Gold Loan vs Personal Loan Calculator
Side-by-side EMIs, fees and total cost for both routes, plus a check on whether your gold covers the amount at the RBI loan-to-value cap.
LTV check built in Total cost comparison Bank vs NBFC context
Loan amount neededRs. 3,00,000
Tenure24 months
Gold you can pledge60 grams
Gold loan terms
Interest rate11% p.a.
Processing fee0.5%
Personal loan terms
Interest rate15% p.a.
Processing fee2%
Gold loan (cheaper)
EMIRs. 13,982
Total interestRs. 35,576
Processing feeRs. 1,500
Total costRs. 37,076
Personal loan
EMIRs. 14,546
Total interestRs. 49,104
Processing feeRs. 6,000
Total costRs. 55,104
The gold loan saves you Rs. 18,027 over 24 months. Your 60 grams (worth about Rs. 4,20,000) comfortably covers the amount. The trade-off: your gold sits in the lender's vault, and if gold prices fall sharply the lender can demand partial repayment or additional pledge.
KharchaUdhar Insider Tip Bank gold loans run 3 to 6 percentage points cheaper than gold loan NBFC branches for the same pledge, but NBFCs disburse in 30 minutes versus a bank's 1 to 2 days. Also check the interest method: many gold loans use bullet repayment where interest compounds if unpaid monthly, which can push the effective rate 150 to 250 basis points above the quoted one.
Gold valued at approximately Rs. 7,000 per gram of 22 karat; update mentally for current prices. RBI caps gold loan LTV at 75%. Both loans modelled as EMI on reducing balance. Indicative only.
KharchaUdhar Insider Tip Ask any gold loan lender one question before signing: is interest charged monthly on EMI, or as a bullet at the end? Bullet schemes quietly compound unpaid interest, pushing the effective rate 150 to 250 basis points above the quoted one, and they are the default at most gold loan NBFC branches because the EMI version earns them less.