Free tool
Gold loan interest calculator
The way Indian counters actually quote it — rate per ₹100 per month. Pick the amount, rate and months; the interest updates instantly.
₹50,000
Interest per month
12 months
Simple interest, the way registers quote it. Inside GoldKhata this follows your method — monthly rounding, first-month rules, compounding if you use it.
- Interest every month
- ₹750
- Interest for 12 months
- ₹9,000
- Customer settles with
- ₹59,000
GoldKhata does this for every loan — receipt, ledger and reminder included.
How to read the result
The calculator uses simple interest — principal × monthly rate × months — which is how most register methods quote a normal running loan. Two conventions from the trade to keep in mind when comparing with a real pledge:
- Part-month rounding: registers count any part of a month as a full month — 1 month 5 days is charged as 2 months.
- Yearly renewal: on long-unpaid loans many firms add unpaid interest to principal on the anniversary, so year two runs on a larger figure.
Both conventions are explained with worked examples in our guide to how gold loan interest is actually calculated.
Frequently asked questions
How is gold loan interest calculated at a pawnbroker?
Counters quote a rate per ₹100 of principal per month — ₹1.50 per hundred means 1.5% monthly (18% yearly). Interest = principal × monthly rate × months charged, with the register convention that any part of a month counts as a full month.
What does ₹1.50 per 100 mean?
₹1.50 interest per month for every ₹100 borrowed: on ₹50,000 that is ₹750 per month, i.e. 1.5% monthly or 18% per annum.
Why does the shop charge full months instead of exact days?
Part-month rounding is the near-universal register convention in the girvi trade: any part of a month counts as a full month. It keeps counter arithmetic simple and identical for every customer.
Run a gold loan firm? This arithmetic is what GoldKhata does at your counter — automatically.
Register-method interest, pledge cards, WhatsApp receipts and statutory registers, from ₹499/month.