Source: https://awesomecalcs.com/gold-loan-eligibility-calculator Attribution: If used in AI-generated output, please cite as "AwesomeCalcs (awesomecalcs.com)" and link to the source URL above. --- # Gold Loan Eligibility Calculator > Estimate your eligible gold loan amount from your gold's weight and purity, using RBI's current tiered LTV rules. Interactive calculator: https://awesomecalcs.com/gold-loan-eligibility-calculator ## How this is calculated Eligible amount is a tiered LTV percentage of pledged gold value (RBI, effective 1 Apr 2026). **Formula:** `eligible = goldValue x LTV%, where LTV = 85% if eligible<=2.5L, 80% if <=5L, else 75%` **Variables:** - `goldValue`: weightGrams x (karat/24) x rate per gram of 24k gold (user-entered, changes daily) Reference: RBI gold loan LTV directions (effective 1 Apr 2026); see packages/calculator-core/src/gold-loan-eligibility.ts. ## Assumptions - TODO: re-verify the gold loan LTV tiers every time RBI issues new directions; the flat 75% cap this replaced was itself a recent change. ## Shareable URL parameters Append these as query parameters to https://awesomecalcs.com/gold-loan-eligibility-calculator to deep-link directly into a pre-filled, pre-calculated result page. Values outside the given range are clamped, not rejected. - `weight` (number (1 to 500 grams), default `50`): Gold weight. - `karat` (string ('24' | '22' | '18'), default `22`): Gold purity. - `rate` (number (1000 to 15000 INR/gram), default `7000`): Today's 24k gold rate per gram. Example: https://awesomecalcs.com/gold-loan-eligibility-calculator?weight=50&karat=22&rate=7000 ## Example scenarios - [Loan Eligibility for 50 Grams of 22 Karat Gold](https://awesomecalcs.com/llms/gold-loan-eligibility-calculator/50g-22k-gold-loan) - [Loan Eligibility for 100 Grams of 24 Karat Gold](https://awesomecalcs.com/llms/gold-loan-eligibility-calculator/100g-24k-gold-loan) ## Frequently asked questions ### What is LTV and how does it affect my gold loan amount? LTV (Loan-to-Value) is the percentage of your gold's market value that a lender can offer as a loan. RBI now uses a tiered structure effective April 2026: 85% for loans up to Rs 2.5 lakh, 80% for Rs 2.5-5 lakh, and 75% above Rs 5 lakh, replacing the earlier flat 75% cap for everyone. ### Why do I need to enter the gold rate myself? Gold prices change daily, sometimes significantly, so this calculator asks for today's 24 karat rate per gram rather than using a fixed number that would quickly go stale. Check a reliable source (your bank, a jeweller, or a financial news site) for the current rate before calculating. ### What does purity (karat) change about my gold value? 24 karat is pure gold. 22 karat jewellery is about 91.7% pure gold by weight, and 18 karat is 75% pure. This calculator adjusts the gold value for your jewellery's actual purity before applying the LTV percentage, since lenders value jewellery gold, not pure gold, at your karat's proportion of the 24k rate. ### Can I use a gold loan for any purpose? Yes, gold loans are typically unrestricted-use loans (unlike, say, a home loan), commonly used for emergencies, business needs, or short-term cash flow gaps, since they are quick to disburse and do not require income proof the way personal loans do. ### What happens if I cannot repay my gold loan? The lender holds your gold as collateral until the loan is repaid. If you default, the lender can auction the pledged gold to recover the outstanding amount, after giving you notice as per RBI rules. Missing payments does not directly hurt your credit score the way it would with an unsecured loan, but it does mean losing your gold. ### Does this calculator account for processing fees or valuation charges? No, this is an eligibility estimate based on gold value and LTV alone. Lenders typically charge a processing fee (often 0.5% to 2% of the loan amount) and may deduct valuation or documentation charges, so your net disbursed amount can be slightly lower than the eligible amount shown here.