Gold Loan Calculator

A gold loan lets you borrow against gold jewelry or coins you already own, using the gold itself as collateral. Because the collateral is easy to value and liquidate, gold loans typically process faster and carry lower rates than unsecured personal loans \u2014 though rates still vary by lender and loan-to-value ratio offered.

Repayment structures vary: some gold loans use a standard EMI (which this calculator models), while others offer interest-only payments with a bullet repayment of principal at the end, or even a single lump-sum repayment at maturity. Confirm which structure your lender is offering before comparing the EMI figure above to their quote.

A ₹2,00,000 gold loan at 10% over 2 years produces an EMI of roughly ₹9,224/month, with total interest of about ₹21,376 — a relatively low cost reflecting gold loans' typically lower rates compared to unsecured personal loans, since the pledged gold reduces the lender's risk.

Because the gold itself secures the loan and can be easily valued and liquidated if needed, lenders take on less risk than with an unsecured loan — which typically translates into a lower interest rate for the borrower, making gold loans a comparatively cheaper borrowing option when you have gold available to pledge.