RISINGRBI, SBI, Muthoot FinanceFebruary 2026Personal Finance
🥇

Gold Loan Rates Drop to 7% — Best Time to Borrow Against Gold

With gold prices at record highs, gold loans offer attractive borrowing options at rates as low as 7%. Banks and NBFCs lend up to 75% of gold value, making it one of the cheapest secured loan options available in India.

Concept Fundamentals
7%
Lowest Rate
SBI gold loan
75%
LTV Ratio
RBI max
0.5-1%
Processing Fee
Of loan amount
6-36 mo
Tenure
Typical range

Ready to run the numbers?

Why: Gold loans are among the cheapest borrowing options, but the EMI, total interest, and processing fees vary significantly between lenders. This calculator helps you compare options and find the most affordable gold loan.

How: We calculate your gold loan EMI using the loan amount (based on gold weight, purity, and LTV ratio), interest rate, tenure, and processing fees. We compare EMIs across lenders and show total interest paid.

Monthly EMI amountTotal interest paid
Methodology
🥇Gold Valuation
Estimates loan amount from your gold weight and purity
📊EMI Breakdown
Principal vs interest split for each payment
💰Lender Compare
Rate comparison across banks and NBFCs
Sources:RBI GuidelinesSBI Gold Loan

Run the calculator when you are ready.

Calculate Gold Loan EMIFind the best EMI plan for your gold loan amount and tenure

Gold Details

Loan Terms

Fees & Repayment

gold_loan_emi.sh
CALCULATED
$ calc_gold_loan --weight=50g --ltv=75%
Gold Value
₹3,89,583
Loan Amount
₹2,92,188
EMI
₹25,349
Total Interest
₹12,006
Share:
Gold Loan EMI
₹25,349/mo
Loan: ₹292,187.5 • Total: ₹304,193.193

⚠️ Gold Price Risk Alert

If gold prices drop, your LTV may exceed the threshold, triggering a margin call

Current Gold Rate
₹8500/g
Margin Call Trigger
₹8,500/g
at 75% LTV
Price Drop Buffer
0%

🏦 Lender Comparison

SBI
Rate: 7.5-8.5%
LTV: up to 75%
Processing: 0.5%
Muthoot
Rate: 9-12%
LTV: up to 75%
Processing: 1%
HDFC
Rate: 8-10%
LTV: up to 75%
Processing: 1.5%
IIFL
Rate: 9.5-15%
LTV: up to 75%
Processing: 1-2%

Principal vs Interest

EMI vs Bullet Repayment Comparison

Loan Amount by LTV

📐 Calculation Breakdown

Gold Value
₹3,89,583
50g × ₹8500 × 92%
Loan Amount (LTV)
₹2,92,188
Gold Value × 75%
Processing Fee
₹2,922
1% of loan
EMI
₹25,349
Standard EMI formula
Total Interest
₹12,006
Total Payment
₹3,04,193

For educational and informational purposes only. Verify with a qualified professional.

Answer Capsule

Gold loan EMI = [P × R × (1+R)^N] / [(1+R)^N - 1]. Bullet = pay interest during tenure, principal at end. LTV 50–75%. Compare EMI vs bullet to choose the right option.

What are the key takeaways for gold loan EMI?

  • • LTV (Loan-to-Value) is typically 50–75%. Higher LTV = more loan but higher risk for the lender.
  • • Gold loans are secured; interest rates are lower than personal loans (7–12% p.a.).
  • • EMI = [P × R × (1+R)^N] / [(1+R)^N - 1]. Bullet = pay interest + principal at end.
  • • Processing fee is usually 1–2% of the loan amount.

What did you know about gold loans?

🇮🇳India's gold loan market is worth over ₹6 lakh crore. Gold is the preferred collateral for quick loans.Source: RBI
📉Gold loan interest rates have fallen. SBI offers ~7.5%, Muthoot ~8.5%, HDFC ~9% (varies).Source: Bank websites
⚖️RBI caps gold loan LTV at 75% to protect lenders from gold price volatility.Source: RBI guidelines
🔄Bullet repayment: pay only interest during tenure, principal at end. Good for short-term needs.Source: Loan products

How does gold loan EMI work?

Gold value = Weight × Rate × (Karat/24). Loan amount = Gold value × LTV%. EMI uses the standard formula: P × R × (1+R)^N / [(1+R)^N - 1], where P=principal, R=monthly rate, N=tenure in months.

EMI Formula

EMI = [P × R × (1+R)^N] / [(1+R)^N - 1]. For bullet: Total = Principal + (Principal × Rate × Years).

What are the expert tips for gold loans?

Compare Lenders

SBI, Muthoot, HDFC, Manappuram — compare interest rates and processing fees.

Shorter Tenure = Less Interest

If you can afford higher EMI, shorter tenure saves interest.

What are the most common gold loan FAQs?

What is LTV in gold loans?

Loan-to-Value. If gold is worth ₹4 lakh and LTV is 75%, you can borrow up to ₹3 lakh.

What is bullet repayment?

Pay only interest monthly; principal at the end. Useful for short-term liquidity needs.

Is gold loan better than personal loan?

Gold loans typically have lower interest (7–10% vs 12–24% for personal loans) and faster disbursal.

What are the gold loan statistics?

50–75%
Typical LTV
7–12%
Interest p.a.
1–2%
Processing
6–36
Tenure (months)

⚠️ Disclaimer: Rates and LTV vary by lender. Default may lead to auction of gold. Verify with the bank/NBFC before availing.

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