RBI 75% LTV Statutory Cap Sovereign Gold Valuation EMI vs Bullet Repayment

Gold Loan EMI & Bullet Repayment Calculator

Estimate your maximum eligible loan amount against pledged gold ornaments based on weight, purity, and RBI 75% LTV regulations. Compare Regular Monthly EMI vs Monthly Interest-Only vs Pure Bullet Repayment.

Popular Gold Pledge Presets:

Gold & Loan Details

Net Gold Weight (excluding stones) 50 Grams

grams

Gold Karat Purity

18K (75%) 22K (91.6%) 24K (99.9%)

Current 24K Gold Rate / Gram ₹7,200 / g

₹

Loan to Value (LTV Ratio) 75% (Max RBI Limit) RBI permits maximum 75% LTV. Choosing 60%–70% buffers against price dips.

Interest Rate (% p.a.) 9.5% p.a.

Loan Tenure (Months) 12 Months

Max Eligible Loan Amount (75% LTV)

₹2,47,320

Total Gold Market Valuation

₹3,29,760

Monthly EMI Scheme

₹21,686 / mo

EMI Scheme Total Interest

₹12,912

Bullet Repayment Interest (At End)

₹23,495

Loan Amount vs Customer Margin Equity

Repayment Schemes Comparison

Repayment Option	Monthly Commitment	Principal Repayment	Total Interest
Scheme A: Regular Monthly EMI	₹21,686 / mo	Monthly along with EMI	₹12,912
Scheme B: Monthly Interest-Only	₹1,958 / mo	100% Principal at Maturity	₹23,495
Scheme C: Bullet Repayment (At End)	₹0 / mo	Full Loan + Interest at End	₹23,495
Scheme D: Gold Overdraft / Credit Line (60% Utilized)	₹1,175 / mo	Flexible anytime repayment	₹14,097

EMI Scheme Saves ₹10,583 vs Bullet

Because monthly reducing EMI pays down principal each month, you pay nearly 45% less total interest compared to 12-month Bullet Repayment.

Cash-Flow Arbitrage

Bullet Repayment vs Monthly Interest Servicing

Maturity Cliff Risk: Moderate

In Bullet Repayment, zero monthly servicing frees cash flow for working capital. However, 100% of principal + accrued interest is due on a single day. Test whether your business reinvestment ROI (12%–24%) beats the maturity cliff shock.

Business Reinvestment ROI / Working Capital Margin

Monthly Cash Retained (Liquidity Freed)

Bullet Cash Freedom: ₹1,958 / month

Total Cash Retained:

₹23,495

Over loan tenure

Reinvestment Gain:

+₹2,215

Net Business Surplus

Day 1 Maturity Cliff:

₹2.71 Lakh

100% Due at Once

Default Risk Score:

5.5 / 10

Auction Notice Risk

Deploying freed monthly interest into business inventory generates net economic surplus, provided you ringfence funds for the maturity balloon cliff.

RBI 75% Regulatory Margin Call & Gold Price Crash Stress-Test RBI 75% LTV Cap

Simulates gold market price corrections (-5%, -10%, -15%, -20%) against your loan to identify regulatory margin call breaches and mandatory top-up requirements.

Price Drop	Stressed Rate	Stressed Valuation	Effective LTV	RBI Status	Cash Top-Up Required

Evaluating stress test parameters...

How Gold Loans Work in India (RBI 2026 Guidelines)

Gold loans in India represent one of the fastest ways to raise liquidity without income proofs or credit score hurdles, as the loan is 100% collateralized by gold jewellery or bank-issued gold coins.

RBI 75% LTV Rule

Under RBI guidelines, lenders can advance up to 75% of the average gold price of the preceding 30 days. Precious stones, pearls, and making charges are strictly excluded from valuation.

Margin Calls & Price Drops

If gold market prices drop sharply during your tenure, your outstanding loan might exceed 75% of collateral value. The lender may issue a margin call requesting partial repayment or extra gold pledge.

Bullet Repayment Limits

RBI permits the Bullet Repayment facility (paying both principal and interest at maturity) strictly for loans with a maximum tenure of 12 months. For tenures exceeding 12 months, regular EMI or monthly interest servicing is mandatory.