To understand how a gold loan EMI is calculated using a gold loan calculator online, consider a borrower who pledges gold ornaments to avail a short-term loan. The EMI depends on the loan amount, interest rate, and repayment tenure. The standard calculation follows the EMI formula used for term loans:
EMI = [P × R × (1+R)^N] / [(1+R)^N – 1],
where P is the loan amount, R is the monthly interest rate, and N is the number of months.
As an example, consider a loan amount of ₹3 Lakh with the following estimates.
| Particulars | Value |
|---|---|
Interest Rate |
12% per annum (1% monthly) |
Tenure (N) |
12 months |
Monthly EMI (approx.) |
₹26,610 |
Total Repayment |
₹3,19,323 |
Total Interest Payable |
₹19,823 |
This example shows how tenure and interest rate directly influence the EMI and total repayment amount. Shorter tenures usually result in higher EMIs but lower overall interest.
Here are the top lenders providing gold loans on Bajaj Markets in 2026:
| Lender Name | Max Gold Loan Amount | Minimum Interest Rate |
|---|---|---|
Indiagold Gold Loan |
igglmaxamt |
igglminint |
Bajaj Finserv Gold Loan |
bflglmaxamt |
bflglminint |
Rupeek Gold Loan |
rupglmaxamt |
rupglminint |
Muthoot FinCorp ONE Gold Loan |
mufcglmaxamt |
mufcglminint |
IIFL Finance Gold Loan |
iiflglmaxamt |
iiflglminint |
Fedfina Gold Loan |
fedfinaglmaxamt |
fedfinaglmint |
Disclaimer: The mentioned rates are subject to change at the lender’s discretion.
Gold loan interest is typically calculated using the simple‑interest method, where the lender multiplies the loan amount, the annual interest rate, and the tenure in years. The method involves:
Identify the sanctioned loan amount, the agreed‑upon annual interest rate, and the repayment period.
Apply the formula: Interest = (Loan Amount × Interest Rate × Tenure) ÷ 100.
For monthly interest, divide the annual rate by 12 and adjust the tenure accordingly.
Many lenders also provide an online gold‑loan calculator to estimate interest and EMIs quickly.
Alternatively, you can use the online gold loan interest rate calculators available on Bajaj Markets.
Here’s why Bajaj Markets is the ideal financial marketplace for a gold loan:
Compare & Choose: Bajaj Markets offers access to multiple gold loan providers, ensuring you find the best gold loan interest rates and loan terms in one place.
Seamless Online Application: Apply for a gold loan via the Bajaj Markets app or website in minutes, with minimal paperwork and get instant approval.
100% Transparency: Get clear information on the loan terms and upfront fee disclosure for a stress-free borrowing process
Safe & Secure Loan Process: Enjoy a safe and secure online loan process, ensuring complete peace of mind
The amount you can borrow against your gold depends on several key factors. Here’s what influences the gold loan amount:
Gold Purity & Weight
Lenders offer loans based on the karat value (18K-24K) and net weight of the pledged gold. Higher purity results in a higher loan amount.
Loan-to-Value (LTV) Ratio
According to RBI guidelines, lenders can offer a loan amount of up to 75% of the gold’s current market value. The exact LTV may vary based on lender policies.
Gold’s Market Price
Daily fluctuations in gold rates impact the loan amount. A higher gold price means you can secure a higher loan value.
Lender’s Policies
Different banks and NBFCs have varying gold loan eligibility criteria and valuation methods, which may influence the final approved amount.
Repayment Tenure & Type
Some lenders offer higher loan amounts for shorter tenures on gold loans or specific repayment structures, such as bullet payments.
So, before you apply for a gold loan, conduct thorough research and use tools like the online gold loan calculator. This will help you make an informed decision as per your financial situation and requirements.
Using a gold loan calculator simplifies repayment planning by estimating your monthly instalments and total interest payable over the chosen tenure. It allows you to compare different loan amounts, interest rates, and repayment periods so you can select a schedule that aligns with your income and financial goals, helping you avoid over‑borrowing and manage cash flow more confidently.
The calculation results are based on the values you enter in the calculator. Your EMI amount (including the actual interest amount charged) will depend on the prevailing rates. The results are neither certified nor guaranteed. The repayment schedule presented is for illustration purposes. Confirm
the values with your lender prior to applying for the gold loan.A gold loan calculator is an online tool that estimates your eligible loan amount, EMI, and total repayment based on gold weight, purity, interest rate, and tenure. It helps borrowers plan repayments before applying.
You can calculate a gold loan value by multiplying the gold weight with the current per-gram rate, applying the lender’s LTV ratio, and then estimating EMI using the interest rate and selected tenure.
A gold loan calculator provides an indicative estimate based on entered values. The final loan amount depends on physical gold verification, prevailing gold rates, and the lender’s internal valuation and policies.
No, the gold loan calculator does not consider daily market fluctuations. It provides an estimated loan amount based on the entered gold weight, purity, and LTV ratio set by lenders. The actual loan amount may vary depending on the prevailing gold price at the time of evaluation.
Lenders determine the loan amount based on gold purity, net weight, and the LTV ratio. The exact loan value is finalised after the gold is physically evaluated and verified by the lender.
Gold loan interest is calculated on the sanctioned loan amount using the applicable annual rate and tenure. Depending on the scheme, interest may be charged monthly, quarterly, or at loan maturity.
The amount of gold required for a loan of ₹1 Lakh depends on the current market price of gold and the lender's loan-to-value (LTV) ratio. For instance, to borrow a loan of ₹1 Lakh, you may need to provide approximately 17.82 grams of gold to the lender as collateral, as per current market rates.
As per RBI guidelines, you can borrow up to 75% of your gold’s appraised value. To understand this better, let’s assume that the value of 1 gram of the gold you mortgaged amounts to ₹8,000. In this case, the bank may allow you to borrow up to ₹6,000. So, to check the maximum loan amount you can get, use the following formula:
Loan amount = weight of gold (in grams) x gold price per gram x LTV ratio
To calculate gold loan amount, multiply the current gold price per gram by the purity factor and the lender’s LTV ratio (up to 75% as per RBI rules). This gives you the loan amount per gram; multiply that by the total gold weight to get your eligible loan amount.