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Gold Loan Calculator

Gold Loan Per Gram – SBI, Manappuram, HDFC, Axis, Yes Bank

Last Updated 23rd Sep 2020
Gold Loan per gram ₹ 2,822 to ₹ 3,449
Eligible Age 18 to 75 years
Loan Amount Eligibility ₹ 1,000 to ₹ 2,00,00,000
Lowest Gold Loan Interest Rates 9.90%
  • Today’s gold loan rate per gram is ₹ 3,449 for 22 carat gold, ₹ 3,136 for 20 carat gold and ₹ 2,822 for 18 carat gold
  • Compare and check eligibility online to get best offers on interest rate and gold loan rate per gram
  • RBI has decided to increase the LTV ratio for Gold Loan from 75% to 90% till 31st March 2021. new

Compare Gold Loan Rate Per Gram and Lowest EMI of All Banks

Bank Interest Rate Lowest EMI Per Lakh Eligible Loan Amount for Max Tenure
SBI Gold Loan Eligibility 7.50% Rs. 3,111 Rs. 20 Lakh for 36 months
Muthoot Gold Loan Eligibility 11.99% Rs. 3,321 Rs. 0 for 36 months
Manappuram Gold Loan Eligibility 12.00% Rs. 8,885 Rs. 1 Cr for 12 months
HDFC Bank Gold Loan Eligibility 9.90% Rs. 4,610 Rs. 50 Lakh for 24 months
Yes Bank Gold Loan Eligibility 10.99% Rs. 3,273 Rs. 50 Lakh for 36 months
ICICI Bank 10.00% Rs. 8,792 Rs. 15 Lakh for 12 months
Federal Bank 8.50% Rs. 8,722 Rs. 75 Lakh for 12 months
Canara Bank 7.65% Rs. 8,683 Rs. 10 Lakh for 12 months
Andhra Bank 10.70% Rs. 8,824 Rs. 2 Cr for 12 months
Axis Bank 13.00% Rs. 4,754 Rs. 20 Lakh for 24 months
IndusInd Bank 10.50% Rs. 8,815 Rs. 10 Lakh for 12 months
PNB 8.75% Rs. 8,734 Rs. 10 Lakh for 12 months

Gold Loan Eligibility Calculator

You may be eligible for gold loan in India from one or more banks if you meet the following eligibility conditions:

Eligibility Criteria
Minimum and Maximum Age 21 Yrs – 65 Yrs
Note: However, many banks require minimum age of 23 years
Loan Amount
  • Up to ₹ 2 Cr. Some banks restrict maximum eligibility to ₹ 20 Lakh
  • Interest rates are lower for higher loan amount
Employment Type
  • Salaried and self employed both are eligible
  • Businessmen are increasingly taking gold loans to meet their working capital requirements
  • In fact housewives, senior citizens who are not eligible for other loans because they have no income proofs can easily avail gold loan
Quality of Gold
  • Gold ornaments should range in between 18 to 24 Carats
  • Average gold price of 22 carat gold for the preceding 30 days is adjusted down for purity. So, the price of 20 Carat jewelry can be estimated by multiplying the price of 22 Carat jewelry by a factor of 20/22
  • Banks do not check CIBIL score for granting a gold loan
  • However, your repayment track record for a gold loan is counted towards your CIBIL score and hence, can be instrumental in building your CIBIL score
Gold ornaments that can be used for availing loan
  • Gold bars and coins
  • Gold with 18-24 carat purity
Employment track record and income proofs Banks do not check your job stability or business stability to sanction you a gold loan. Gold loans are granted without income proofs. You only need to submit your basic KYC documents such as address proof, identity proof and Aadhaar card to avail this loan.

Gold Loan rate per gram as per gold purity

Gold Loan calculator calculates the gold loan per gram based on the total weight of jewelry, level of purity, past 30 days average price of 22 carat gold and loan to value offered by your bank. As per today’s gold prices the highest gold loan per gram against 22 carat gold is ₹ 4,599 per gram. Key variables that are required to calculate gold loan rate per gram is past.

  • 30 days average price of 22 carat gold which has to be adjusted down for level of purity before multiplying it with the LTV.
  • In the table below, as on 23rd Sep 2020, the past 30 days average price of 22 carat gold is ₹ 50,325.
Gold Purity Past 30 days average price of gold per 10 grams Maximum LTV Gold Loan per gram of gold
22 carat 50,325 75% 3,397
20 carat 45,750 75% 3,088
18 carat 41,175 75% 2,779

However, you will be eligible for a lesser gold loan per gram of jewelry if you take a loan against 10 gram of 18 carat gold. If you take a loan against 18 carat gold, you will be eligible for a gold loan of ₹ 2,779 per gram of gold at gold as seen in the table above.

