How much can I borrow against my gold?
The maximum a lender could advance against your gold under the tiered ceilings, and why borrowing less than the maximum is worth considering.
Estimated maximum loan
Maximum loan at the applicable ceiling
$4,833
Ceiling applied: 75%
- Fine gold content
- 45.84 g
- Estimated value of your gold
- $6,444
Room to absorb a price fall
At the maximum, a 20% fall in gold takes the ratio to about 94%. Borrowing 60% of the value instead leaves the ratio at about 75% after the same fall.
| Borrow this share instead | Loan amount | Ratio after a 20% price fall |
|---|---|---|
| 50% | $3,222 | 63% |
| 60% | $3,866 | 75% |
| 70% | $4,511 | 87% |
ⓘ An estimate based on market gold prices. Your lender will value your gold at its own assessed purity using published reference prices, deduct stones and fastenings, and apply its own credit checks — the amount actually offered is usually lower. Nothing entered here is stored or sent anywhere.
This shows a regulatory ceiling, not an offer or an eligibility decision. No lender or loan product is recommended here.
Tiered loan-to-value, explained
| Up to ₹2.5 lakh | 85% |
| Above ₹2.5 lakh and up to ₹5 lakh | 80% |
| Above ₹5 lakh | 75% |
These rules apply to lending regulated by the Reserve Bank of India. They do not apply to gold loans in Pakistan, the Gulf or other markets.
How to reduce margin call exposure
The ceiling is a maximum, not a target. Borrowing at the ceiling means any fall in the gold price puts the loan above it immediately; borrowing below leaves room to absorb a correction without anything being asked of you.
- Borrow below the maximum. On a loan at the 75% ceiling, a 10% fall in gold takes the ratio to about 83%. Borrowing at 60% instead, the same fall reaches only about 67%.
- An EMI structure reduces the outstanding balance every month, so the cushion grows over the life of the loan rather than staying flat.
- A shorter loan spends less time exposed to price movement, though it demands more cash flow each month.
- Keep the valuation certificate from your pledge. It is the only reliable basis for checking your own ratio later, and it is what makes an estimate like ours meaningful.
- If prices have moved a long way, ask your lender for your current ratio before they contact you. There is no downside to knowing early.
Guide by Priya Venkataraman·Senior Gold Markets Analyst·Last updated April 2026How lenders value your gold
The directions fix a single valuation basis, which removes most of the variation that used to exist between lenders. Gold is valued at the reference price for its actual purity, taking the lower of the average closing price over the preceding 30 days and the closing price on the preceding day, as published by the India Bullion and Jewellers Association or a SEBI-regulated commodity exchange (para 17). Taking the lower of the two is deliberately conservative: after a price run-up, the 30-day average holds the valuation down.
Sources and verification
Every figure on this page is taken from the text of the circular below rather than from secondary reporting, and paragraph numbers are cited inline so each one can be checked at source. Where the circular leaves something to individual lender policy, we say so instead of filling the gap.
Source: RBI/2025-26/47 DOR.CRE.REC.26/21.01.023/2025-26, issued 2025-06-06, effective 2026-04-01.
Last verified: 2026-08-06
Read the circular on rbi.org.in→General information only, not financial or legal advice. Regulations are summarised, not reproduced in full — read the circular for the authoritative text, and speak to your lender about how it applies to your loan.