Knowledge Base

Gold Loan

Loan Amount = Gold Value × LTV Ratio (up to 75%)

Lowest interest rates among unsecured categories: 7-14% from banks, 12-24% from NBFCs.

LTV (Loan-to-Value): RBI caps at 75% of gold's market value.

Quick disbursement: Gold loan can be processed in 30 minutes — fastest loan category.

Bullet repayment option: Pay only interest monthly, repay principal at maturity.

Default risk: If you can't repay, bank auctions your gold — no other assets at risk.

Pro Tip

Gold loan from banks (SBI, HDFC) is 3-5% cheaper than NBFCs (Muthoot, Manappuram). Compare before pledging.

Gold Loan - Complete Guide

Everything you need to know about Gold Loan and how to optimize your financial strategy.

Understanding the Formula

The core calculation is based on:

Loan Amount = Gold Value × LTV Ratio (up to 75%)

Key Concepts & Rules

Lowest interest rates among unsecured categories: 7-14% from banks, 12-24% from NBFCs.

LTV (Loan-to-Value): RBI caps at 75% of gold's market value.

Quick disbursement: Gold loan can be processed in 30 minutes — fastest loan category.

Bullet repayment option: Pay only interest monthly, repay principal at maturity.

Default risk: If you can't repay, bank auctions your gold — no other assets at risk.

Expert Strategy

Gold loan from banks (SBI, HDFC) is 3-5% cheaper than NBFCs (Muthoot, Manappuram). Compare before pledging.

How to use this Calculator?

1. Enter your specific values in the input fields above.
2. The calculator will render instant results as you type.
3. Check the breakdown table for year-by-year projections.
4. Adjust the inputs to see how different scenarios impact the final result.