If you take a loan against 22 carat gold, you will be eligible for a gold loan rate of ₹ 3,397 per gram

Gold Loan Calculator

Gold loan eligibility is measured in terms of loan per gram of gold or gold loan amount you may get given the value of gold pledged (dependent on price of gold), purity of gold and LTV applied by banks. The price of gold is taken as past 30 days average price of 22 carat gold and loan to value offered by your bank. Your loan amount elgibilty along with the interest rate offered and tenure of the gold loan determines your Gold Loan EMI.

ILLUSTRATION 1: The borrower has 100 gm of gold jewelry. Multiple banks have provided different estimates of gold loan per gram and gold loan interest rate based on their assessment of gold weight, purity and loan to value ratio to be offered to the borrower. Bank X estimates the gold jewelry at 22 carat with a net weight of 75 gm (after deducting the weight of gems and stones). The bank applies a LTV ratio of 70% and offers the loan at an interest rate of 9.90%.

At the lowest gold loan interest rate of 9.90%, the minimum EMI works out to be ₹ 2,531 per lakh loan amount for 4 years.

Bank Y estimates the purity of gold jewelry at 22 carat with a net weight of 90 gm (after deducting the weight of gems and stones). The bank applies a LTV of 90% and offers an interest rate of 29.00%. How do the two gold loan offers compare with each other in terms of loan amount eligibility and hence, Gold Loan EMI

Banks will take average price of gold of last 30 days to estimate the value of the gold to calculate a borrower‘s gold loan eligibility. The current average gold rate per 10 gram is ₹ 51,100.

Bank Gold Loan eligibility Interest rate Monthly EMI
Bank X ₹ 2.95 Lakh 9.90% ₹ 9,508
Bank Y ₹ 3.79 Lakh 29.00% ₹ 15,900

Borrower is eligible for a lower loan amount of ₹ 3.93 Lakh from Bank X for 100 gram of jewelry at a lower interest rate compared to the other bank. Given, lower loan amount and lower interest rate, the borrower has to pay a monthly EMI of ₹ 16,489 from Bank X.

In case of Bank Y, Mr. A is eligible for a higher loan amount of ₹ 4.22 Lakh for 100 gram of jewelry, but he will pay a higher interest rate and hence, a higher EMI on the loan.

Whether Mr. A will take a loan from Bank X or Bank Y depends on the loan amount he is looking for. If the loan amount he is eligible to get from Bank X is suitable to meet his requirements, he may opt for lower interest and hence, low EMI loan. If he is looking for higher loan amount eligibility, it might be suit him to take a loan from Bank Y, even when it comes at higher interest rate.

Gold Loan EMI Calculator

Gold Loan EMI is the amount that you pay every month to the bank or financial institution in order to repay your loan. EMI is composed of both principal amount and interest component. Interest component on your EMI is higher in early months and reduced with each EMI. EMI Calculator helps you to calculate your monthly EMI at desired interest rate for a particular tenure.
MI depends upon loan amount, interest rate and loan tenure

  • Loan amount – If you apply gold loan online for a higher amount, then your EMI will be high
  • Interest rate - Higher jewel loan interest rate leads to high amount of EMI
  • Loan tenure – EMI on gold loan reduces in case of high loan tenure

EMI Gold Loan Scheme with Bullet Repayment Scheme Comparison

ILLUSTRATION 2: Mr. B wants to take a Gold Loan of ₹ 3 Lakh with a tenure of 12 months at an interest rate of 14.5%. He is not sure on how is repayment schedule look like in the case of EMI gold loan scheme and Bullet repayment gold loan scheme. Under the bullet repayment scheme, the borrower has opted for interest only EMIs where he pays monthly EMIs to service his interest expenses and pays the principal component in one go at the end of the loan tenure. Mr. B will end up paying more interest in the bullet repayment scheme, as he is not repaying any principal back to the bank during the loan tenure.

Monthly Payment EMI Scheme (Rs.) Bullet Repayment (Rs.)
Month 1 27,007 3,625
Month 2 27,007 3,625
Month 3 27,007 3,625
Month 4 27,007 3,625
Month 5 27,007 3,625
Month 6 27,007 3,625
Month 7 27,007 3,625
Month 8 27,007 3,625
Month 9 27,007 3,625
Month 10 27,007 3,625
Month 11 27,007 3,625
Month 12 27,007 3,625
Bullet Payment (At end of 12 months) ₹ 3 Lakh
Total Payment ₹ 3.24 Lakh ₹ 3.44 Lakh

Why to opt for a Bullet Repayment Scheme?

