Loans & EMI

    Gold Loan Calculator

    Calculate gold-loan EMI, total interest and payout across bullet or EMI repayment.

    Inputs
    %
    years
    Result
    Monthly Gold Loan EMI
    ₹13,982
    • Principal₹3,00,000
    • Total Interest₹35,576
    • Total Payment₹3,35,576
    • Tenure24 months
    • Interest Rate11%

    You will pay ₹13,982 every month for 24 months. Total interest cost: ₹35,576 (11.86% of principal).

    Principal vs Interest
    Step-by-step calculation
    1. Monthly rate r = 11 / 12 / 100 = 0.009167
    2. Number of months N = 2 × 12 = 24
    3. EMI = P·r·(1+r)^N / ((1+r)^N − 1) = ₹13,982
    4. Total payment = EMI × N = ₹3,35,576
    5. Total interest = Total − Principal = ₹35,576
    Detailed Breakdown
    YearPrincipal PaidInterest PaidBalance
    1₹1,41,796₹25,992₹1,58,204
    2₹1,58,204₹9,584₹0
    How this is calculated
    EMI = P × r × (1 + r)ᴺ / ((1 + r)ᴺ − 1)
    • P = principal, r = monthly interest rate, N = total months.
    • Uses the reducing-balance method used by all Indian banks and NBFCs.
    • Total interest = EMI × N − P.
    Written by Taxpex CA Team
    Chartered Accountants (ICAI) · Reviewed by Taxpex Editorial Board
    Last updated 10 Nov 2025
    When to use this

    Is this the right calculator for you?

    • Short-term liquidity (3–12 months) without breaking long-term investments.
    • Working capital for a small trader or shop owner against family gold.
    • Emergency medical / education spend when PL rates are prohibitive.
    Overview

    Understanding the Gold Loan

    Gold loans are secured by physical gold jewellery / coins at 75% LTV (RBI cap). Rates start at 8.5% p.a. (banks) and go up to 24% (NBFCs like Muthoot, Manappuram). Tenures are typically 3–36 months with bullet, EMI or interest-only repayment. Ideal for short-term working-capital or emergency needs at rates far below unsecured PLs.

    Worked examples

    Real-world scenarios, step-by-step

    ₹5 L gold loan @ 11% for 12 months

    Trader needs festive-season working capital.

    • EMI ≈ ₹44,193/month | Total interest ≈ ₹30.3 K
    EMI ≈ ₹44,193 for 12 months.
    Rates & reference

    Gold-loan rate matrix

    LenderRateLTVTenure
    PSU banks8.5–10%up to 75%up to 36 mo
    Private banks9–12%up to 75%up to 24 mo
    NBFC (Muthoot/Manappuram)12–24%up to 75%3–24 mo
    Pro tips

    Common mistakes to avoid

    Ignoring processing fees (0.25–2%) and valuation charges.

    Bullet repayment at NBFC rate — 24% for 6 months = 12% straight fee.

    Need a CA to review your numbers? Book a free consult — we'll double-check within 24 hours.

    CA insights

    Expert tips from senior CAs

    • Prefer PSU banks for tenures >6 months, NBFCs for <90 days quick liquidity.

    • Split gold across 2 loans if possible — reduces auction risk on default.

    Frequently asked questions

    How is a gold loan EMI calculated?+

    EMI is computed using the standard reducing-balance formula: EMI = P × r × (1+r)^N / ((1+r)^N − 1), where P is the principal, r the monthly interest rate and N the tenure in months.

    Does this include processing fees or GST?+

    No. Processing fees, insurance, GST on fees and stamp duty are excluded and vary per lender. Add them separately to arrive at the true cost of the loan.

    Can prepayment reduce my interest?+

    Yes. Any principal prepayment reduces the outstanding balance and therefore future interest. Prepaying earlier in the tenure saves the most interest.

    Keep exploring

    People also ask

    How is a gold loan EMI calculated?+

    EMI is computed using the standard reducing-balance formula: EMI = P × r × (1+r)^N / ((1+r)^N − 1), where P is the principal, r the monthly interest rate and N the tenure in months.

    via Gold Loan Calculator
    How is this loan EMI calculated?+

    EMI is computed using the standard reducing-balance formula: EMI = P × r × (1+r)^N / ((1+r)^N − 1), where P is the principal, r the monthly interest rate and N the tenure in months.

    via EMI Calculator
    Does this include processing fees or GST?+

    No. Processing fees, insurance, GST on fees and stamp duty are excluded and vary per lender. Add them separately to arrive at the true cost of the loan.

    via EMI Calculator
    How is a personal loan EMI calculated?+

    EMI is computed using the standard reducing-balance formula: EMI = P × r × (1+r)^N / ((1+r)^N − 1), where P is the principal, r the monthly interest rate and N the tenure in months.

    via Personal Loan Calculator
    Does this include processing fees or GST?+

    No. Processing fees, insurance, GST on fees and stamp duty are excluded and vary per lender. Add them separately to arrive at the true cost of the loan.

    via Personal Loan Calculator

    Cite this page

    This dataset is free to reference in articles, research and reports. Attribution to Taxpex Consultancy is all we ask. Data last verified 31 July 2026.

    Citation (APA)
    Taxpex Consultancy. (2026). Gold Loan Calculator — Taxpex. Retrieved from https://taxpex.com/tools/loans-emi/gold-loan-calculator
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