EmiSetu

Gold Loan Calculator

Calculate the EMI on a gold loan from any bank or NBFC. Compare interest cost across schemes with this gold loan EMI calculator.

Typical Rate
8.5% – 24%
banks / NBFCs
Max Tenure
3 years
EMI schemes
Max LTV
75%
of gold value
Disbursal
30 – 60 min
walk-in process

Gold Loan Details

₹5.00 L
11.0% p.a.
2 yrs
Monthly EMI
₹23,304
for 24 months · 2 years tenure
Principal
₹5.00 L
89.4%
Total Interest
₹59.3 K
10.6%
Total Payment
₹5.59 L
Over full tenure
Avg Interest/Month
₹2.5 K
Across tenure

Principal vs Interest

Distribution of your total payment

Principal Interest

Yearly Breakdown

Principal and interest paid each year (first 15)

Amortization Schedule

Total Principal
₹5,00,000
Total Interest
₹59,294
Total Amount Paid
₹5,59,294
MonthOpening BalanceEMIPrincipalInterestClosing Balance
1₹5,00,000₹23,304₹18,721₹4,583₹4,81,279
2₹4,81,279₹23,304₹18,892₹4,412₹4,62,387
3₹4,62,387₹23,304₹19,065₹4,239₹4,43,322
4₹4,43,322₹23,304₹19,240₹4,064₹4,24,082
5₹4,24,082₹23,304₹19,417₹3,887₹4,04,665
6₹4,04,665₹23,304₹19,594₹3,709₹3,85,071
7₹3,85,071₹23,304₹19,774₹3,530₹3,65,297
8₹3,65,297₹23,304₹19,955₹3,349₹3,45,341
9₹3,45,341₹23,304₹20,138₹3,166₹3,25,203
10₹3,25,203₹23,304₹20,323₹2,981₹3,04,880
11₹3,04,880₹23,304₹20,509₹2,795₹2,84,371
12₹2,84,371₹23,304₹20,697₹2,607₹2,63,674

Frequently Asked Questions

Banks offer gold loans at 8.5% – 13% p.a., while NBFCs like Muthoot and Manappuram charge 12% – 24% depending on the scheme. Shorter-tenure schemes typically have lower rates.

Gold Loan EMI Calculator — Bank vs NBFC, EMI vs Bullet, and How to Compare

How Gold Loan Eligibility Is Calculated

Before calculating an EMI, your lender determines how much you can borrow against your gold. The formula is straightforward:

Eligibility = Weight (g) × Purity % × Market price per gram × LTV (up to 75%)

Example: 50 g of 22-karat gold (91.6% pure). Gold value = 50 × 0.916 × ₹6,800/g = ₹3,11,440. Maximum loan at 75% LTV = ₹2,33,580.

One important nuance: most banks value your gold at the 30-day average price, not the current spot price. This means a surge in gold prices today does not immediately translate into higher loan eligibility — the benefit filters in gradually over the following month. Plan accordingly if you are timing a gold loan around a price peak.

EMI Scheme vs Bullet Repayment — Which Is Better?

  • EMI scheme: You pay interest plus principal every month. The loan is fully closed at the end of the tenure. Best for borrowers with steady monthly income who want a clean, predictable repayment path.
  • Bullet repayment: You pay only the interest each month; the entire principal comes due at the end. Better for short-term liquidity needs — a farming season, a business inventory cycle, or a receivables gap — where a large cash inflow is expected soon.

This calculator models the EMI scheme. For bullet repayment, your monthly outgo is simply:

Monthly interest (bullet) = (Loan amount × Annual rate) ÷ 12

Bullet example: ₹5 lakh at 11% for 2 years → monthly interest = ₹4,583. Final balloon payment = ₹5 lakh. Total interest paid = ₹1.10 lakh — the same as the EMI scheme, but with a very different cash-flow shape. Choose based on your income pattern, not just the monthly number.

Bank Gold Loan vs NBFC Gold Loan

The single biggest decision in a gold loan is whether to approach a bank or a specialised NBFC. The trade-off is speed vs cost:

  • Banks (SBI, HDFC, ICICI): Rates 8.5–12% p.a., process takes 1–2 days, lower LTV offers typical, better suited for larger amounts and longer tenures.
  • NBFCs (Muthoot, Manappuram): Rates 12–24% p.a., 30-minute disbursal, higher LTV offers available, better for urgent small-ticket needs.

Rate difference in rupees: ₹5 lakh for 1 year. Bank at 10% = ₹44,167 total interest. NBFC at 18% = ₹90,000 — more than double. Unless the urgency is genuine, always exhaust bank options first. The 30-minute convenience at an NBFC can cost you ₹45,000 on a single-year loan.

Gold Loan EMI Calculation Example

₹5 lakh gold loan at 11% p.a. for 2 years (24 months). Monthly rate r = 11 ÷ 12 ÷ 100 = 0.009167.

EMI = 5,00,000 × 0.009167 × (1.009167)24 ÷ ((1.009167)24 − 1)  = ₹23,266 / month

Total amount paid = ₹23,266 × 24 = ₹5,58,384. Total interest paid over 24 months = ₹58,384. Use the calculator above to instantly run this for any loan amount, rate, or tenure.

When Gold Loan Beats Personal Loan

Consider this scenario: you need ₹3 lakh urgently and you own gold. Your two main options:

  • Personal loan at 15% for 3 years: EMI ₹10,400/month. Total interest = ₹74,400.
  • Gold loan at 11% for 2 years: EMI ₹13,925/month. Total interest = ₹34,200.

Despite carrying a higher monthly EMI, the gold loan saves ₹40,200 in total interest. If your cash flow can handle the higher monthly outgo, pledging gold is almost always cheaper than an unsecured personal loan. Use the personal loan EMI calculator to model both options on your exact numbers, then use compare loans to put them side-by-side on total outgo before making a final decision.