Gold Loan Calculator India

Since April 2026, RBI applies a single tiered LTV cap uniformly to all regulated lenders — banks, NBFCs, and cooperative banks: up to 85% for loans under ₹2.5 lakh, 80% for loans between ₹2.5-5 lakh, and 75% for loans above ₹5 lakh. This replaced the earlier flat 75%-for-banks / up-to-85%-for-NBFCs distinction. For bullet-repayment loans, the LTV is calculated on the total amount due at maturity (principal + interest), not just the disbursed principal.

RBI requires lenders to monitor your LTV throughout the loan tenure, not just at sanction. If gold prices drop enough that your outstanding loan exceeds the permitted LTV tier for your loan size, the lender can issue a margin call asking you to pledge additional gold or repay part of the principal to bring the LTV back within limits. Choosing a lower initial LTV than the maximum allowed gives you a bigger buffer against price drops.

If you default, the lender can initiate the auction process for your pledged gold after following the required notice procedure under your loan agreement (often under the SARFAESI Act framework for secured lending). After the auction, the lender deducts the outstanding loan, accrued interest, and auction costs from the sale proceeds; any surplus is returned to you, and any shortfall may still be recoverable from you. Losing pledged gold to auction is the primary risk of a gold loan — borrow only what you can comfortably repay.

Typically no — gold loans use the pledged gold itself as collateral, so most lenders don't require income proof or a credit score check, which is why they're often faster to disburse than personal loans. Lenders still run standard KYC checks and require proof of ownership for the gold (and additional documentation like a succession certificate or NOC for jointly-owned or inherited gold).

Common options are EMI (principal + interest paid monthly), interest-only (pay interest monthly, principal at the end), and bullet repayment (principal and interest both paid at maturity). RBI caps bullet-repayment consumption loans at a 12-month tenure. Interest-only and bullet options keep monthly outgo low but require a larger lump sum at the end — pick based on your expected cash flow, not just the lowest monthly payment.