🏦 Gold Loan LTV Calculator
Calculate your gold loan eligibility, maximum loan-to-value (LTV), and monthly repayments.
⚜️ Pledged Gold Details
📊 LTV Capacity Used75% / 75% Max
📅 Repayment Estimates
🏦 Bank & NBFC Gold Loan Comparison
Calculated loan eligibility and estimated EMI for each lender based on your pledged gold of 50g (22K).
| Lender | Interest Rate (p.a.) | Max LTV | Eligible Loan Amount | Est. EMI (12 mo) | Processing Fee |
|---|---|---|---|---|---|
| SBI Gold Loan | 8.70% - 9.80% | 75% | ₹5,15,250 | ₹45,119/mo | 0.50% (Min ₹500) |
| HDFC Bank | 9.00% - 16.50% | 75% | ₹5,15,250 | ₹45,960/mo | 0.50% |
| Muthoot Finance | 9.90% - 22.00% | 75% | ₹5,15,250 | ₹46,506/mo | 0.20% - 1.00% |
| Manappuram Finance | 9.90% - 24.00% | 75% | ₹5,15,250 | ₹46,749/mo | ₹10 - ₹200 |
📖 Complete Guide to Gold Loan LTV & Eligibility in India
A gold loan is one of the fastest and most convenient ways to raise cash during an emergency in India. By pledging your physical gold ornaments or coins with a bank or NBFC, you can secure a loan instantly. However, before applying, it is crucial to understand how your loan amount is calculated. This is where the **Gold Loan LTV (Loan-To-Value) Calculator** helps you determine your exact loan eligibility and monthly EMI payouts.
🏦 What is Gold Loan LTV (Loan-to-Value) Ratio?
The Loan-to-Value (LTV) ratio is a financial term that defines the maximum loan amount you can borrow against your pledged gold. The Reserve Bank of India (RBI) mandates a **maximum LTV ratio of 75%** for all gold loans in India. This means if the market value of your gold jewellery is ₹1,00,000, lenders can disburse a maximum loan of ₹75,000. The remaining 25% serves as a safety buffer for lenders against sudden falls in gold prices.
⚖️ How Purity Affects Your Gold Value & Loan Amount
When you pledge gold jewellery, lenders weigh the ornaments and deduct the weight of any non-gold materials like stones, gems, beads, or wax. The net gold weight is then multiplied by a purity factor based on the Karat value of the gold. To understand purity differences in detail, read our guide on 22K vs 24K Gold. Also, make sure your jewellery is BIS hallmarked with HUID for faster valuation:
| Karat / Purity | Purity Percentage | Purity Factor used in Loan Calculation | Acceptability for Gold Loan |
|---|---|---|---|
| 24K (999 Purity) | 99.9% | 1.0 | Only Gold Coins/Bars (max 50g per customer) |
| 22K (916 Hallmark) | 91.6% | 0.9167 | Highly Preferred (Standard Jewellery) |
| 20K | 83.3% | 0.8333 | Accepted by most lenders |
| 18K (750 Purity) | 75.0% | 0.7500 | Minimum acceptable purity for gold loans |
| Below 18K | < 75.0% | N/A | ❌ Rejected by banks and NBFCs |
💡 How to Calculate Your Gold Loan Value (Step-by-Step)
Let's take an example: Suppose you have 50 grams of 22 Karat gold jewellery, and today's 24K gold rate is ₹7,500 per gram.
- Calculate Net Gold Purity Weight: Since it is 22K, the purity weight equivalent is 50g × 22/24 = 45.83 grams of pure gold.
- Calculate Market Value of Gold: Market Value = 45.83g × ₹7,500 = ₹3,43,725. Alternatively, you can multiply the actual weight (50g) by today's 22K gold rate (₹6,875/g) to arrive at the same value: 50g × ₹6,875 = ₹3,43,750.
- Apply LTV Ratio (Max 75%): Maximum Loan Amount = ₹3,43,750 × 75% = ₹2,57,812.
You can use our Gold Value Calculator to check the breakdown of your physical gold value including making charges and GST. For a detailed explanation of how jewellers price gold ornaments, read our article on how to calculate gold jewellery price in India.
📉 Repayment Methods for Gold Loans
Gold loans offer highly flexible repayment schemes that differ from standard home or personal loans:
- Standard Monthly EMI: You pay a fixed monthly installment comprising both principal and interest components, similar to our standard EMI Calculator.
- Bullet Repayment: You pay the entire principal and interest together at the end of the loan tenure (e.g., 6 or 12 months). No monthly payments are required. Interest is calculated monthly but accumulated.
