Fast, short-tenure financing against your gold — know the EMI upfront.
A gold loan is secured against the market value of your gold jewelry or coins, which is why approval is fast and interest rates tend to be lower than unsecured personal loans, even though tenures are usually short (typically 6 months to 3 years). Lenders advance a percentage of your gold's value — the loan-to-value (LTV) ratio, capped by RBI regulation at 75% of the gold's value for most lenders — and the EMI is calculated the same way as any other amortizing loan.
Enter the loan amount you're sanctioned, the interest rate offered, and your chosen tenure to see the monthly EMI, total interest, and repayment schedule. Because tenures are short, even a modest interest rate difference between lenders can meaningfully change your total cost — worth comparing before you pledge your gold.
Not all gold loans use monthly EMIs — many lenders also offer a bullet repayment option where you pay only interest monthly (or even quarterly) and repay the full principal at the end of the tenure, or a fully bullet option where both principal and interest are settled together at maturity. This calculator models the standard EMI (principal + interest every month) structure; if your lender offers bullet repayment, your monthly outgo and total interest will differ from what's shown here.
Always confirm which repayment structure your specific gold loan uses, since it changes both your monthly cash flow and the total interest you'll pay by maturity.
For example, a ₹2,00,000 gold loan at 11% annual interest over 3 years comes to an EMI of about ₹6,548 a month, with total interest of roughly ₹35,719 — a total repayment of about ₹2,35,719.
$6,548
$35,719
$235,719
Principal · 85%
$200,000
Total Interest · 15%
$35,719
| Year | Principal Paid | Interest Paid | Balance Remaining |
|---|---|---|---|
| 1 | $59,514 | $19,059 | $140,486 |
| 2 | $66,401 | $12,172 | $74,085 |
| 3 | $74,085 | $4,488 | $0 |
How much can I borrow against my gold?
Most lenders advance up to 75% of your gold's current market value (the RBI-mandated cap for most lenders), based on purity and weight. Enter that sanctioned amount into the calculator to see your EMI.
What happens if I miss a gold loan EMI?
Unlike unsecured loans, gold loans are backed by collateral, so persistent default can lead to the lender auctioning your pledged gold to recover the outstanding amount after the required notice period. Contact your lender immediately if you expect to miss a payment.
Is a gold loan cheaper than a personal loan?
Usually, yes — because it's secured against collateral, a gold loan typically carries a lower interest rate than an unsecured personal loan of similar tenure, though exact rates vary by lender and prevailing gold prices.
Can I close my gold loan early?
Most gold loans allow early closure or partial prepayment, often with minimal or no penalty, since the shorter tenure means the lender recovers the collateral risk quickly. Confirm foreclosure charges with your specific lender.
Does the gold price affect my EMI?
Your EMI is fixed once the loan amount, rate, and tenure are set — it doesn't change if gold prices move afterward. However, the initial loan amount you're offered depends on your gold's value at the time of pledging.