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The gold loan amount per gram is based on the purity and weight of your gold and the applicable gold valuation rate. When you pledge eligible gold jewellery or ornaments, Bajaj Finance considers the lower of the previous day’s closing price or the 30-day average closing price published by IBJA or a SEBI-regulated commodity exchange.
The applicable LTV ratio is then used to determine how much you can borrow against the assessed value of your gold. You can use a gold loan calculator to estimate the potential loan amount based on your gold’s weight and purity.
Key takeaways
Gold loan per gram refers to the loan amount a borrower can receive against each gram of pledged gold. It is calculated based on the gold’s purity, weight, and the lender’s loan-to-value (LTV) ratio.
For instance, if the market gold price is Rs.5,000 per gram and the lender offers an LTV of 85%, the gold loan per gram would be:
Gold Loan per Gram = Rs. 5,000 × 85% = Rs. 4,250
This means for every gram of gold pledged, the borrower can receive Rs. 4,250 as a loan. Since 916 gold (22-carat) is commonly used, the loan amount may slightly vary based on purity. Higher purity gold attracts better loan amounts.
To maximise the loan, borrowers should compare lenders' offers and check real-time gold rates before applying. Calculating gold loan per gram helps in estimating the total amount available, ensuring informed financial planning.
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.
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.
Pro tip: Turn your gold into instant support—handle any expense with ease. Check your gold loan eligibility and access funds when you need them most.
Here are the key benefits of taking a gold loan:
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.
Gold loans are a popular way to access funds without selling your jewellery, ornaments or coins but understanding how the loan value is calculated is essential.
The gold loan rate per gram can fluctuate daily as gold prices change with market conditions. The applicable rate also varies based on factors such as the purity and weight of your gold, prevailing gold prices and the lender’s valuation method. After assessing your gold, the lender applies the applicable LTV ratio to determine the eligible loan amount. Since rates and gold values can change, checking the latest gold loan rate per gram can help you make an informed decision. A gold loan calculator can also help estimate your potential loan amount based on your gold’s weight and purity.
Calculating the gold loan amount per gram involves a few simple steps:
Gold purity plays a crucial role in determining the gold loan amount per gram you can receive from a lender. Higher purity gold, like 24-karat, usually fetches a better loan value compared to lower purity gold such as 22-karat. This is because gold with higher purity holds more intrinsic value, making it more desirable for lenders.
Key points to understand:
With Bajaj Finance, you can opt to repay your gold loan interest on monthly, bi-monthly, quarterly, half-yearly, or annual basis.
Bajaj Finance does not treat the interest repayment as regular instalments. But to generally calculate the repayment amount for a gold loan based on the per gram rate, follow these steps:
Understanding how to calculate gold loan per gram helps borrowers estimate the loan they can get against their gold. Lenders determine the loan amount based on the gold’s purity, weight, and the rate per gram gold loan set by the market.
For example, if the current gold price is ₹5,000 per gram and the lender offers a 85% loan-to-value (LTV) ratio, the calculation is:
Loan per Gram = Rs.5,000 × 85% = Rs.4,250
This means for 10 grams of 22-carat gold, the loan amount would be Rs.42,500.
Lenders update their gold loan rates daily based on market fluctuations, making it crucial to check the latest rate per gram gold loan before applying. By tracking current gold prices, borrowers can secure higher loan amounts when gold rates are favourable, ensuring maximum financial benefits.
Apply in minutes. Money in account instantly with a Bajaj Finance Gold Loan*
Securing a Bajaj Finance Gold Loan is quick and hassle-free. To qualify, you only need to be an Indian citizen between 21 and 80 years old and own 18-22 karat gold of the required purity. You must have 18-22 karat gold jewellery or ornament to pledge as collateral. You can also pledge gold coins up to 24 karat karat gold purity. There is no need for a high credit score or complicated paperwork. With gold to pledge, you can easily get access to funds without stress.
Do not let your jewellery sit idle—tap into its value with a gold loan that suits your needs. Check your gold loan eligibility today!
Applying for a gold loan with Bajaj Finance is fast and convenient. You can either visit the nearest branch with your gold jewellery and KYC documents for valuation or apply online from the comfort of your home. Once the gold’s value is verified and your eligibility is confirmed, the loan amount is approved and often disbursed in just one visit.
Ready to unlock the value of your gold? Apply for Bajaj Finance Gold Loan today.
The loan amount you can secure per gram of gold primarily depends on the gold's purity and current market price. Typically, lenders offer around 85% of the gold's value, known as the loan-to-value (LTV) ratio. For example, if the gold price is Rs.5,000 per gram, and you have 100 grams of 22k gold, you could receive a loan amounting to Rs.3,750 to ₹4,500 per gram.
Lenders calculate the gold loan per gram rate by assessing the current market price of gold, the purity of the gold being pledged, and the prevailing economic conditions. They determine the effective gold value by factoring in the purity percentage. This value is then multiplied by the lender's loan-to-value (LTV) ratio, which dictates how much they are willing to lend against the gold's market price.
The loan-to-value (LTV) ratio significantly impacts the gold loan amount by determining how much of the gold's value lenders are willing to finance. A higher LTV ratio means you can borrow a larger percentage of your gold's value, while a lower LTV means less financing. We typically offer LTV ratios up to 85%, so understanding this ratio helps you gauge the potential loan amount based on your gold's value.
Market gold prices directly impact the loan per gram value, as lenders determine gold loan amounts based on the prevailing gold rate. When gold prices rise, the rate per gram gold loan increases, allowing borrowers to secure a higher loan amount. Conversely, if gold prices drop, the loan per gram value decreases, reducing the amount one can borrow.
For example, if the gold price is Rs. 5,000 per gram and the applicable LTV ratio is 75%, the loan amount per gram would be Rs. 3,750. If the gold price falls to Rs. 4,800 per gram, the loan amount per gram would reduce to Rs. 3,600, lowering the overall borrowing capacity.
The gold loan amount per gram is calculated based on the gold’s purity, weight and prevailing market rate. The lender assesses the value of eligible gold and applies the applicable Loan-to-Value (LTV) ratio to determine the loan amount. Higher-purity or higher-value gold may qualify for a higher loan amount, subject to the lender’s policies.
The current gold loan rate per gram is not a fixed amount. It depends on the gold’s purity, prevailing gold price, weight and applicable LTV ratio. Bajaj Finance calculates the eligible amount using the applicable gold rate and LTV. Since gold prices change regularly, the per-gram loan amount can also change.
Bajaj Finance Limited (BFL) has the sole and absolute discretion, without assigning any reason to accept or reject any application as per BFL policy. *
