Gold Loan LTV Calculator
The Reserve Bank's gold loan rules changed on 1 April 2026, and the ceiling on what you can borrow is no longer one number. It is three, and which one applies depends on how big the loan turns out to be. That circularity is easy to get wrong by hand, and it produces two points where extra gold raises your limit by nothing at all.
Metal only. Leave out stones, and the weight of any non-gold part of the ornament.
Today's rate, from your lender or jeweller. This tool never states a rate, so nothing here goes stale.
Leave blank to see the maximum. Fill it in to see how far gold can fall before you breach.
Enter a gold rate per gram to see what the RBI tiers allow.
Cite this calculator
Using this in an article, a report or a class? Please credit it, and link back so readers can run the numbers themselves.
The Money Decoded. "Gold Loan LTV Calculator (India)." https://themoneydecoded.com/calculators/gold-loan-ltv
The embed drops this calculator straight into your page as a working tool. It is 1980px tall by default and full width, so change the height if your column is much wider or narrower than ours.
What are the three tiers?
Paragraph 19 of the RBI Directions caps the loan-to-value ratio by the size of the loan, not by the size of your gold. For consumption loans from 1 April 2026:
| Loan amount | Maximum LTV |
|---|---|
| Up to Rs 2.5 lakh | 85% |
| Above Rs 2.5 lakh, up to Rs 5 lakh | 80% |
| Above Rs 5 lakh | 75% |
Before this, a flat 75% applied to everyone. The change is genuinely better at the small end, where a borrower can raise the same money against less gold than a year ago.
Where does more gold buy nothing?
At two points, because a band ceiling binds before your gold does. This is the part that is genuinely hard to do in your head, and we could not find another tool or page that shows it.
The 85% band stops at Rs 2.5 lakh. Gold assessed at Rs 2,94,118 already reaches that ceiling, since 85% of it is exactly Rs 2.5 lakh. More gold cannot lift you further inside that band. The 80% band does not open until 80% of your value clears Rs 2.5 lakh, and that needs Rs 3,12,500 of gold. So between roughly Rs 2.94 lakh and Rs 3.13 lakh of assessed value, the maximum loan sits at Rs 2.5 lakh whatever you add to the pledge, and the effective ratio on your gold slides from 85% down to 80%.
The same thing repeats one band up. Between Rs 6,25,000 and Rs 6,66,667 of assessed value the limit is pinned at Rs 5 lakh, and the effective ratio slides from 80% to 75%. The calculator flags both bands when your figures land inside one.
Why does it ask you for the gold rate?
Because a rate printed on this page would be wrong within a day, and a wrong rate makes every number under it wrong too.
The gold loan search results are full of pages carrying today's per-gram rate, which commits whoever publishes them to a daily edit and to being stale in between. That is a lender's business. Asking you for the rate instead means this tool is as current as the figure you were quoted, and never needs updating.
Why do purity and stones matter?
The valuation counts the precious metal only, so a gross weight overstates what you can borrow against.
Gemstones and any non-gold parts of an ornament are excluded before the ratio is applied, and so is purity: 22K is 91.6% gold by weight, so 40 grams of 22K jewellery is 36.64 grams of gold. Making charges you paid on the original purchase do not count either. This is the usual reason a quoted loan comes out below what someone expected from the weight on the receipt.
How far can gold fall before you breach?
Paragraph 20 requires the ratio to hold for the whole tenor, so the cushion you borrow with is a number worth knowing before you sign rather than after.
Your loan balance does not fall when the gold price does. So if you borrow at the ceiling of a band, the very first downward move in the price puts the loan outside it. Borrow less and you buy yourself room. The calculator reports how far the metal value can drop before the ratio leaves its band, and at the maximum that figure is exactly zero.
The Directions stop at requiring maintenance. They do not prescribe a cure period, a notice, or a remedy, which means the consequence of a breach is whatever your loan agreement says it is. That clause is worth finding before you need it.
