Gold Loan Reality Check
A gold loan is quick money against your jewellery — but you’re pledging gold worth far more than you borrow, and missing repayments can mean it’s auctioned. See the full picture, not just the loan amount. Everything runs in your browser.
Educational maths on your own numbers. It is not advice or a loan offer, and not a prediction. Rates, LTV and charges vary by lender and change — confirm the actual terms before you borrow.
Before you pledge
- You’re risking gold worth far more than the loan. Miss repayments and the lender can auction your jewellery to recover dues — often family gold you can’t replace.
- RBI caps LTV. From April 2026, tiered limits apply: up to 85% on small loans (≤₹2.5L), 80% (₹2.5–5L) and 75% (above ₹5L). A lender offering more than this is a warning sign.
- Borrow only what you need. A bigger eligible amount is not a reason to take a bigger loan — you pay interest on every rupee.
- Watch the extras: processing fees, valuation charges and penal interest add to the headline rate.