Gold loan amount is calculated by multiplying your gold weight in grams by the purity factor and then by the current gold market rate per gram, and then applying the RBI mandated LTV percentage. For example 20 grams of 22 karat gold at Rs 13,453 per gram equals a gold value of Rs 2,69,060. Applying 85 percent LTV for loans up to Rs 2.5 lakh gives an estimated loan of Rs 2,28,701. The actual amount depends on the lender’s gold valuation which may vary slightly from market rate. Use our calculator above for an instant estimate.

The gold loan per gram depends on the current gold market rate and the LTV percentage the lender applies. In September 2026 with 22 karat gold at approximately Rs 13,453 per gram, the maximum loan per gram at 85 percent LTV is approximately Rs 11,435. Most lenders including Muthoot, Manappuram and banks offer similar per-gram amounts since they all follow RBI LTV guidelines. The difference is in the interest rate where banks like Federal Bank and CSB Bank offer lower rates from 8.50 percent compared to NBFCs like Muthoot from 10.90 percent.

Muthoot Finance gold loan interest rates start from 10.90 percent per annum in 2026 for their standard schemes. The actual rate you get depends on the scheme chosen, loan amount, LTV ratio and tenure. Muthoot offers multiple schemes including low rate schemes with higher processing fees, express gold loan schemes with faster processing, and online gold loan schemes at slightly different rates. Always compare the total interest you will pay over the tenure rather than just the headline rate. Visit your nearest Muthoot branch for current scheme rates as they change periodically.

Gold loan is better than personal loan when you have gold available and need money urgently. Gold loans have lower interest rates starting from 8.50 percent versus personal loans starting from 10 percent. Gold loans require no income proof or CIBIL score check making them accessible to self-employed individuals, homemakers and farmers. Gold loans disburse in 30 minutes versus 1 to 7 days for personal loans. However if you do not repay the gold loan your jewellery can be auctioned by the lender. Personal loans are better when you do not want to risk your gold or when you need a longer repayment tenure of 3 to 5 years.

For a gold loan in India you need Aadhaar card as identity and address proof, PAN card (mandatory for all gold loans since 2023 regardless of amount per RBI guidelines), one recent passport photograph, and your gold jewellery for valuation. No income proof, salary slip, bank statement or ITR is required for gold loans at NBFCs like Muthoot and Manappuram. Banks may ask for a bank statement or simple income declaration for larger amounts above Rs 5 lakh. The process is designed to be as simple and fast as possible.

If you cannot repay your gold loan by the due date the lender first gives you a notice and may charge overdue interest at a higher rate typically 2 to 3 percent above your loan rate. If you still cannot repay the lender has the right to auction your pledged gold jewellery to recover the outstanding amount. Any surplus after recovering the loan amount and charges is returned to you. To avoid this situation contact your branch before the due date to request a loan renewal or partial payment arrangement. Most lenders prefer renewal over auction and will work with you to find a solution.

Yes. 22 karat jewellery is the most commonly accepted gold for loans in India and is what most Indian households own as traditional jewellery. Lenders accept gold from 18 karat to 24 karat purity. The loan amount is calculated based on the actual gold content — for 22 karat the gold content is 91.6 percent. Making charges, stones, enamel and other decorative elements are deducted from the weight since only the gold value is considered. Hallmarked BIS certified jewellery gets the most accurate valuation. Non-hallmarked jewellery is tested in branch using a purity testing machine.

Use the gold loan calculator on this page to instantly check your eligibility and calculate interest. Enter your gold weight in grams, select purity, choose your preferred lender and tenure. The calculator applies RBI 2026 LTV rules and shows your estimated loan amount, total interest and monthly interest cost. For exact eligibility visit the lender branch with your gold as the actual loan amount depends on in-branch gold valuation which may differ slightly from market rate. All major lenders including Muthoot, Manappuram and Federal Bank also have calculators on their official websites.