Gold Loan Calculator

Updated On - 26 Oct 2025

Gold loan is a popular type of secured loan where you pledge your gold jewellery, coins, or ornaments as collateral to borrow money from a bank or financial institution. It is quick and hassle-free way to borrow funds in times of need. However, it is important to calculate the interest that will be charged before borrowing any form of loan. In such a case, a gold loan EMI calculator will help you estimate the amount of gold loan you can borrow, the applicable interest rates, and your EMIs, making financial planning easier. Read on to know more about how you can use a gold loan calculator. 

What is a Gold Loan Calculator?

A gold loan calculator is a user-friendly tool offered by BankBazaar which helps you calculate the interest charged on your gold loan, the amount of EMI you will have to pay, and also check the outstanding balance. This tool is available free of cost and simple to use. It helps you make an informed decision regarding the amount of loan you can borrow, as per your requirement and repayment capacity.  

How to Use the Gold Loan Calculator? 

The gold loan calculator is very easy to use. Follow the steps given below to use gold loan calculator offered by BankBazaar: 

Step 1: Open the gold loan calculator offered by BankBazaar by clicking on link Gold Loan Calculator

Step 2: Fill in details like the amount of loan you wish to borrow, interest charged by the institution you are borrowing from, processing fee, etc. 

Step 3: Once you have entered all the details,  

A General Gold Loan Calculator will have the following Fields:

  1. Loan amount - This is the overall principal amount of the loan you are seeking or have availed.
  2. Repayment tenure - The repayment tenure denotes the period of time over which you will be repaying the loan amount. You can select the number of months that you are comfortable repaying the loan in.
  3. Interest rate - This is the rate of interest you will be charged on your gold loan. This figure will vary from provider to provider.

All you need to do is enter the relevant information and click on submit. You will be shown the monthly repayment amount that you have to give as well as the break-up of principal and interest amounts.

Calculate with Gold Loan Calculator

One of the best ways to find out the amount of gold you have to see how much money you can borrow is by using the Gold Loan Calculator. To use it:

  1. Enter the number of gold ornaments you will be splurging.
  2. Enter their weights along with purity in carats.
  3. The application will tell you how much those gold items can secure you. Also, you can mention the duration for which you would want to lend and the amount to get the required interest amount on the loan.

Advantages of Using Gold Loan Calculator: 

Using a gold loan calculator helps you make an informed decision regarding your loan. Some of the other advantages of using a gold loan calculator are as given below: 

  1. Accurate Calculations: A gold loan calculator provides precise estimates of monthly instalments in seconds. By entering the principal amount, interest rate, and tenure, you get instant results that help you make informed financial decisions. 
  1. User Friendly: The calculator is very easy to use and makes planning simple. You can test different loan amounts and tenures to find the optimal repayment option that fits your budget, without needing professional assistance. 
  1. Assistance in Planning: With a gold loan calculator, you get a clear view of EMIs, interest, and total repayment amounts. It helps you understand the true cost of borrowing, avoiding surprises or hidden charges and boosting confidence in your financial choices. 

Factors Affecting Gold Loan EMI 

When you borrow a gold loan, the gold rate per gram is a determining factor to calculate the loan amount you can get. Gold loans are secured against your jewellery and any changes in gold prices directly impact on your borrowing capacity. Read on to know more about the factors that affect your gold loan EMI: 

  1. Higher Gold Prices, Higher Loan Value: Every time gold prices rise, you can avail yourself of a larger loan against the same quantity of gold. 
  1. Purity: The gold’s purity (carat) affects the per-gram rate used for loan calculations, with higher purity gold fetching better loan amounts. 
  1. Market-Driven Loan-to-Value (LTV) Ratio: Lenders set the LTV ratio based on market conditions, influencing how much loan you can receive per gram of gold. 
  1. Gold Loan Calculator: A gold loan calculator helps estimate your eligible loan amount, interest rates, and EMIs, enabling better financial planning. 

FAQs on Gold Loan Calculator

  • What are the advantages of a gold loan?

    Gold loans provide a practical means of accessing money when needed and releasing the latent value of idle gold holdings. They offer liquidity to satisfy urgent financial demands or objectives with little paperwork and speedy approval.

  • What is the gold loan rule?

    The majority of lenders demand that borrowers be between the ages of 18 and 65. Ownership: The gold you are guaranteeing must be yours. Generally speaking, only jewellery weighing 18 to 24 carats is permitted. Income proof is typically not needed, therefore people of all income levels can apply.

  • What is the basis for granting a gold loan?

    After assessing the gold offered as collateral, the bank establishes the maximum loan amount and interest rate that can be applied. You can choose the loan payback period as the borrower, and it should be between six and twenty-four months.

  • What is the RBI's new gold loan regulation?

    For gold loans from banks and NBFCs, the RBI has specified a minimum loan amount of Rs.1000 and Rs.10,000, respectively. Borrowers must present Know Your Customer (KYC) documentation, such as evidence of identification, address, and income, in order to be eligible for a gold loan.

  • How is the value of gold determined for a loan?

    You may determine how much financing you can obtain based on the weight of your gold by calculating the Gold Loan per gramme. For example, if the lender gives a Loan-to-Value (LTV) ratio of 75% and the current price of gold is Rs.5,000 per gramme, the loan amount would be Rs.3,750 per gramme

  • Will I be charged for using BankBazaar gold loan calculator?

    No, you will not be charged for using BankBazaar gold loan calculator. It is available free of cost. 

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