One of the most frequently searched questions in India's gold loan market is: "How much loan can I get on my gold?" The answer depends on four things: the current gold price, the purity of your gold, the Loan-to-Value ratio your lender applies, and whether you are borrowing from a bank or NBFC. This guide gives you the complete 2026 answer with actual calculations using live rates. Start with the gold rate today — it is the key input for your specific loan calculation — and use our gold loan calculator to get a precise figure for your city's current rate.
The RBI LTV Framework: The Rule That Governs How Much You Can Borrow
The Reserve Bank of India sets the maximum Loan-to-Value (LTV) ratio for gold loans — the maximum percentage of the gold's market value that a lender can provide as a loan. The 2026 framework: the standard maximum LTV is 75% — lenders cannot provide more than 75% of the current market value of pledged gold as a loan. Some small-ticket agricultural gold loan schemes may apply higher LTV of up to 85% including accrued interest. This rule applies to all lenders — banks and NBFCs alike. No lender can legally offer you a loan equivalent to 100% of your gold's value.
Gold Loan Per Gram in 2026: Purity-Wise Calculation
At today's published rates and 75% LTV, here is the approximate maximum loan per gram you can get:
- 24K gold (999): ₹15,137/g × 75% = approximately ₹11,353 per gram
- 22K gold (916): ₹13,875/g × 75% = approximately ₹10,406 per gram
- 20K gold (833): ₹12,614/g × 75% = approximately ₹9,460 per gram
- 18K gold (750): ₹11,353/g × 75% = approximately ₹8,514 per gram
These are the maximum theoretical figures at 75% LTV. Actual per-gram loan amounts will be slightly lower because lenders appraise your specific gold's purity through their own assaying process, and market value fluctuates daily. For a precise estimate based on your city's live rate, use our gold loan calculator with the current rate from your city's page: gold rate in Mumbai, gold rate in Delhi, gold rate in Kochi, or gold rate in Bangalore.
Practical Examples: How Much Loan on Your Gold
Let us work through common real-world quantities of 22K gold at today's ₹13,875/gram rate:
- 10 grams 22K: Metal value = ₹1,38,750. Maximum loan at 75% LTV = ₹1,04,062.
- 20 grams 22K: Metal value = ₹2,77,500. Maximum loan = ₹2,08,125.
- 50 grams 22K: Metal value = ₹6,93,750. Maximum loan = ₹5,20,312.
- 100 grams 22K: Metal value = ₹13,87,500. Maximum loan = ₹10,40,625.
Remember: these are the maximum amounts at maximum LTV. Many borrowers choose lower LTV ratios voluntarily — a 60% LTV scheme typically offers significantly lower interest rates than a 75% LTV scheme at the same NBFC.
Bank vs NBFC: LTV and Rate Trade-off
The LTV you actually get depends significantly on whether you borrow from a bank or NBFC:
- SBI (bank): Typically offers 70–75% LTV on standard schemes. Starting interest rate approximately 8.75% p.a. Maximum loan ₹50 lakh. Processing 1–2 business days.
- Muthoot Finance (NBFC): Offers multiple LTV schemes — lower LTV schemes at lower interest rates, higher LTV closer to 75% at higher rates. Rates from approximately 12–22% p.a. depending on scheme. Disbursal in 30 minutes.
- Manappuram Finance (NBFC): Base rate 24% p.a. (scheme rates from 9.90%). LTV up to 75% (85% including interest in some schemes). 3-day grace period on overdue.
Impact of Rising Gold Prices on Loan Eligibility
Gold's price rise in 2025–2026 has a direct positive effect for gold loan borrowers: the same quantity of pledged gold now supports a significantly larger loan. A person who pledged 50 grams of 22K gold in early 2024 (when gold was approximately ₹7,200/gram) received a maximum loan of ₹2,70,000 (at 75% LTV). Today, the same 50 grams supports a maximum loan of ₹5,20,312 — an 93% increase in loan eligibility on the same gold, driven purely by price appreciation. This rising loan eligibility is one of the reasons gold loan disbursements grew substantially in 2025–2026 even without any change in household gold holding patterns.
Documents Required for a Gold Loan in 2026
The document requirement for gold loans is minimal — one of their key advantages over personal loans: government photo ID (Aadhaar card, PAN card, voter ID, or passport); a passport-size photograph (some lenders); and the gold jewellery to be pledged. No income proof, salary slips, bank statements, or ITR is required at most NBFCs. At banks like SBI, larger loan amounts may require basic income documentation. No minimum CIBIL score is required at any major gold loan NBFC. This minimal documentation makes gold loans uniquely accessible to homemakers, farmers, self-employed individuals, and anyone without formal income records. Check gold rate in Jaipur, gold rate in Trichy, or gold rate in Kochi for live rates in the cities with the highest gold loan market penetration.
Repayment Options: Matching the Loan to Your Cash Flow
Gold loans in 2026 offer multiple repayment structures to match different income patterns: EMI (equal monthly instalments, common at banks); interest-only monthly with bullet principal repayment (common at NBFCs — you pay only interest each month and return the full principal at end of tenure); and overdraft (OD) structure (available at some NBFCs — you have a sanctioned limit against your gold and pay interest only on the amount drawn, like a credit line). For agricultural borrowers, seasonal repayment aligned to crop income is available at some banks. Use our gold loan calculator to model the complete EMI or interest cost for your specific loan amount and tenure.
