A Gold Loan EMI Calculator helps you calculate the monthly installment (EMI) for your gold loan. Gold loans are secured loans where you pledge your gold jewelry or coins as collateral to get instant cash. Our calculator provides accurate EMI calculations for various gold loan schemes available in India.
How Gold Loan EMI is Calculated
Gold loan EMI is calculated using the standard EMI formula:
EMI = [P × R × (1+R)^N] / [(1+R)^N-1]
Where: P = Principal, R = Monthly Interest Rate, N = Tenure in Months
Key Features of Gold Loans
- Quick Processing: Instant approval and disbursal within hours
- Lower Interest Rates: Competitive rates from 8% to 24% per annum
- Flexible Tenure: Repayment periods from 3 months to 5 years
- High LTV Ratio: Up to 75-90% of gold value as loan amount
- Minimal Documentation: Simple KYC documents required
- No Processing Fees: Many lenders offer zero processing fees
Gold Loan Interest Rates by Banks
| Bank/NBFC |
Interest Rate |
Max LTV |
Processing Fee |
| HDFC Bank | 11.75% - 17.50% | 80% | 0.50% |
| ICICI Bank | 12.00% - 18.00% | 75% | 2.00% |
| SBI | 8.50% - 11.75% | 75% | Nil |
| Axis Bank | 11.00% - 17.00% | 80% | 1.00% |
| Muthoot Finance | 12.00% - 29.00% | 85% | Nil |
| Manappuram Finance | 12.00% - 26.00% | 80% | Nil |
Types of Gold Loan Repayment
- Regular EMI: Fixed monthly installments like other loans
- Bullet Payment: Pay only interest monthly, principal at maturity
- Overdraft Facility: Pay interest only on amount utilized
- Part Payment: Reduce principal amount anytime during tenure
Documents Required for Gold Loan
- KYC Documents (Aadhaar, PAN Card, Passport)
- Address Proof (Utility Bills, Bank Statement)
- Income Proof (Salary Slip, ITR, Bank Statement)
- Gold Jewelry/Coins with purity certificate
- Passport size photographs
Tips for Gold Loan EMI Planning
- Compare interest rates from multiple lenders
- Check the purity and weight of your gold accurately
- Understand all charges including processing and storage fees
- Choose appropriate tenure to keep EMI affordable
- Consider part payment option to reduce interest burden
- Keep gold insurance and safe storage in mind
- Plan prepayment if you expect cash inflow
Frequently Asked Questions
What is the maximum amount I can get on gold loan?
You can get up to 75-90% of your gold's market value as loan amount, depending on the lender's policy.
Is EMI mandatory for gold loans?
No, many lenders offer flexible repayment options including bullet payment and overdraft facility.
Can I prepay my gold loan?
Yes, most lenders allow prepayment without penalty charges for gold loans.
What happens if I don't repay the gold loan?
The lender can auction your gold to recover the outstanding loan amount after proper notice.