RBI Rules (Updated April 2026)
- •LTV is now tiered by loan size: up to 85% for loans up to ₹2.5 lakh, 80% for ₹2.5–5 lakh, and 75% above ₹5 lakh.
- •Loans under ₹2.5 lakh no longer need income proof, making small gold loans faster to get.
- •Lenders must return your gold within 7 working days of closure or pay ₹5,000/day compensation.
- •Gold purity is valued at 22K standard; 18K and 24K are adjusted proportionally.
- •Typical interest rates range from 9% to 15% per annum across lenders.
The Real Problem This Solves
Pledge your gold at the wrong LTV and a small dip in gold prices can trigger an auction notice on your family jewellery.
People also pick the wrong repayment scheme and get shocked by a huge bullet payment at the end. This calculator applies the RBI's new tiered LTV caps and shows your real eligibility and what you'll actually owe.
How Your Eligible Amount Is Decided
Your loan = gold value × LTV. Gold value depends on weight, purity, and the current rate per gram (around ₹13,000/gram for 22K in July 2026). Since April 2026, RBI caps LTV by loan size: 85% up to ₹2.5 lakh, 80% up to ₹5 lakh, 75% beyond.
Example: Arjun pledges 20 grams of 22K gold at ₹13,000/gram — worth ₹2,60,000. Because his loan falls in the small-ticket tier, he can borrow up to 85%: about ₹2,21,000, with no income documents needed. If he picks a bullet scheme at 11% for 12 months, he repays the principal plus around ₹24,310 interest in one shot at the end.
| Gold Pledged (22K @ ₹13,000/g) | Max LTV (RBI tier) | Eligible Loan |
|---|---|---|
| 20g — worth ₹2.6 lakh | 85% | ≈ ₹2.21 lakh |
| 38g — worth ₹5 lakh | 80% | ≈ ₹4 lakh |
| 77g — worth ₹10 lakh | 75% | ≈ ₹7.5 lakh |
Frequently Asked Questions
What changed in the RBI gold loan rules in 2026?
From April 1, 2026, the flat 75% LTV cap became tiered: loans up to ₹2.5 lakh can go to 85% LTV, ₹2.5-5 lakh to 80%, and only loans above ₹5 lakh stay capped at 75%. Small loans also no longer require income verification, and lenders must return pledged gold within 7 working days of closure or compensate you ₹5,000 per day.
What happens if gold prices fall during my loan?
If the price drop pushes your LTV above your tier's cap, the lender may ask for extra gold or cash, or risk auctioning your pledged gold. Borrowing below the maximum LTV gives you a safety buffer.
Which repayment scheme is cheapest?
Total interest is similar across schemes; the difference is timing. Bullet keeps monthly outgo at zero but needs a large final payment. EMI spreads it evenly. Pick based on your cash flow.
Related Calculators
Got your gold loan eligibility?
If you need a larger or longer-term amount, weigh it against an unsecured option. Compare the cost using our Personal Loan EMI Calculator.
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