Question 1

How is the gold loan amount calculated?

Accepted Answer

Lenders value your gold by its pure metal content (weight × purity × current 24K rate) and then lend a percentage of that value, called the loan-to-value (LTV) ratio. The RBI caps gold-loan LTV at 75%, so on ₹1,00,000 of gold value you can typically borrow up to ₹75,000.

Question 2

What is a good interest rate for a gold loan?

Accepted Answer

Gold loan interest rates in India usually range from about 8% to 24% per year depending on the lender, scheme and tenure. Banks tend to offer lower rates than NBFCs. Compare the EMI and total interest before choosing.

Question 3

Does this calculator use live gold rates?

Accepted Answer

Yes. The 24K rate used for valuation comes from our live indicative feed, so your loan estimate reflects today's gold price.

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