Gold Loan Calculator

The Gold Loan Calculator estimates the loan amount you can get by pledging your gold jewelry or coins. It uses the gold's weight, purity’s Loan-to-Value (LTV) ratio to calculate an approximate eligible loan amount.

This tool helps you plan finances, compare offers from lenders, and understand how much you can borrow without giving up more gold than necessary.

The calculation is based on the metal value and the lender’s LTV ratio. Use this formula:

Notes:

• Karat / 24 converts karat purity into a fraction (e.g., 22K → 22/24 ≈ 0.9167).
• Gold Rate should be the current market rate per gram (ask your lender or use a live rate).
• LTV is the percentage of the gold value the lender will lend (commonly up to 75%, but may vary).

Example calculation

Suppose you have 20 grams of 22K gold, the current gold rate is ₹5,500 per gram, and the lender offers an LTV of 75%:

1. Pure metal value = 20 × (22/24) × ₹5,500 ≈ ₹100,833.33
2. Eligible loan = ₹100,833.33 × 0.75 ≈ ₹75,625

So you could expect a loan of roughly ₹75,625 against that gold (subject to lender verification).

What lenders consider

• Purity test: Lenders test purity using XRF machines or other methods for accuracy.
• Weight verification: Gold is weighed in front of you and documented.
• Market rate: Lenders use a current rate (per gram) which may differ slightly from public rates.
• Deductions/adjustments: Some lenders may adjust valuation for certain designs, impurities, or local policies — always confirm the exact valuation method with the lender.