Gold Loan Per Gram

Factors affecting gold loan rate per gram and its impact on your gold loan.
Gold Loan Per Gram
2 min read
31 August 2023

Gold holds a unique position within the cultural and economic landscape of India. For countless years, gold has been more than just a precious metal – it has been a symbol of tradition, prosperity, and emotional connection.

Economically, gold has been a reliable hedge against inflation and currency fluctuations. Holding physical gold has been seen as a way to preserve wealth across generations. Additionally, gold has a universal appeal, making it a globally recognised form of currency.

In India, gold's significance has grown to involve its role in finances, especially through gold loans. Gold loans are a popular choice, allowing you to borrow against your gold jewellery. If you are seeking a financial solution that combines the value of your gold jewellery with quick access to funds, a gold loan is worth considering.

What is gold loan per gram?

When obtaining a gold loan, the per gram rate represents the borrowing amount associated with each gram of pledged gold.

For example, if you own 20 grams of 22 karat gold, and the per gram rate is Rs. 4,500. Consequently, the combined market value of the gold possessions equals Rs. 90,000. As a result, they could potentially secure a loan of up to Rs. 67,500 (75% of the total market value) against the gold pieces they possess.

Factors affecting gold loan rate per gram

The gold loan rate per gram is influenced by various factors. Market conditions, demand and supply dynamics, and even international gold prices play a role in determining this rate. Staying informed about today’s gold loan rate per gram allows you to gauge the lending environment and make informed borrowing decisions. The gold loan rate per gram directly affects the loan amount you can obtain. A higher rate means you can secure a larger loan amount for the same quantity of gold.

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 work 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 starting from Rs. 5,000 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 rate 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.

By staying informed about today's gold loan rate per gram and using simple calculations, you can confidently navigate the borrowing process, leveraging your gold's value for your financial needs.

Frequently asked questions

How much gold is required for a Rs. 5-lakh loan?

To secure a Rs. 5 lakh loan, you would require gold valued at approximately 6.7 lakhs, considering that with Bajaj Finance, you can obtain up to 75% of your gold's value in accordance with the RBI's guidelines.

How much loan can I get on 10-gram gold?

The loan amount you can get using 10 grams of gold depends on the rate set by the lender. With Bajaj Finance, you can get up to 75% of your gold's value in accordance with the guidelines set by the RBI.

Disclaimer

1. Bajaj Finance Limited (“BFL”) is a Non-Banking Finance Company (NBFC) and Prepaid Payment Instrument Issuer offering financial services viz., loans, deposits, Bajaj Pay Wallet, Bajaj Pay UPI, bill payments and third-party wealth management products. The details mentioned in the respective product/ service document shall prevail in case of any inconsistency with respect to the information referring to BFL products and services on this page.

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