Gold Loan
Gold Pledge Interest Calculator
Calculate total interest due on a gold-pledged loan. Enter the loan amount, monthly interest rate, and loan tenure.
- Principal
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- Total Interest
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- Total Repayment
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- Monthly Interest
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- Effective Annual Rate
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Frequently Asked Questions
What is a gold pledge loan?+
A gold pledge (or gold pawn) is a short-term secured loan where gold jewelry or coins are pledged as collateral. Common in India, Southeast Asia, and the Middle East.
How is interest calculated on a gold pledge?+
Simple interest: Interest = Principal × Monthly Rate × Tenure. This calculator uses flat-rate (non-reducing) interest common in pawn/pledge products.
What is the difference between gold loan and gold pledge?+
Gold loans (from banks/NBFCs) use reducing-balance EMI. Gold pledges (pawnbrokers/jewelry stores) typically use flat interest rates with bullet repayment.
What is the typical interest rate for gold pledges?+
1–3% per month (12–36% per year) for pawn shops. Banks and NBFCs offer lower rates (7–18% per year) for gold loans.
What is the effective annual rate (EAR) on a pledge?+
EAR = (1 + monthly rate)^12 − 1. A 1.5% monthly rate = EAR of 19.56%, significantly higher than the stated 18% annual rate.