How the amount is worked out
Lenders value only the gold in an item. They take the weight, subtract stones, pearls and other non-gold parts, and scale what is left by its purity: 22 carat is 22 parts in 24 pure gold, 18 carat is 18 parts in 24. They multiply that by the price of gold per gram to get the value, then lend a share of it, called the loan-to-value.
The loan-to-value is your lender's own figure and it can depend on the size of the loan, so the calculator asks you to enter it rather than assuming one. The price of gold changes daily and lenders use their own reference price, so the answer is an estimate. The branch valuation decides the real amount.
Indian gold rates are often quoted for 22 carat gold and international prices for 24 carat. Choose which your price is for and the calculator converts it for the purity of your items.
Worked example
50 g of 22 carat jewellery with no stones, at a price of ₹13,000 a gram for 22 carat gold, is worth ₹6,50,000.00. At a loan-to-value of 75% you could borrow up to ₹4,87,500.00, which is ₹9,750.00 for each gram.
To borrow ₹1,00,000 at that loan-to-value you need 10.26 g of this gold. Asking for ₹6,00,000 instead is ₹1,12,500.00 more than the gold supports, and you would need about 11.54 g more of it.
Purity matters. A 40 g item with 12 g of stones is 28.00 g of gold. At 18 carat and a 24 carat price of ₹14,000 a gram, each gram is worth ₹10,500.00, the gold is worth ₹2,94,000.00, and an 80% loan-to-value allows ₹2,35,200.00.
To check the loan-to-value of a loan you have been offered, use the gold loan LTV calculator.
What the estimate leaves out
Lenders may set a minimum loan, deduct the weight of stones on their own scales, or round the purity. They can also lend less than their maximum. Use this page to compare offers and plan how much gold to take, then confirm the figures with the lender.
Rules for gold loans in India are set by the Reserve Bank of India and by each lender, and they change. The page does not apply a rule for you, which is why the price and the loan-to-value are numbers you enter.
If you already know the value of your gold, the gold loan eligibility calculator starts from that.
Inputs for the gold loan amount calculator
Weight of your gold items
The total weight in grams, including any stones. A troy ounce is 31.1035 g.
Weight of stones and other non-gold parts
Stones, pearls and fittings are not valued as gold. Enter 0 if there are none.
Purity (carat)
The carat stamp on the item. 24 carat is pure gold and 22 carat is common for Indian jewellery.
Gold price is quoted for
Choose 22 or 24 carat to match the price you have, and the calculator converts it.
Gold price per gram
Today's price per gram for that purity. The price shown is only an example, so enter the current price.
Loan-to-value your lender offers
The share of the gold's value the lender will lend. Use the figure on your quote.
Loan you would like
The amount you want to borrow. The calculator shows how much gold that needs.
CALCULATOR QUESTIONS
Gold loan amount calculator questions
How is a gold loan amount calculated?
Net weight times purity times the gold price gives the value. The lender then lends a share of that value, its loan-to-value.
Do lenders count the weight of stones?
No. Stones, pearls and other non-gold parts are taken off, so enter their weight separately.
Which gold price should I use?
Use today's price for the purity you choose. Lenders use their own reference price, so the branch valuation can differ.
Can I get the maximum amount shown?
Not always. The result is an estimate, and lenders can lend less than their maximum or set a minimum loan.