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What is a gold loan rate per gram?
The gold loan rate per gram refers to the loan amount a lender may offer for each gram of gold pledged as collateral. Understanding the gold loan per gram helps borrowers estimate their potential loan amount before applying.
For example, if you have 20 grams of 22 carat gold and the gold loan value per gram is set at Rs. 4,500, the total assessed value of your gold would be Rs. 90,000. As per the latest RBI guideline rules for loan-to-value (LTV), such as LTV of 85% for loans up to Rs. 2.5 lakh, you may be eligible for a loan amount of up to Rs. 76,500.
The gold loan rate per gram is dependent on factors such as gold purity, gold prices, and the lender's valuation methodology. Generally, high purity gold and stronger market prices can result in a higher gold loan value per gram, which may increase the eligible loan amount.
Checking the gold loan per gram before applying for a gold loan can help you plan your finances better and understand your borrowing capacity. You can also use an online gold loan calculator to get a quick estimate based on your gold weight and purity.
How much gold loan can you get per gram?
The gold loan per gram value you can get against your gold depends on three key factors: the purity of your pledged gold, the price of gold, and the applicable loan-to-value (LTV) ratio. Higher-purity gold generally attracts a higher gold loan value per gram, while a rise in gold prices can also improve the eligible loan amount.
For example, if the gold loan rate per gram for 22-carat gold is Rs. 4,500 and you pledge 20 grams of gold, the assessed gold value would be Rs. 90,000. If the lender offers up to 75% of the gold's value as a loan, you may be eligible for up to Rs. 67,500.
Since gold prices and valuation norms change over time, the gold loan value per gram may vary. Checking the latest rates before applying can help you estimate your borrowing capacity more accurately.
It is important to note that Bajaj Finance considers lower of the previous day’s closing price, or the 30-day average closing price published by IBJA or a SEBI-regulated commodity exchange to evaluate the loan amount against your gold jewellery, ornament or coin.
How to calculate gold loan per gram
To calculate gold loan per gram, lenders consider the weight and purity of your gold, the applicable gold price, and applicable loan-to-value (LTV) ratio. This gold loan per gram calculation helps estimate the amount you may be eligible to borrow.
Formula:
Gold loan per gram = Applicable gold price per gram × Applicable LTV ratio
Example:
Assume the value of 22 carat gold is Rs. 6,000 per gram and the applicable LTV is set at 75%.
Gold loan per gram = Rs. 6,000 × 75%
Eligible loan amount per gram = Rs. 4,500
The final loan amount is then calculated based on the total weight of the pledged gold. Since higher-purity gold generally attracts a higher valuation, it can result in a higher eligible loan amount. Borrowers can also use an online gold loan calculator to estimate the Bajaj Finance gold loan per gram rate and understand their borrowing capacity before applying.
Factors affecting gold loan rate per gram
The gold loan rate per gram is influenced by several important factors that determine how much loan amount you can get against your jewellery. Being aware of these elements can help you plan better and make informed borrowing decisions.
- International gold prices – Global market trends play a major role in setting domestic gold prices. Any change in international rates, due to economic events or geopolitical situations, impacts the price you receive.
- Demand and supply – When there is high demand for gold in the local market, the value per gram generally increases. On the other hand, low demand may bring prices down.
- Market conditions – Factors like inflation, interest rates, and currency fluctuations affect gold rates. In times of economic uncertainty, gold prices often rise as people prefer safe investments.
- Gold purity – The higher the purity of your gold, the better the rate you will get. For example, 22 karat jewellery will fetch a better rate compared to lower purity ornaments.
Checking today’s gold loan rate per gram and using tools like a gold loan calculator ensures you know your potential loan amount before applying.
Pro tip: It takes just 2 steps to check your eligibility for a Bajaj Finance Gold Loan. Enter your mobile number now.
How gold purity affects gold loan per gram
Gold purity is one of the most important factors that determines the gold loan value per gram. Lenders assess the purity of gold before calculating the eligible loan amount. In general, higher-purity gold has a higher market value and may qualify for a higher gold loan rate per gram.
Key factors that influence the loan amount include:
- Purity of the gold
- Gold Rate
- Lender's loan-to-value (LTV) policy
- Weight of the pledged gold
Gold loan per gram for 18 carat gold
18-carat gold contains 75% pure gold. Since its gold content is lower than 20-carat and 22-carat, the eligible loan amount per gram is generally lower. The exact gold loan value per gram depends on the applicable gold prices and lender policies.
