Short answer: Under RBI’s gold and silver loan directions (in force for new loans from 1 April 2026), lenders can lend up to 85% of your gold’s value for loans up to ₹2.5 lakh, 80% for ₹2.5 lakh to ₹5 lakh, and 75% above ₹5 lakh. For bullet-repayment loans, the interest due at maturity counts towards that limit, so you get less upfront. Use the calculator for your own gold.
Last updated: 12 October 2026. General information, not financial advice. Your lender’s Key Fact Statement (KFS) and loan agreement decide your actual terms.
Gold loan calculator (RBI LTV limits)
Enter today’s 22-carat gold rate from your lender’s website or branch. Figures stay in your browser.
RBI’s gold loan rules that matter to you
| Rule | What it means |
|---|---|
| Loan-to-value (LTV) | 85% up to ₹2.5 lakh; 80% for ₹2.5–5 lakh; 75% above ₹5 lakh |
| Bullet repayment loans | Maximum tenure 12 months; interest due at maturity is included in the LTV |
| Valuation | Gold is valued at 22-carat equivalent, at the lower of the previous day’s closing price or the 30-day average; you can be present during valuation |
| Quantity limits | Up to 1 kg of gold jewellery per borrower across lenders; gold coins up to 50 grams |
| Return of gold | Within 7 working days of full repayment; ₹5,000 a day compensation for delays caused by the lender |
| Auction | Only after due notice; reserve price at least 90% of market value (85% after two failed auctions); any surplus returned to you |
A worked example
Meena pledges 50 grams of 22-carat jewellery when the 22-carat rate is ₹10,000 a gram. Her gold is worth ₹5,00,000. On an EMI loan, the 80% tier applies, so she can borrow up to ₹4,00,000. On a 12-month bullet loan at 12%, interest counts in the LTV, so the upfront loan falls to about ₹3,57,143.
Gold loan vs personal loan
| Gold loan | Personal loan | |
|---|---|---|
| Credit score | Matters less; the gold secures the loan | Central to approval |
| Speed | Often same day | Same day to a few days |
| Rate | Often lower | Higher for low scores |
| Risk | Gold can be auctioned if you do not repay | Collection and credit-score damage |
A gold loan is often the most realistic option for borrowers with a low score. See loans for CIBIL defaulters.
Secured loan calculators: Gold loan · Loan against shares · Loan against mutual funds · Loan glossary
Frequently asked questions
How much gold loan can I get on 10 grams?
Multiply 10 grams by your lender’s 22-carat rate (adjusting for purity), then apply 85% if the loan stays under ₹2.5 lakh. Use the calculator above with today’s rate.
Is the 85% LTV for all gold loans?
No. 85% applies to loans up to ₹2.5 lakh. It falls to 80% up to ₹5 lakh and 75% above that, and bullet loans count interest in the limit.
What happens if gold prices fall?
If your loan rises above the allowed LTV, the lender may ask you to repay part of it or pledge more gold.
Can I pledge gold coins or bars?
Lenders can accept gold jewellery and limited gold coins (up to 50 grams). Primary gold such as bars generally cannot be pledged.
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Disclosure: FundsTiger (Gatimaan Finance Advisors Pvt. Ltd.) is a loan marketplace and lending service provider for RBI-regulated lenders. Aparampaar Finance Pvt. Ltd. (Omozing), one of those lenders, is a related party of FundsTiger. This article is general information, not financial advice. Read your loan agreement and KFS before you decide.