What is the maximum LTV for gold loans as per RBI?

RBI has set the maximum LTV (Loan-to-Value) at 75% of the gold's appraised value for all banks and NBFCs. This means for â‚¹1L worth of gold, the maximum loan is â‚¹75,000. Some lenders offer lower LTV (65-70%) while offering lower interest rates.

What gold purity is accepted for gold loans?

Most lenders accept 18-24 carat gold jewelry and ornaments. 22-carat is the most common. Gold coins issued by banks (up to 50g per customer) are accepted. Foreign gold coins, gold bars, and unregistered coin forms are generally not accepted.

Do I need a CIBIL score for a gold loan?

No. Gold loans are fully secured by the pledged gold, so lenders don't check CIBIL scores. Even individuals with no credit history, low scores, or past defaults can get gold loans easily. This makes gold loans ideal for emergency credit.

What are the repayment options for gold loans?

Gold loans offer flexible repayment: (1) Regular monthly EMI (principal + interest), (2) Interest-only monthly payments with principal repaid at maturity (bullet), (3) Lump sum repayment of principal + interest at maturity, (4) Overdraft facility where you pay interest only on amount withdrawn. Choose based on your cash flow pattern.

Is my gold physically safe with the lender?

Yes. RBI mandates that all gold loan lenders store pledged gold in insured, audited, dual-control vaults. The gold is sealed in your presence, tagged uniquely, and the net weight is recorded. It's returned in exactly the same condition. Both banks and regulated NBFCs follow these standards strictly.

Gold Loan EMI Calculator

Calculate gold loan monthly EMI, interest charges, and complete repayment schedule instantly.

Loan Amount

$10K$5M

Annual Interest Rate

6%24%

Loan Tenure

1 Mo36 Mo

Monthly EMI

$17,444

Total Interest Payable

$9,327

Total Amount Payable

$209,327

Principal (96%)Interest (4%)

Principal vs Interest

Yearly Breakdown

Amortization Schedule

Year	EMI	Principal	Interest	Balance
Year 1	$209,330	$200,000	$9,330	$0