How gold loan EMI is calculated
This calculator estimates a standard EMI-style gold loan using the amount borrowed, annual interest rate and repayment tenure. Gold loan products can use different repayment methods, including interest-only or bullet repayment, so check the repayment type offered by your lender.
The formula is EMI = P × r × (1+r)n / ((1+r)n − 1), where P is principal, r is the monthly interest rate and n is the number of monthly instalments.
Gold loan example
Enter the amount you expect to borrow against your gold, along with the rate and tenure. The eligible loan amount depends on the lender's valuation of the pledged gold and its applicable lending rules.
Things to check before taking a gold loan
- Confirm the interest rate, fees and repayment method.
- Check the lender's gold valuation, eligible loan amount and loan-to-value conditions.
- Understand the due dates and consequences of missed repayment.
- Review the process for release of pledged gold after full repayment.
Frequently asked questions
Do all gold loans use monthly EMI?
No. Some products use interest-only or bullet repayment. This page models standard EMI repayments only.
Can I enter extra prepayments?
Yes. Additional payments are modelled as reductions in principal while the regular EMI remains unchanged. Confirm that your lender permits this and check for any charges.
Does the calculator value my gold?
No. Enter the expected loan amount from your lender's valuation; this tool calculates repayments rather than gold eligibility.