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Gold holds a special place in India, valued not just for its beauty but as a symbol of wealth, tradition, and emotional connection. From weddings to festive celebrations, gold marks nearly every milestone in Indian life. Beyond tradition, gold also plays a financial role — many households see it as a stable store of value, particularly during inflation or economic uncertainty. Because it tends to hold value over time, gold remains one of the most trusted forms of savings in India, making the country one of the world's largest consumers of gold, for both cultural and financial reasons.
Key takeaways
When calculating the loan amount for 1 gram of gold, several factors come into play. The primary factor is the purity of the gold, which is usually measured in karats. In India, 22-karat gold is commonly used for jewellery, and lenders typically offer loans based on this purity level. The market price of gold per gram on the day of the loan application also influences the loan amount. Lenders usually offer a percentage of this market value, known as the Loan-to-Value (LTV) ratio. For instance, if the market price of 1 gram of 22-karat gold is ₹5,000, and the LTV ratio is 80%, the loan amount would be ₹4,000. It's essential to check the lender’s policies and current gold prices to get an accurate estimate.
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 low interest rates, quick disbursal, and multiple 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 up to Rs. 2 crore, with interest rates starting at just 9.50% to 24.25% p.a.
You just need to be an Indian citizen, between ages of 21 to 80 years. You need to bring your 18-22 karat gold jewellery or ornaments, or gold coins up to 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 often disbursed in just one branch visit*. 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 our gold loan calculator. With this tool, you can determine the loan amount, interest rate, and loan tenure as per your financial capacity.
Pro tip: Know how much you can borrow on your gold jewellery—check your gold loan eligibility instantly for a smooth and transparent process.
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.
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 85%, the loan amount for 10 grams of gold would be calculated as follows:
10 grams × ₹5,000 × 85% = ₹ 42,500
This amount can vary depending on the lender’s policies and the applicable 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.
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 24.25% p.a.
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.
Quick tip: Do not let your gold sit idle—tap into its value with a gold loan that suits your needs. Check your gold loan eligibility today!
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.
The loan amount for 1 gram, 5 grams, and 10 grams of gold varies based on the purity and market value of the gold, as well as the applicable Loan-to-Value (LTV) ratio. For instance, if 1 gram of 22-karat gold is valued at ₹5,000 and the applicable LTV ranges from 75% to 85%, the estimated loan amount would be:
The actual loan amount may vary based on the assessed value of the gold and the applicable LTV limit. It is also important to check the gold loan rate of interest, as it affects the total repayment amount. Comparing the applicable interest rates and loan terms can help you choose a suitable option.
*This calculation is for illustrative and informational purposes only. The actual loan amount may vary based on the assessed gold value and applicable LTV limits.
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:
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
The Bajaj Finance Gold Loan calculator helps you plan your loan before applying. Simply select your gold's purity and enter your desired loan amount, and the calculator shows you the gold weight required, the applicable interest, and the loan tenure. You can also choose a repayment tenure that suits you.
Worked example: If 22-karat gold is valued at Rs. 5,000 per gram, and your total loan qualifies for the 85% LTV slab applicable to loans up to Rs. 2.5 lakh:
This is an illustrative example — your actual loan amount depends on the applicable valuation, your gold's exact purity, and the LTV slab your total loan amount falls into. Using the calculator before applying helps you plan your finances with clarity ahead of your branch visit.
It takes just 2 steps to check your eligibility for a Bajaj Finance Gold Loan. Enter your mobile number now.
Applying for a Bajaj Finance Gold Loan is simple and hassle-free. All you need to do is carry your gold and valid KYC documents to the nearest branch. The staff will quickly assess the purity and weight of your gold, let you know the eligible loan amount, and process it right there. In most cases, the funds are transferred to your account on the very same day, so you get quick access to money when needed. For extra ease, you can also apply online through the Bajaj Finance App or website, without even stepping out.
Apply in minutes. Money in account instantly with a Bajaj Finance Gold Loan*
The key factors in choosing the best gold loan include the interest rate, Loan-to-Value (LTV) ratio, repayment terms, processing fees, and the lender's reputation. It's important to compare interest rates and LTV ratios from various lenders to maximise the loan amount. Multiple repayment options and minimal additional fees are also crucial. Additionally, selecting a reputable lender with good customer service ensures a smooth loan process and reliable support throughout the loan tenure.
A reliable gold loan provider offers transparent and low interest rates, clear terms and conditions, and minimal hidden charges. They provide quick and efficient processing, ensuring prompt disbursement of funds. Trusted lenders also have a solid reputation, verified through customer reviews and ratings. Additionally, they offer secure storage for pledged gold, safeguarding its value. Excellent customer service and multiple repayment options further enhance their reliability, making them a preferred choice for borrowers seeking gold loans.
Yes, you can switch your gold loan to a better provider through a process called balance transfer. This involves transferring the outstanding loan amount to another lender offering lower interest rates or better terms. The new lender pays off your existing loan, and you continue repayments under the new terms. Ensure you compare the overall benefits, including processing fees and other charges, before making the switch to ensure it is financially advantageous.
The loan amount per gram of gold depends on the current market price, the purity of the gold, and the lender's Loan-to-Value (LTV) ratio. For instance, if the market price is ₹4,000 per gram and the lender offers an LTV of 85%, you could receive up to ₹3,400 per gram. These values may fluctuate based on market conditions and lender policies.
Applying the same calculation, if the market price is ₹4,000 per gram, 10 grams would be worth ₹40,000. With an LTV of 85%, you could potentially secure a loan of up to ₹34,000 against 10 grams of gold. The actual loan amount may vary based on the purity, assessed value of the gold, and applicable LTV limits.
Lenders calculate the loan value based on the gold’s purity, net weight, assessed market value, and applicable LTV limit. They assess the eligible gold and apply the LTV percentage to determine the maximum loan amount you may receive.
The gold loan per gram rate varies based on the current gold price, purity, assessed value, and applicable LTV limit. It is not a fixed rate, so the eligible loan amount can differ across lenders and gold types.
The loan you can get for 1 gram of gold is based on its purity and the gold rate at the time of applying. The final amount also depends on the lender’s policies and the value of your gold.
Bajaj Finance Limited (BFL) has the sole and absolute discretion, without assigning any reason to accept or reject any application as per BFL policy. *
