How this calculation works
Estimate repayment against a manually valued gold pledge. The tool adjusts a 24K-equivalent reference price for entered purity and net gold weight, then checks the requested amount against the entered LTV and its built-in consumption-loan tier limits. For bullet repayment, maturity interest also occupies collateral headroom. An indicative value is not an assay or a live gold-price quote.
Worked example
This example uses illustrative inputs. Your current result is shown above.
Use 24 g of 24K gold and an illustrative ₹5,000/g reference price: assessed value is ₹1,20,000. With 75% entered LTV, a ₹60,000 request, 12% interest and twelve-month bullet repayment, maturity is ₹67,200 and interest ₹7,200. Exposure uses 56% of assessed value; the entered cap allows ₹90,000 exposure, or ₹80,357.14 principal after reserving maturity interest.
Assumptions and limits
- Net gold weight excludes stones and other material. The reference price is manual; the model does not perform lender valuation or ongoing collateral monitoring.
- The model covers consumption-loan LTV tiers and a maximum twelve-month bullet term. Older loans, aggregate borrowing and lender-specific eligibility require the applicable agreement and rules; charges and taxes are excluded.
Questions people ask
Why can bullet repayment reduce the principal limit?
Because principal and maturity interest together count toward the collateral exposure. Reserving room for interest leaves less room for the original advance.
Can I use a jewellery shop’s full invoice value?
No. The estimate uses gold content, purity and an entered reference price. Making charges and stones are not added to collateral value.
What are the model’s consumption-loan LTV tiers?
The built-in RBI directions use maximum LTV of 85% up to ₹2.5 lakh total consumption borrowing, 80% above ₹2.5 lakh through ₹5 lakh, and 75% above ₹5 lakh. A lower entered lender limit still applies.