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Bank of Baroda Gold Loan Calculator

Enter how much gold you will pledge, its purity, today's gold rate and the loan-to-value your lender offers. You will see the loan you can get and the interest if you repay in one go.

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Good to know

Independent calculator, not made or approved by Bank of Baroda. Lenders use their own gold valuation, LTV, rate and fees. Results are estimates; the lender's offer is final.

What it does

  • Gold value adjusted for purity (24K, 22K, 18K)
  • Loan amount at the LTV you choose
  • Interest and total to repay for a bullet loan
  • Works for any bank or gold-loan company

How to use it

  1. Enter the weight of the gold in grams and choose its purity.
  2. Enter today's price of 24K gold per gram, the LTV and the interest rate.
  3. Enter the loan period in months and read the loan, the interest and the total.

How is a gold loan worked out?

A lender values only the pure gold in your jewellery. Pure gold is 24K, so 22K gold counts as 22/24 of its weight at the 24K rate. The loan is a share of that value, called the loan-to-value or LTV. RBI sets limits on the LTV, and it can be lower for bigger loans.

This calculator treats the loan as a bullet loan: you pay the simple interest and the principal together at the end. Many banks also let you pay interest monthly, which costs the same in simple interest. Stones, wastage and making charges are not counted by lenders, and the price they use may differ from the market price.

Example

50 g of 22K gold at ₹10,000 a gram for 24K is worth about ₹4,58,333. At 75% LTV the loan is about ₹3,43,750. At 9.5% for 12 months the interest is about ₹32,656, so you repay about ₹3,76,406.

Questions people ask

Is this calculator from Bank of Baroda?
No. It is an independent tool. The lender's own valuation and rate are final.
Which gold price should I enter?
Enter the current price of 24K gold per gram. The lender may use its own rate, so ask for it.
Is gold loan interest simple or compound?
Many gold loans charge simple interest on the amount outstanding, but some charge compound interest or monthly interest. Check your loan terms.

Disclaimer

This tool is for general information only. It is not financial, tax, investment or legal advice, and results are estimates that may differ from your bank, lender or tax authority. Rates, limits and tax rules change. Bank and brand names are used only to describe what the tool does; they belong to their owners and we are not affiliated with them. Check the figures with a qualified professional or your provider before you decide. You use this tool at your own risk, and TheFreeTool is not liable for any loss that follows. Read the full disclaimer

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