What is the Impact of Gold Price on Your Gold Loan

How gold prices influence the value of your gold loan

Have you ever thought about how the changing price of gold affects the value of your jewellery? If you own gold, its market price directly decides how much loan you can get against it. Gold rates move up and down due to global economic conditions, inflation, currency changes, and geopolitical events. When gold prices are high, your jewellery is valued higher too, which means you may be eligible for a larger loan amount.

With a Bajaj Finserv Gold Loan, the loan value is calculated based on the purity and weight of your gold jewellery and the prevailing gold rate. To make planning easier, you can use the online gold loan calculator to estimate your loan amount in advance. This helps you borrow confidently and make informed financial decisions.

Price of gold jewellery per gram

The price of gold jewellery in India is influenced by numerous factors, such as international gold rates, import duties, taxes and local market demand. The price can vary from city to city and from one jeweller to another. Therefore, it's crucial to research and compare gold jewellery prices from reputable jewellers before making any transactions.

The price of gold jewellery per gram is an essential factor in determining the loan amount that you can secure against your gold jewellery. The purity of gold, measured in karats, impacts the price per gram. For instance, 24-karat gold is the purest form, containing 99.9% gold, while 22-karat gold consists of 91.6% gold and 8.4% other alloys. As a result, 24-karat gold jewellery will have a higher price per gram compared to 22-karat gold jewellery.

The price of gold plays a significant role in determining the loan amount that you can avail against your gold possessions. Higher gold prices may lead to a larger loan amount, while lower prices may result in a smaller loan. It is essential to stay updated on gold prices and find reputable jewellers to get the best value for your gold jewellery when considering a gold loan. Remember to understand the purity, weight, and current market prices to make informed decisions and make the most of your gold jewellery during a financial need.

Here's a list of gold rates across different cities