🏆 Gold Loan Calculator

How to use Gold Loan amount and EMI Calculator

• Enter Gold weight in grams which you keep as collateral for the loan
• Enter the purity of the gold
• Now Enter the current Price of Gold per gram
• Now enter the interest rate as well as loan tenure
• Click on “Calculate Loan”
• Thus you will get all info about the Loan Amount you can get, Monthly EMI, Total Interest Payable, Total Amount Payable

Gold Loan Amount Formula Explained

Loan Amount = Gold Weight × Gold Rate per Gram × LTV Ratio

Weight of Gold (in grams)

Gold Rate per Gram (₹/gram)

Loan-to-Value (LTV) Ratio (maximum % of gold value you can get as a loan, as set by RBI or lender) standard LTV value is 0.75

Example:

Suppose:

• Gold Weight = 50 grams
• Gold Rate = ₹5,500 per gram
• LTV Ratio = 75% (0.75)

Then, Loan Amount = 50 × 5500 × 0.75 = ₹2,06,250

Thus, you can get a loan of ₹2,06,250 against your gold of 50 gms

EMI Calculation Formula Explained

Here, P, R, and N are the key variables. This means the EMI amount will vary each time you adjust any of these three. Let’s understand them in detail:

P refers to the Principal Amount — the original loan amount provided by the bank, on which the interest is calculated.

R stands for the Rate of Interest determined by the bank.

N represents the Number of Years allotted for loan repayment. Since EMIs are paid monthly, the tenure is converted into the number of months.

(Continuing the above Loan Amount):

Suppose:

• Loan Amount (P) = ₹2,06,250
• Annual Interest Rate = 12%
• Tenure = 1 year (12 months)

1. Monthly Rate (R) = 12 ÷ 12 ÷ 100 = 0.01
2. Tenure (N) = 12 months

Applying the above EMI formula:

EMI = ₹18,235

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