × [(1.01)¹² minus (1.01)⁵] ÷ [(1.01)¹² minus 1], which comes to about ₹1,793. The rest of that EMI, about ₹24,861, goes towards reducing the principal.

Under the monthly interest mode, the borrower pays only interest of ₹3,000 every month and repays the full ₹3,00,000 at the end. Under the bullet mode, nothing is paid until maturity, when principal and interest are settled together. At simple interest, the bullet amount would be ₹3,36,000.

Lenders may follow different methods for bullet loans. Some compound the interest monthly or quarterly; in that case, the interest on the same loan would be about ₹38,048 instead of ₹36,000. The calculator on this page uses simple interest for the bullet mode, so the lender's stated method should be checked before relying on the figure.

The following example shows the repayment schedule for a ₹3,00,000 gold loan at 12% a year for 12 months in the EMI mode. It uses the same method as the EMI calculator gold loan on this page, and the balance falls to zero with the last instalment.

Note: In the above example, figures are rounded to the nearest rupee.

The interest in the first month is ₹3,000, which is 1% of the full loan. By the twelfth month, it falls to only ₹264, as most of the principal has already been repaid. Early EMIs carry more interest because the outstanding balance is highest at the start, and interest is always charged on that balance.

Over the year, the borrower pays a total of ₹3,19,856, of which ₹19,856 is interest. Prepaying a part of the loan in the early months would reduce the interest further, subject to any prepayment charges the lender may apply.

For a larger loan, the same method applies. Suppose a borrower takes ₹10 lakh at 12% a year for 12 months, then the EMI would be about ₹88,849, and the total interest would be about ₹66,185. If the rate is 9.5% instead, the EMI would drop to about ₹87,684, and the total interest to about ₹52,202. A difference of 2.5 percentage points in rate, therefore, saves about ₹13,983 over one year on a ₹10 lakh loan.

Lenders usually offer three ways to repay a gold loan. These are equated monthly instalments, monthly interest with principal at the end, and a bullet payment of principal and interest together at maturity. The right mode depends on your cash flow, the purpose of the loan and when you expect to have funds. A gold loan EMI calculator online helps to compare the cost of each.

The following example compares the three modes for a loan of ₹3,00,000 at 12% a year for 12 months:

The EMI mode is the only one that reduces the principal every month, which is why it costs the least in interest. The other two modes keep the full ₹3,00,000 outstanding throughout, so interest is charged on the entire amount for all 12 months. In this example, the EMI mode saves ₹16,144 compared with the other two.

Under the RBI (Lending Against Gold and Silver Collateral) Directions, 2025, bullet repayment loans taken for consumption must be repaid within 12 months.2 For such loans, the loan to value ratio is calculated on the total amount payable at maturity, including interest. Lenders had to comply with these directions by 1 April 2026.

This LTV rule can reduce the amount available under a bullet loan. Suppose your gold is eligible for ₹1,14,192 at 85% LTV, and the lender charges 12% a year for 12 months. Then, the principal can be only about ₹1,01,957 because ₹1,01,957 plus 12% interest equals the eligible ₹1,14,192. A bullet loan may also be renewed, but only after the accrued interest is paid.

The choice can be made as follows:

• EMI mode: Suitable when you have a regular monthly income and want a predictable budget with the lowest total interest.
• Monthly interest mode: May suit short term needs where income is irregular, but you are confident of repaying the principal at the end.
• Bullet mode: Generally suits very short needs, when a lump sum, such as a maturing deposit or a business receipt, is expected before the loan ends.

Let's assume that a shop owner needs ₹3,00,000 for stock and expects a large payment in 8 months. The bullet mode may suit this need, as no monthly outgo is required. A salaried borrower with a fixed monthly income, on the other hand, would usually save more with the EMI mode.

Gold loans are generally available to individuals who own gold ornaments or coins and meet the lender's KYC requirements. Since the loan is secured by gold, a high credit score is usually not mandatory, though lenders may assess repayment capacity for larger loans. A gold loan EMI calculator helps you to plan the repayment once the eligible amount is known.

The amount you can borrow depends on the value of your gold and the loan to value (LTV) limits set by the RBI. For consumption loans, the LTV can be up to 85% for loans up to ₹2.5 lakh and 80% for loans above ₹2.5 lakh and up to ₹5 lakh. Loans above ₹5 lakh carry an LTV limit of 75%.3 Gold is valued at the lower of its 30 day average price or the previous day's closing price. These prices are taken from IBJA or a SEBI regulated commodity exchange.

Gold of lower purity is first converted to its 22 carat equivalent. Let's assume that you pledge 10 grams of 18 carat jewellery when 22 carat gold is priced at ₹1,34,343 per 10 grams. The 22 carat equivalent value would be ₹1,34,343 × 18 ÷ 22, or about ₹1,09,917. At 85% LTV, the loan available would be about ₹93,429, compared with about ₹1,14,192 for the same weight of 22 carat gold.

The main eligibility conditions and documents are as follows:

• Age and ownership: The borrower should be at least 18 years old and must declare ownership of the gold pledged.
• KYC documents: Identity and address proof, such as PAN and Aadhaar, along with a recent photograph.
• Gold accepted: Ornaments and coins, with purity converted to its 22 carat equivalent for valuation. Stones and gems are not counted.
• Quantity limit: Up to 1 kg of gold ornaments and 50 grams of gold coins per borrower, across all loans.
• Credit assessment: Required when total gold loans exceed ₹2.5 lakh.
• Loan papers: The lender issues a Key Fact Statement and an assay certificate showing the purity, weight and value of the gold.

Where a loan is not repaid and the gold is auctioned, the borrower must be present during valuation. Any surplus left after recovering the dues must be returned within seven working days. Once a loan is closed, the pledged gold must be returned within seven working days, and lenders must pay ₹5,000 a day for any delay.5 The exact documents may vary slightly from one lender to another.

A gold loan EMI calculator helps you to understand the monthly instalment, total interest, and total repayment before you pledge your gold. The reducing balance method used in the EMI mode generally keeps the total interest lower than the monthly interest or bullet modes. The final amount, however, depends on the lender's rate, valuation, and scheme terms.

A gold loan is backed by family assets, and the lender may auction the pledged gold if the loan is not repaid. If the earning member is unable to repay due to an unforeseen event, the family could lose jewellery that may have sentimental value. A term insurance plan can help the family to handle outstanding liabilities in such a situation, subject to the policy terms.

Gold loans used for regular expenses can also delay long term goals. Reading about what retirement planning involves, using a retirement planning calculator and reviewing investment plans can help families to build savings for future needs.

Disclaimer: The figures on this page are illustrations based on assumed rates and tenures. Axis Max Life Insurance does not offer gold loans. Insurance is not required to take a gold loan, and all loan terms are decided by the lender.