Several financial institutions in India offer competitive rates and terms for gold loans. Bajaj Finance is a leading Non-Banking Financial Companies (NBFCs) specialising in gold loans.
Known for its transparent process and customer-friendly policies, Bajaj Finance offers competitive interest rates, quick disbursal, and flexible repayment options. With minimal documentation required, the NBFC ensures a hassle-free experience for the borrowers.
With Bajaj Finance, you can get quick access to funds starting from Rs. 5,000 to Rs. 2 crore, with interest rates starting at just 9.50% p.a. You can get up to 75% of your gold’s value as loan. You just need to be an Indian citizen, between ages of 21 and 70 years. You need to bring your 18-22 karat gold jewellery along with any one of the following KYC documents for gold loan- Aadhaar card, Voter ID, driving licence, passport, NREGA job card and letter from NPR. Once the verification and evaluation is done, your loan amount is disbursed in as less as 15 minutes*. These loans come with no hidden charges, easy part-release facility, free insurance of gold and multiple repayment options, that makes them an attractive financing option. To plan your financial journey better, you can use the Bajaj Finserv Gold Loan calculator. With this tool, you can determine the loan amount, interest rate, and loan tenure as per your financial capacity.
Impact of market price on gold loan amount per gram
The market price of gold directly impacts the loan amount you can secure per gram when applying for a gold loan. Since the value of the pledged gold backs gold loans, the loan amount is determined based on the current market rate. A higher market price means you can borrow a larger sum per gram, making it an advantageous option during periods of rising gold prices.
For instance, if the price of gold increases, lenders may offer a higher loan amount for the same quantity of gold, as the collateral value appreciates. Conversely, during a price dip, the loan amount per gram may decrease. Most lenders provide a percentage of the gold’s market value, known as the Loan-to-Value (LTV) ratio, which is capped by regulatory guidelines.
Understanding the market dynamics can help borrowers maximise their loan amount. For those in urgent need of funds, keeping an eye on gold price trends ensures they pledge their gold when prices are favourable, thus optimising the borrowing potential. This relationship between market prices and loan amounts makes gold loans a flexible and value-driven credit option.
How much loan on 10 gram gold?
The loan amount for 10 grams of gold depends on its purity and the current market price. For instance, if the price for 22-karat gold is valued at around ₹5,000, with a Loan-to-Value (LTV) ratio set at 75%, the loan amount for 10 grams of gold would be calculated as follows:
10 grams × ₹5,000 × 75% = ₹ 37,500
This amount can vary depending on the lender’s policies and the current gold market rate. It’s advisable to check the exact market price and the specific terms offered by different lenders to get the most accurate loan amount.
Understanding loan value for 10 gram gold
Understanding the loan value for 10 grams of gold involves knowing the current market rate and the purity of the gold. Lenders assess the value based on the gold's purity, with 22-karat gold being the standard. They apply a Loan-to-Value (LTV) ratio, usually between 75% to 90%, to the market price. For example, if the market price for 1 gram of 22-karat gold is ₹5,000, then 10 grams would be worth ₹50,000. Applying an 80% LTV ratio, the loan value would be ₹40,000. This calculation helps borrowers understand how much they can expect to receive and aids in planning their finances. It’s important to stay updated with the gold rates and consult with the lender to get the precise loan amount.
Interest rates and repayment terms for 10 gram gold loans
Interest rates for gold loans vary across different lenders and are influenced by factors such as the loan amount, tenure, and market conditions. With Bajaj Finance, the interest rates range from 9.50% to 24% per annum.
You can choose from gold loan repayment options, where you may opt to pay interest on a monthly, bi-monthly, quarterly, half-yearly, or annual basis as per your convenience. Please note that the principal amount and pending interest, if any, will be due for payment at the time of loan maturity. With Bajaj Finance, you can also benefit from no foreclosure and prepayment charges, easy gold loan part-release facility, and free insurance of gold.
How to apply for a loan on 10 gram gold?
Applying for a loan on 10 grams of gold is straightforward and involves a few essential steps.
Step 1: Click on ‘APPLY’
Open the online application form to begin the process.
Step 2: Enter your mobile number
Provide your 10-digit mobile number and click on ‘GET OTP’.
Step 3: Verify your identity
Submit the OTP received on your phone to complete the verification.
Step 4: Select your location
Choose your state and city to find the nearest branch.
Step 5: Fill in personal details
Enter your full name and date of birth as mentioned on your PAN card.
Step 6: Set up an appointment
Schedule your visit to the branch for further processing.
Once these steps are completed, a representative will contact you to confirm your appointment and guide you on the next steps.
How much loan for 1 gram, 5 gram, and 10 gram gold?
The loan amount for 1 gram, 5 grams, and 10 grams of gold varies based on the purity and market rate of the gold, as well as the lender's Loan-to-Value (LTV) ratio. For instance, if 1 gram of 22-karat gold is valued at ₹5,000, lenders typically offer an LTV ratio of 75% to 90%. Therefore, for 1 gram of gold, you could receive a loan amount of ₹3,750 to ₹4,500. Similarly, for 5 grams, the loan amount ranges from ₹18,750 to ₹22,500, and for 10 grams, it ranges from ₹37,500 to ₹45,000. It's crucial to check the gold loan rate of interest offered by different lenders, as it can significantly affect the total repayment amount. Comparing these rates helps in securing the best deal for your gold loan.
Factors affecting gold loan amount
The amount you can borrow against gold depends on several important factors. If you are wondering “how much loan on 10 gram gold”, it is good to know what influences the loan amount. Here are the main factors:
- Gold purity: The purer your gold, the higher the loan. Lenders check the purity to calculate the gold loan per 10 gram or 1gm gold loan amount. Bajaj Finance considers only 18-22 karat gold for loan.
- Gold weight: The weight of your gold jewellery directly affects the loan. For example, the 10 gram gold loan amount will be higher if the gold is pure and heavy.
- Current gold rate: The loan value changes with market gold rates. The gold loan for 10 grams in India may vary daily.
- Loan-to-value (LTV) ratio: This is the percentage of gold’s value that lenders approve as a loan. With us, you can get up to 75% of your gold’s value as loan.
Knowing these helps you estimate how much gold loan per 10 gram you can get. Use an online calculator to get an idea before applying.
Calculating loan amounts for different gold weights
To calculate loan amounts for different gold weights, you can use a gold loan calculator available on various financial websites. The calculator requires inputs like the weight and purity of the gold and the current market price. For example, if the market price of 1 gram of 22-karat gold is ₹5,000 and the lender offers an 80% Loan-to-Value (LTV) ratio, the loan amount for 1 gram would be ₹4,000. For 5 grams, it would be ₹20,000, and for 10 grams, ₹40,000. The gold loan calculator provides an accurate and quick estimation of the loan amount, helping borrowers plan better. It’s a useful tool to compare offers from different lenders and choose the best option based on the loan amount, interest rates, and repayment terms.