- Overdraft (OD) Facility: Useful for business owners. Lenders set a credit limit based on your gold value, and you pay interest only on the amount you withdraw.
- Interest-Only Repayment: You pay only the interest amount monthly, and repay the entire principal as a lump sum at the end of the tenure.
📊 Gold Loan Interest Rates & LTV for Major Lenders (2026)
Different lenders offer varying interest rates, processing fees, and Loan-to-Value (LTV) options. While the Reserve Bank of India (RBI) caps the maximum LTV at 75%, public sector banks (like SBI) and state-owned entities (like KSFE) generally offer lower interest rates, whereas Non-Banking Financial Companies (NBFCs) like Muthoot and Manappuram provide faster loan processing.
| Lender Name | Typical Interest Rate (p.a.) | Maximum LTV Ratio | Processing Fees & Charges |
|---|---|---|---|
| SBI Gold Loan | 8.70% - 9.80% | Up to 75% | 0.50% of loan amount (Min ₹500) |
| KSFE Gold Loan | 7.50% - 9.75% (General) 4.90% (Janamithram) | Up to 75% | Nil to nominal charges |
| Federal Bank | 8.50% - 22.90% | Up to 75% | Up to 1.00% (Min ₹1,000) |
| HDFC Bank | 9.00% - 16.50% | Up to 75% | 0.50% of loan amount |
| Muthoot Finance | 9.90% - 22.00% | Up to 75% | 0.20% - 1.00% of loan amount |
| Manappuram Finance | 9.90% - 24.00% | Up to 75% | ₹10 to ₹200 |
Note: Interest rates, LTV options, and processing fees are subject to periodic changes by individual banks and NBFCs based on credit assessment and market conditions.
🔗 Related Tools & Resources
- Gold Loan Interest Rates Comparison — Compare latest rates from SBI, HDFC, Muthoot, Manappuram & more
- SBI Gold Loan — Schemes & Rates — Bullet repayment, overdraft, margin details & apply online
- Today's Gold Rate in India — Live 22K & 24K gold rates across major cities
- EMI Calculator — Calculate EMI for Home, Car, and Personal loans
- Sovereign Gold Bond Calculator — Compare SGB returns with physical gold investments
- FD Calculator — Estimate interest income on Bank Fixed Deposits
- Gold Price Forecast 2026 — Will gold prices increase or decrease in India?
- SGB vs Physical Gold — Which is the better investment in 2026?
- Gold Loan vs Personal Loan — Complete comparison with pros and cons
- Today's Silver Rate in India — Live silver prices across major cities
❓ Frequently Asked Questions
Q: What is LTV (Loan-to-Value) in a gold loan?
A: LTV (Loan-to-Value) is the percentage of your gold's market value that a bank or NBFC can lend to you. For example, if your gold jewellery is valued at ₹1,00,000, and the lender offers a 75% LTV, you can get a maximum loan of ₹75,000. The remaining 25% acts as a safety margin for the lender against gold price fluctuations. Read more in our guide on Gold Loan vs Personal Loan.
Q: What is the maximum gold loan LTV ratio permitted by the RBI?
A: As per the guidelines issued by the Reserve Bank of India (RBI), the maximum Loan-to-Value (LTV) ratio for gold loans is capped at 75%. This applies to all commercial banks, cooperative banks, and Non-Banking Financial Companies (NBFCs) like Muthoot Finance and Manappuram Finance. Some lenders may offer lower LTVs (e.g., 60% to 70%) to offer lower interest rates. For a detailed comparison of loan options, read our Gold Loan vs Personal Loan guide.
Q: How is gold loan eligibility calculated?
A: Gold loan eligibility is calculated using the formula: Eligible Loan Amount = Gold Weight (in grams) × Purity Factor × Today's Gold Rate × LTV Ratio (%). The purity factor is based on Karats: 24K (99.9% pure) is 1.0, 22K (91.6% pure) is 0.9167, and 18K (75% pure) is 0.75. Check today's gold rate in India before applying. To understand how jewellery price is determined (including making charges and GST), see our guide on how to calculate gold jewellery price.
Q: Can I get a gold loan on 22 Karat (916) or 18 Karat jewellery?
A: Yes, you can get a gold loan on 22K, 20K, and 18K gold. However, banks and NBFCs do not accept gold below 18 Karat purity for gold loans. The value of your loan will scale with the purity: a 22K ornament fetches a higher loan amount per gram compared to an 18K ornament of the same weight, as the pure gold content is higher. To understand the differences, read our article on 22K vs 24K gold purity differences. Ensure your jewellery is BIS hallmarked (HUID verified) for faster and more accurate valuation by lenders.
