A gold loan is one of the fastest ways to borrow in India — you pledge gold jewellery or coins and get cash, often within hours, with no income proof needed. But the amount you get isn't the full value of your gold; it's capped by a rule called LTV. Here's the math behind how much you can actually get.
It's based on LTV, not your gold's full value
Lenders give you a loan worth a percentage of your gold's market value — the Loan-to-Value (LTV) ratio. Since 1 April 2026 the RBI sets that ceiling by loan size, for banks and NBFCs alike: up to 85% for loans up to ₹2.5 lakh, 80% for loans above ₹2.5 lakh up to ₹5 lakh, and 75% above ₹5 lakh. So gold worth ₹1 lakh can support a loan of up to about ₹85,000. On a bullet repayment loan the ceiling counts the interest due at maturity as well, so the amount sanctioned is lower.
How the gold is valued
Only the gold content counts — not gemstones — and the value is usually based on a recent gold rate (often an average of the last few days) and the net weight of pure gold, typically assessed at 22K. Gold prices move daily, so put today's rate into the calculator rather than trusting any per-gram example in an article.
Gold Loan Calculator — how much you can getEnter your gold's weight, purity and today's rate to see your eligible loan instantly.
Check these before you take one
Gold loans are quick but carry real interest (often 9–24% depending on the lender), and missing payments risks your gold being auctioned. Compare the interest rate, processing fee and tenure across a bank and an NBFC, and borrow only what you need — a higher LTV means a bigger repayment burden.
Frequently asked questions
- How much loan can I get on 10 grams of gold?
- Up to 85% of its market value, because a loan on 10 grams sits well inside RBI's up-to-₹2.5-lakh band. The rupee figure moves with the daily gold rate, so use the calculator with today's rate for an exact amount.
- What is the maximum LTV on a gold loan?
- It depends on the loan size: 85% for loans up to ₹2.5 lakh, 80% above ₹2.5 lakh up to ₹5 lakh, and 75% above ₹5 lakh, under RBI directions in force since 1 April 2026. Some lenders offer less; the calculator lets you set your lender's figure and applies the RBI ceiling automatically.
- Is gold loan interest high?
- It varies widely — banks are often cheaper (around 9–12%), while some NBFCs charge more. It's usually cheaper than a personal loan because it's secured against your gold, but always compare before borrowing.