What this calculator does not do
It does not quote an interest rate, an EMI, or a per-gram lending rate, and it does not compare lenders or suggest one. It does not tell you whether pledging gold is a sensible way to raise money, which depends on what else you could use, what the money is for, and how certain your repayment is. It does not model auction or default consequences. And it assumes a consumption loan, since the tiers in paragraph 19 are written for those; borrowing against gold for an income-generating purpose is assessed on a different basis.
Pair this with the guide
The companion post works through the same Directions by paragraph, including the four provisions the lender pages leave out: RBI Gold Loan Rules 2026: LTV Tiers and the Rs 5,000 a Day Rule.
Frequently asked questions
What is the maximum LTV for a gold loan in India?
It depends on how large the loan is. Paragraph 19 of the Reserve Bank of India (Lending Against Gold and Silver Collateral) Directions, 2025 sets three bands for consumption loans from 1 April 2026: 85% where the loan is up to Rs 2.5 lakh, 80% above Rs 2.5 lakh and up to Rs 5 lakh, and 75% above Rs 5 lakh. The old position was a flat 75% for every loan size. Because the band depends on the loan and the loan is what you are solving for, multiplying your gold value by 85% gives the wrong answer as soon as the result crosses Rs 2.5 lakh, which is what this calculator handles.
Why does more gold sometimes not raise my limit?
Because the band ceiling can bind before your gold does. At an assessed value of Rs 2,94,118 the 85% band gives exactly Rs 2.5 lakh, which is the top of that band. Adding gold cannot push you higher at 85%, and the 80% band does not open until 80% of your value exceeds Rs 2.5 lakh, which needs Rs 3,12,500 of gold. Between those two figures the maximum is pinned at Rs 2.5 lakh, so roughly Rs 18,000 of extra gold changes the answer by nothing. The same happens between Rs 6,25,000 and Rs 6,66,667, where the limit sits at Rs 5 lakh. This calculator flags both bands when you land in one.
How much loan can I get for 10 grams of gold?
Multiply the weight by the purity, then by the current rate for pure gold, then apply the band. Ten grams of 22K is 9.16 grams of gold by weight, because 22K is 91.6% pure, and the loan is worked out on that metal content rather than on what the ornament weighs on the scale. At any realistic rate, ten grams lands well inside the 85% band, so the answer is 85% of the metal value. The reason this page asks you for the rate instead of printing one is that the rate moves daily, and a number published here would be wrong by the time you read it.
What happens if gold prices fall after I take the loan?
Paragraph 20 of the Directions requires the prescribed LTV ratio to be maintained on an ongoing basis throughout the tenor of the loan, not merely at the start. Your outstanding balance does not fall when gold falls, so a drop in the price raises your effective ratio and can carry it past the band ceiling. This calculator reports the headroom, meaning how far the metal value can fall before that happens. Borrow the maximum and the headroom is zero by definition. What the Directions do not state is what a breach triggers, so the remedy lives in your loan agreement rather than in the regulation.
Does the calculator include making charges or stones?
No, and neither does the lender. The valuation counts the precious metal content only, so gemstones, the weight of any non-gold part of an ornament, and the making charges you originally paid are all excluded before the ratio is applied. This is why a loan against a heavy stone-set necklace can come out lower than people expect. Enter the gold weight rather than the gross weight of the piece.
Sources
- Reserve Bank of India, Reserve Bank of India (Lending Against Gold and Silver Collateral) Directions, 2025 (notified 6 June 2025, updated 29 September 2025, effective 1 April 2026; paragraph 19 for the tiered LTV, paragraph 20 for ongoing maintenance through the tenor, paragraph 16 for the per-borrower weight caps), rbi.org.in
- Bureau of Indian Standards hallmarking finenesses used for the purity options: 24K at 99.9%, 22K at 91.6%, 20K at 83.3% and 18K at 75.0%