Like any other loan, borrowers have to pay interest on the gold loan. The interest rate for a 5 Lakhs gold loan for leading gold loan lenders is given in the table below. Also, when you calculate the gold loan cost, you have to consider costs such as processing fees, prepayment charges, and other fees lenders might charge before disbursing your gold loan. So, the cost of 5 lakh gold loans will vary across lenders. To calculate the EMI on the gold loan, you can use the gold loan EMI calculator available online with various financial institutions and marketplaces.

Key Gold Loan Providers in India


Loan amount

Interest rate

HDFC Gold Loan

Rs. 25,000 to Rs. 25 lakhs

7.6% to 17.05%

ICICI Gold Loan

Rs. 50,000 to Rs. 1 crore

10% to 19.8%

AXIS Gold Loan

Rs. 25,000 to Rs. 25 lakhs


SBI Gold Loan

Rs. 20,000 to Rs. 50 lakhs


Muthoot gold loan

Rs. 1,500 onwards

9% to 22%

IIFL Gold Loan

Max 75% of the gold value

9.96% to 27%

Manappuram finance Gold Loan

Rs. 1,000 to Rs. 1.5 crore

12% to 29%

Union gold loan

Rs. 3,000 onwards

7% onwards

Kotak Gold Loan

Rs. 20,000 to Rs. 50 lakhs

12.5% onwards

Bank of Baroda 

Gold Loan

Maximum up to Rs. 25 lakhs

9.75% onwards

A gold loan is a quick way to get a secured loan. However, make sure you pay the dues on time to avoid losing the gold pledged as a guarantee.

Calculating Gold Loan EMI using the Gold Loan EMI calculator

The gold loan EMI calculator takes the interest rate, tenure, and loan amount provided by the user as input. 

Let’s look at the below scenario –

Loan amount – Rs. 5 lakhs

Interest rate – 15%

Tenure – 5 years

The EMI would be Rs. 11,894 per month.

The formula to calculate EMI is P*R*(1+R) ^N/[(1+R) ^N-1] 


P = Principal loan amount

N = Lona tenure in months

R = Monthly interest rate

R = Annual rate of interest/12/100

So, in this example it is calculated as 500000*0.0125*(1+0.0125)60 / [(1+0.0125)]60 – 1) = Rs. 11,894 per month.

Using the above formula is time consuming. The EMI calculator shows the result instantly. 

Key highlights of a gold loan

  1. Secured loans - Gold loans are secured loans that use a gold article as a security.
  2. Interest rates - Gold loan interest rates vary from 7.35% to 29% per annum.
  3. Loan amount - The gold loan amount varies from Rs.1500 to Rs.5 crores.
  4. Repayment period - The repayment period varies from 7 days to 240 months.
  5. Minimal documentation - In most cases, no credit score or income statement is required. Gold loan is sanctioned based on the value of the gold pledged as security.
  6. LTV ratio - The loan-to-value ratio for gold loans is capped by RBI at 75%. This means that you can get a loan worth 75% of the value of the gold pledged.
  7. Usability - Gold loans can be used for a variety of purposes without any restrictions.
  8. Processing time – Gold loans can be processed very fast as there is minimal documentation required.