How your gold loan amount is calculated
- Value of your gold = net gold weight × (purity ÷ 22) × today's 22-carat rate per gram. RBI uses 22 carat as the benchmark.
- Maximum loan = value × the loan-to-value (LTV) limit for your loan size:
Loan amount Max LTV Up to ₹2.5 lakh 85% ₹2.5 lakh to ₹5 lakh 80% Above ₹5 lakh 75% - For bullet loans, principal plus the interest due at maturity must fit within the limit, and the tenure can be at most 12 months.
Then we work out repayments. EMI loans use the standard reducing-balance method. Bullet and interest-only loans are charged simple interest on the full amount for the whole tenure, which is how most lenders price them.
How much gold do you need for a ₹1 lakh, ₹2 lakh or ₹5 lakh loan?
At a 22-carat rate of ₹14,000 per gram, with EMI or interest-only repayment and RBI's maximum LTV (net gold weight, after stones are removed):
| Loan | LTV limit | 22K gold | 18K gold |
|---|---|---|---|
| ₹1,00,000 | 85% | 8.5 g | 10.3 g |
| ₹2,00,000 | 85% | 16.9 g | 20.6 g |
| ₹3,00,000 | 80% | 26.8 g | 32.8 g |
| ₹5,00,000 | 80% | 44.7 g | 54.6 g |
| ₹10,00,000 | 75% | 95.3 g | 116.5 g |
Gold rates change daily, so enter today's rate and choose "Loan amount you need" in the calculator above for your exact figure. Bullet-repayment loans need a little more gold, because the interest due at the end also counts towards the LTV limit.
Worked example
20 grams of 22-carat gold at ₹14,000 per gram (₹2,80,000), 10% interest, 12 months:
| EMI: maximum loan | ₹2,38,000 |
| EMI: monthly instalment | ₹20,924 |
| EMI: total interest | ₹13,088 |
| Interest-only: monthly interest | ₹1,983 |
| Interest-only: total interest | ₹23,800 |
| Bullet: maximum loan | ₹2,16,363 |
| Bullet: due at the end | ₹2,37,999 |
That is about ₹11,900 per gram with EMI repayment. The bullet loan is smaller because the year's interest must also fit within the 85% limit.
Assumptions
- The gold rate you enter is the lender's 22-carat benchmark for the day. Real valuations can be slightly lower.
- The weight is net gold weight, after deducting stones and impurities.
- LTV limits are those for consumption loans to individuals. Agricultural and business gold loans follow different rules.
- No penal charges for late payment. Lenders may also charge valuation fees. Compare full offers with the loan offer comparison.
Your rights under RBI's gold loan rules
- You must get a loan agreement that states the gold's weight, purity and value.
- Your gold must be returned within 7 working days of full repayment, or the lender pays ₹5,000 per day of delay.
- Before an auction, the lender must give you notice, and must pay you any surplus left after recovering dues.
- A bullet loan can be renewed or topped up only after the interest due has been paid.
Frequently asked questions
How much gold loan can I get per gram?
Multiply the 22-carat rate per gram by your gold's purity factor (for example 18/22 for 18-carat) and by the loan-to-value limit. Under RBI's rules that is up to 85% for loans up to ₹2.5 lakh, 80% for ₹2.5 lakh to ₹5 lakh, and 75% above ₹5 lakh. Lenders weigh only the gold, after removing stones and other material.
How much gold is required for a ₹1 lakh loan?
At a 22-carat rate of ₹14,000 per gram and the 85% LTV limit, about 8.5 grams of 22-carat gold (about 10.3 grams of 18-carat). For ₹5 lakh, where the limit is 80%, about 44.7 grams of 22-carat. Use today's rate in the calculator for your exact figure.
Can I get a gold loan on 18-carat gold?
Yes. Lenders accept 18-carat and other purities and value them in proportion to the 22-carat benchmark, so 18-carat gold is worth 18/22 of the 22-carat rate per gram. Choose 18K in the calculator.
What is the RBI LTV limit on gold loans?
RBI's 2025 directions on lending against gold and silver, in force from 1 April 2026, set tiered limits for consumption loans: 85% of the gold's value for loans up to ₹2.5 lakh, 80% for loans above ₹2.5 lakh and up to ₹5 lakh, and 75% above ₹5 lakh. For bullet-repayment loans, the interest payable at maturity is counted inside this limit.
What is a bullet repayment gold loan?
You pay nothing each month and repay the full principal plus interest in one go at the end. RBI limits bullet gold loans to 12 months. Because the interest is included in the LTV limit, the amount you can borrow is a little lower than with EMI repayment.
Which repayment option is cheapest?
For the same rate and tenure, EMI repayment costs the least interest because the principal reduces every month. Bullet and interest-only loans charge interest on the full amount for the whole tenure. Choose bullet only if you expect a lump sum before maturity.
How is my gold valued?
Lenders use a benchmark 22-carat price: the lower of the previous day's closing price and the 30-day average, as published by a recognised source such as the India Bullion and Jewellers Association (IBJA). Gold of other purities is valued in proportion. Only the gold content counts.
What happens if I can't repay?
The lender can auction the pledged gold after giving you due notice, and must return any surplus after recovering the dues. Once you repay in full, the lender must return your gold within 7 working days, or pay you compensation of ₹5,000 for each day of delay.
Is there a limit on how much gold I can pledge?
Yes. Across all lenders, you can pledge up to 1 kg of gold ornaments and up to 50 grams of gold coins. Primary gold such as bars and biscuits cannot be pledged.