Gold Loan Calculator
Determine how much you can borrow against gold jewelry or bullion. Input gold weight, karat purity, and current market price to calculate regulatory collateral value and monthly interest costs.
Net weight of gold excluding stones
Hallmarked gold purity standard
Current spot price for 24K pure gold
Lender lending cap percentage (standard 75%)
Lender annual borrowing rate
Repayment period in months
Maximum cash advance allowed under LTV cap
How to Use This Calculator
- Enter the net weight of hallmarked gold in grams.
- Select purity in karats (e.g. 22K for standard jewelry).
- Provide current 24K market spot price per gram.
- Check your loan-to-value limit and annual interest rate.
- View your maximum eligible borrowing amount and monthly charges.
Formula & Calculation Methodology
Collateral is priced by adjusting spot 24K price by karat fineness, multiplied by authorized LTV limit.
Worked Example
50 grams of 22K gold at $75/g spot price with 75% LTV at 9.5% interest
Frequently Asked Questions
How is 22K gold valued against pure 24K gold?↓
22K gold contains 91.67% pure gold (22/24), so its collateral valuation is 91.67% of the prevailing 24K market spot price.
Are stones and gems included in gold loan valuation?↓
No, lenders deduct the weight of precious stones, gems, or enamel before calculating net eligible gold weight.
What happens if gold prices decline sharply during the loan?↓
If falling gold prices cause your outstanding debt to exceed statutory LTV caps, lenders may issue a margin call requesting partial repayment.
What repayment options exist for gold loans?↓
Common structures include regular monthly EMIs, monthly interest service with bullet principal repayment, or full bullet repayment at maturity.
Related Calculators
Source Citation & Disclaimer
Informational tool only; not licensed tax, legal, or financial advice.