  • Saves you from the burden of repaying principal every month
  • Suitable for short tenure gold loans of less than 6 months
  • Helps avail flexible repayment schedule where you can choose to pay interest on the loan as monthly EMIs and the principal payment in one installment at the end of the loan tenure. Some banks also offer the flexibility of paying some portion of principal as part of your monthly payments.

Why not to opt for a Bullet Repayment Scheme?

  • Banks may offer lower LTV and charge higher rate of interest on bullet repayment loans
  • You end up paying higher interest on your bullet repayment loan as it is not a reducing balance loan. Effective rate of interest is higher in a bullet repayment loan even when the quoted interest rate is same as that of EMI Gold Loan.

Why to opt for EMI Gold Loan?

  • EMI option saves you from the burden of repaying whole principal amount at the end of tenure.
  • This repayment option is more suitable for long tenure loans. Though banks and NBFCs offer EMI repayment options on shorter tenure loans as well.
  • These loans can be availed at lower interest rates compared to bullet repayment gold loan.

Why not to opt for EMI Gold loan?

  • You carry a monthly burden of repaying your loan which can be difficult to service especially in short duration loans.


When should you opt for a Gold Loan?

You should opt for a gold loan in following situations:

  • You need the loan on an extremely urgent basis for a relatively short period of time.
  • If you want to avoid extensive paper work or have no income proofs to avail a loan. This loan requires only basic KYC documents.
  • No credit history or CIBIL score required.
  • If you possess gold jewellery that you are willing to hypothecate.
  • If you want to reduce you all-inclusive cost of borrowing. Gold Loans typically carry nil processing fees and pre-payment penalty, thus reducing the overall cost of loan.

When and in what circumstances should I not choose a Gold Loan?

You should not consider gold loan as an option:

  • If you are not comfortable with parting away with your gold jewellery and handover its custody to the bank. Your jewellery is typically kept safe by banks and specialised finance companies such as Muthoot or Manappuram, the only hitch is that you cannot use the jewellery, while it is with the bank.
  • If you are looking for loans of more than 36 months.
  • If you have alternative assets to pledge which may fetch you a lower rate of interest.

How is gold loan interest calculated?

You can calculate the gold loan interest by subtracting the principal amount from the total amount to be paid. The total amount you would pay by the end of tenure can be calculated with the help of an EMI calculator.

How is gold loan EMI calculated?

You can use the EMI calculator to calculate the EMI for your gold loan. The information you would need for using the EMI calculator is the loan amount, rate of interest, and tenure. Using the online calculator is a better option than manual calculation as it has high chances of mistakes.

Gold Loan News - Sep 2020
  • 2020-09-22 : SBI offers up to 2 years repayment relief for home and retail loans
    State Bank of India announced the option to choose either a moratorium of up to 24 months or reschedule the instalments and extend the tenure by a period equivalent to the moratorium granted, for its retail customers. ​​​The bank is aiming to assist the customers amid the COVID 19 and economic slowdown.
  • 2020-09-18 : PSBs overtake private banks in 2020
    Public sector banks overtook private sector banks in offering retail loans like home, personal, gold, car, two-wheeler and education loan along with business and mudra loans. Since December 2019, PSBs overall lending has gone up to 57.7% as of June 2020, which is a jump of as much as 60 bpsover six months. During the same period, the share of private banks in overall lending has come down by 60 bps to 34.4%. The share of total loans outstanding that private banks have lost has been taken over by state-owned lenders.
  • 2020-09-15 : FM introduces Banking Regulation Bill in Lok Sabha
    FM introduced Banking Regulation Bill, 2020 in the Lok Sabha. The law strives to protect the interest of the depositors by bringing co-operative banks under the regulatory framework of RBI.
  • 2020-09-11 : State Bank of India targets 3x growth in retail, MSME gold loans
    SBI is targeting 3x growth in retail loans which includes home, personal, car, two-wheeler and gold loans along with MSME loans. The bank has planned to use YONO, its digital banking platform, to cut down on response time and scale-up activity.
  • 2020-09-11 : SBI to launch online application window for retail recasts
    SBI is planning to launch a portal on its website to enable its customers to apply for the restructuring of loans. Loans include retail loans like home, personal, gold, two-wheeler, and two-wheeler along with business loans. The portal is set for a September-15 launch; it will allow borrowers to ascertain their eligibility for recast in two to three days. SBI adds a security feature to its debit cum ATM cards
*Terms and conditions apply. Credit at sole discretion of lender subject to credit appraisal, eligibility check, rates, charges and terms. Information displayed is indicative and from collected from public sources. Read More
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