Q: How is interest calculated on gold loans?
A: Gold loan interest is calculated using two primary methods: 1) Monthly Reducing Balance Method (standard EMI), where interest is charged only on the outstanding principal amount each month — use our EMI Calculator to compute your exact monthly payout. 2) Bullet Repayment Method, where you pay both the principal and accumulated interest as a single lump sum at the end of the loan tenure (common for short-term 6-12 month loans). Compare current rates from all major lenders on our Gold Loan Interest Rates page.
Q: What happens if I cannot repay my gold loan on time?
A: If you fail to repay your gold loan, the lender will first send reminders and charge late payment penalties/overdue interest. If you continue to default after multiple notices, the bank or NBFC has the legal right to auction your pledged gold ornaments to recover the outstanding loan amount and interest. Any surplus money generated from the auction after recovering the dues is returned to you. This is one reason why many people prefer gold loans over unsecured options — read our Gold Loan vs Personal Loan comparison to understand the risks and advantages.
Q: Is a gold loan better than a personal loan?
A: A gold loan is generally better than a personal loan if you need quick funds and have physical gold. Gold loans have lower interest rates (typically 8% – 16% p.a. vs 10.5% – 24% for personal loans), require minimal documentation, do not strictly require a high CIBIL score, and offer instant disbursal. However, your physical gold will remain locked with the bank until the loan is fully repaid. Read our in-depth Gold Loan vs Personal Loan comparison guide to decide which is right for you.
Q: How can I secure a gold loan at the lowest interest rate?
A: To get the lowest gold loan interest rate: 1) Opt for public sector banks like SBI (starting at 8.70% p.a.), 2) Keep the LTV lower (e.g., borrow 60% instead of the maximum 75% LTV), 3) Pay regular monthly interest rather than opting for bullet repayment, and 4) Ensure your gold jewellery is BIS 916 hallmarked. Compare all lenders on our Gold Loan Interest Rates Comparison page.
Q: What documents are required to apply for a gold loan in India?
A: Gold loan documentation requirements are minimal compared to other loans. You typically need: 1) A valid photo ID proof (Aadhaar Card, PAN Card, Passport, or Voter ID), 2) Address proof (Aadhaar, utility bill, or ration card), 3) Passport-size photographs, and 4) The physical gold ornaments/coins you want to pledge. Unlike personal loans and home loans, gold loans do not require income proof, salary slips, ITR documents, or a mandatory CIBIL score check. Most lenders disburse the loan within 30 minutes. For faster processing, make sure your gold is BIS hallmarked with HUID.
Q: Can I get a gold loan on gold coins or bars?
A: Yes, most banks and NBFCs accept gold coins for gold loans, but with restrictions. As per RBI guidelines, the maximum weight of gold coins accepted per customer is typically 50 grams. Gold bars minted by recognized refineries are also accepted by some NBFCs. However, banks generally prefer gold jewellery over coins and bars due to easier valuation. Gold coins must be of a minimum 18K purity (75%) to be eligible. Use our Gold Value Calculator to check the current value of your gold coins or ornaments.
Q: What is the difference between a gold loan from a bank vs NBFC?
A: Banks (like SBI, HDFC, Canara Bank) offer gold loans at lower interest rates (typically 8% – 12% p.a.) but have stricter processing requirements and longer disbursement times. NBFCs (like Muthoot Finance, Manappuram Finance) charge higher interest rates (10% – 24% p.a.) but offer faster disbursal (often within 15 minutes), more flexible repayment options, and a wider branch network in rural and semi-urban areas. NBFCs also tend to accept a broader variety of gold items. Compare estimated EMIs for both in the lender comparison table above. For broader financial planning, consider our FD Calculator to explore alternative savings options.
Q: Is gold loan interest tax deductible in India?
A: Gold loan interest is tax deductible only if the loan is used for a business or professional purpose — the interest paid can be claimed as a business expense under Section 37(1) of the Income Tax Act. If the gold loan is used to purchase or construct a residential property, the interest may be deductible under Section 24(b) up to ₹2,00,000 per annum. However, if the gold loan is used for personal consumption (wedding, medical emergency, travel), the interest paid is NOT tax deductible. Use our Income Tax Calculator to estimate your total tax liability. For gold investment alternatives that offer capital gains, explore SGB vs Physical Gold.
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