Gold Loan & Per Gram Loan Eligibility Calculator

Calculate maximum gold loan eligibility across 24K, 22K, 18K and 14K gold with RBI 75% Loan-to-Value (LTV) regulatory cap. Compare SBI, Muthoot, and HDFC interest EMIs.

Interactive Gold Loan & Per Gram Loan Eligibility Calculator
Loading calculation engine directly in your browser...

Formula & Calculation Methodology

Market Value = Gold Weight (g) × (Karat / 24) × 24K Rate. Maximum RBI Loan Eligibility = Market Value × 75% LTV.

Loan_{Eligible} = Weight \times \frac{Karat}{24} \times Rate_{24K} \times 0.75

Step-by-Step Worked Example

Gold Weight: 35 Grams | Purity: 22 Karat (91.6%) | 24K Rate: ₹7,400/g | LTV: 75%

  1. 1. Effective 22K Rate = ₹7,400 × (22 / 24) = ₹6,783.33/g
  2. 2. Total Gold Market Value = 35 × ₹6,783.33 = ₹2,37,417
  3. 3. RBI 75% LTV Sanction Cap = ₹2,37,417 × 0.75 = ₹1,78,063
  4. 4. Sanction Value Per Gram = ₹1,78,063 / 35 = ₹5,087.50/g
  5. 5. Monthly Interest @ 10.5% p.a. = (₹1,78,063 × 0.105) / 12 = ₹1,558/month
Result: Market Value: ₹2,37,417 | Max Loan Sanction: ₹1,78,063 (₹5,088/g) | Monthly Interest: ₹1,558

Understanding RBI Guidelines on Gold Loan LTV Cap

The Reserve Bank of India (RBI) mandates a maximum Loan-to-Value (LTV) ratio of 75% on gold jewellery loans disbursed by scheduled commercial banks (SBI, HDFC, ICICI, PNB) and non-banking financial companies (Muthoot Finance, Manappuram).

Only the net gold weight is appraised - gemstones, diamonds, and wax weight are deducted prior to calculating the loan sanction value.

Frequently Asked Questions

What is the maximum loan given per gram of 22K gold?

Depending on prevailing bullion rates and the 75% LTV limit, banks and NBFCs sanction between ₹4,800 to ₹5,400 per gram for 22 Karat hallmarked gold ornaments.

What is the difference between Bullet Repayment and Regular EMI in Gold Loans?

In Bullet repayment, you only pay monthly interest during the loan tenure and repay the principal at the end. In regular EMI, each monthly installment reduces both principal and accrued interest.

Related Tools & Calculators

Gold Jewellery Price & Making Charges CalculatorEMI CalculatorEMI Calculator