Gold loan per gram for 20 carat gold
20-carat gold contains a higher percentage of pure gold than 18-carat gold. As a result, borrowers may receive a higher gold loan rate per gram compared to 18-carat gold, subject to valuation and LTV limits.
Gold loan per gram for 22 carat gold
The gold loan per gram value for 22 carat gold is higher because it contains a greater proportion of pure gold. Since most gold jewellery in India is made in 22-carat purity, it is generally accepted by lenders for gold loans and may attract a higher loan amount per gram.
What should you compare when checking gold loan per gram rates?
A gold loan per gram comparison helps borrowers understand which lender offers the best value against their gold. However, the highest loan amount should not be the only factor considered.
| Comparison factor | Why it matters |
|---|---|
| Gold loan per gram | It determines the loan amount available against each gram |
| Interest rate | It affects the total borrowing cost |
| Loan-to-value ratio | It affects the maximum eligible loan amount |
| Repayment options | It offers flexibility in loan repayment |
| Processing charges | It impacts the overall cost of borrowing |
| Loan tenure | It determines repayment duration |
When you compare gold loan per gram rates, consider the complete loan package rather than focusing only on the loan amount.
Checklist before applying:
- Compare the gold loan amount offered per gram
- Check applicable interest rates
- Review repayment options
- Understand processing fees and charges
- Verify loan tenure and renewal terms
- Confirm how gold purity is assessed
A detailed gold loan per gram comparison can help borrowers choose a loan that offers both low interest rates and suitable repayment flexibility.
Benefits of understanding gold loan value per gram
Understanding the gold loan per gram can help borrowers make informed financial choices before applying for a loan. Since the gold loan value per gram depends on the purity of gold, applicable gold rate, and lender policies, understanding these factors can help you estimate the amount you may be eligible to borrow as loan.
Key benefits include:
- Better borrowing decisions: Understand the estimate loan amount available against your pledged gold jewellery, ornaments or coins.
- Loan planning: Estimate your borrowing capacity and choose a suitable gold loan repayment strategy.
- Comparing lenders: Evaluate offers from different lenders based on the gold loan value per gram, gold loan interest rate, and terms.
- Estimating eligibility: Get a clearer idea of your likely loan amount before starting the application process.
By tracking the latest gold loan per gram rates and understanding valuation methods, borrowers can compare options confidently and select a gold loan that best suits their financial requirements.
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Eligibility criteria to apply for a gold loan
If you are planning to apply for a gold loan, it is important to understand how eligibility is determined per gram of gold. The process is quite straightforward and requires only a few basic conditions to be met. Lenders such as Bajaj Finance make this process simple, ensuring quick access to funds. Key eligibility criteria and loan calculation:
- Age and ownership: You must be an Indian citizen aged 21 to 80.
- Gold purity: Gold must be 18-22 karat for jewellery and ornaments, commonly accepted for higher valuation. You can also pledge gold coins up to 24 karat purity.
- Weight of gold: The total weight of the pledged gold helps determine the overall loan amount.
- Loan-to-value (LTV) ratio: Up to 85% of your gold’s market value can be sanctioned as a loan.
- Other considerations: Some lenders may require a minimum gold weight and consider market trends while evaluating gold price.
The maximum LTV eligible for consumption loans per borrower depends on the loan amount and cannot be more than the limits given:
- For loans up to Rs. 2.5 lakh = LTV 75%
- For loans between more than Rs. 2.5 lakh to Rs. 5 lakh = LTV 80%
- For loans from more than Rs. 5 lakh up to Rs. 2 crore = 85%
You can use the Bajaj Finance Gold Loan calculator to check your gold loan eligibility per gram and get an estimate instantly.
Quick tip: 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!
Documents required for a per gram gold loan
Applying for a gold loan with Bajaj Finance is simple and requires minimal paperwork. You only need to provide basic KYC documents to complete the process. Since the loan is secured against your physical gold, there is no need for extensive financial documents, which makes approval faster and more convenient. To apply, you just need any one of the following KYC documents required for gold loan:
- Aadhaar card
- Passport
- Voter ID
- Driving licence
- NREGA job card
- Letter issued by the National Population Register
Once your gold is evaluated and documents are verified, your loan is approved quickly, often with same-day disbursal.
Ready to unlock the value of your gold? Apply for Bajaj Finance Gold Loan today.
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Bajaj Finance Limited has the sole and absolute discretion, without assigning any reason to accept or reject any application. Terms and conditions apply*.
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