How much gold loan can I get per gram? RBI's rules explained

How your gold is valued

• Only the gold counts. Stones, wax, lac and other materials are deducted, so the "net weight" is often less than the jewellery's total weight.
• Purity matters. Value is worked out at the 22-carat benchmark price and adjusted for purity, so 18-carat gold is worth 18/22 of the 22-carat rate.
• The benchmark price is typically the lower of the previous day's closing price and the 30-day average from a recognised source such as the India Bullion and Jewellers Association (IBJA).

RBI's loan-to-value limits

Under RBI's directions on lending against gold and silver, in force from 1 April 2026, the maximum loan for consumption purposes depends on the loan size:

For bullet loans (everything repaid at the end), the interest due at maturity also has to fit within the limit, so you can borrow a little less, and the tenure can be at most 12 months.

Worked example: 30 grams, three ways to repay

30 grams of 22-carat gold at ₹14,000 a gram, 10% interest, 12 months:

EMI repayment costs the least interest because the principal falls every month. Bullet and interest-only loans charge interest on the full amount for the whole tenure.

Other rules worth knowing

• You can pledge up to 1 kg of gold ornaments and up to 50 grams of gold coins across all lenders.
• Gold bars and biscuits (primary gold) cannot be pledged.
• Once you repay in full, the lender must return your gold within 7 working days, or pay you ₹5,000 for each day of delay.
• If you can't repay, the lender can auction the gold after giving due notice, and must return any surplus after recovering its dues.

Check your own gold

Enter your gold's weight, purity and today's rate in the gold loan calculator to see your maximum loan and the cost of each repayment option. To compare lenders' offers, use the loan offer comparison.

Frequently asked questions