How is gold loan amount calculated?

2 min read
06 October 2023

Gold ownership offers individuals financial security due to the ever-increasing market value of this precious metal. Even as an idle jewellery piece, its underlying asset value remains high and can fetch a significant price when sold or traded. Luckily, you do not need to lose gold ownership to raise funds today. You can instead opt for a loan against your gold jewellery. The loan amount available depends on the gold loan per gram rate followed by the lender.

You can use the Bajaj Finserv Gold Loan Calculator which features the changing gold loan per gram rate to assess the maximum loan amount availability as per the weight the of gold jewellery you own.

How to calculate gold loan rate per gram as per gold purity?

The process of gold loan per gram rate calculation is quick and simple. Available gold loan per gram calculators works on the following basis to arrive at computed results.

  1. The weight of the gold jewellery to be pledged is considered.
  2. The purity level of gold is determined, with ideal purity sought at 18-22 karat.
  3. Average price of 18-22 karat gold jewellery is computed for the past 30 days.
  4. The amount sanctioned is calculated as per the lender’s LTV.

The purity of a gold ornament closely determines and impacts the ultimate gold loan per gram rate computed.

Now that you know the process of calculating the per gram rate, know the various benefits of availing a gold loan from Bajaj Finance.

Benefits of taking a gold loan

  • Financing against the underlying asset value: You can easily utilise the underlying asset value of gold ornament to raise necessary funding urgently.
  • High loan amount: The purity and weight of gold offered for the pledge can fetch gold loan funding of up to Rs. 2 crore easily.
  • Minimal paperwork: The documents list for a gold loan is short and involves only the address proof and KYC documents.
  • Affordable rates of interest: Secured nature of financing makes the gold loan interest rates more affordable.
  • Multiple repayment options: Choose your suitable repayment method to fit your monthly budget.
  • Insurance of pledged gold: When availing a gold loan from Bajaj Finance, you also enjoy free insurance coverage for gold for as long as it remains in our custody. Such coverage is provided against theft and misplacement of stored gold.
  • Partial release of gold ornaments: If you need some of your pledged gold, you can secure partial release of the pledged item against loan repayment of an equivalent amount.

Along with these benefits, it is equally important to understand the gold loan per gram rate calculation. You may also use the gold loan calculator when planning your loan application. It allows you to gauge repayment liability and helps make affordable borrowing decision.

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