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Learn how gold loan per gram rates are determined and the key factors that affect them.
When you apply for a gold loan, the lender will weigh your gold to assess its value. The loan amount you receive depends on the gold loan per gram rate, which is influenced by the market price of gold. This rate fluctuates daily and can vary from one lender to another.
Additionally, the purity of your gold, such as 22k or 24k, affects the rate offered. Lenders typically provide a percentage of the gold’s value through the Loan-to-Value (LTV) ratio. The more gold you pledge, the higher the potential loan, as long as the rate per gram remains favourable.
Taking a gold loan per gram via Bajaj Markets comes with several advantages that make it a flexible and convenient financial option:
You can borrow up to 75% of your gold’s current market value, giving you quick access to a significant loan amount.
Choose from a variety of repayment schedules, including monthly, bi-monthly, quarterly, half-yearly, or annual payments, based on your convenience.
Repay a portion of your loan and retrieve some of your gold collateral before the loan term ends, offering more flexibility.
You can prepay or foreclose your loan without any additional fees, making it cost-effective.
Your credit score doesn’t affect the approval of your gold loan, making it accessible even for those with limited or no credit history.
Disclaimer: Terms and conditions apply to the benefits mentioned above, and these may vary from one lender to another.
Here are the key eligibility criteria for applying for a gold loan via Bajaj Markets:
Nationality: You must be an Indian citizen to apply for a gold loan
Age: Applicants should be at least 18 years old
Employment Status: You can be a salaried employee, self-employed individual, entrepreneur, farmer, or trader
The rate of a gold loan per gram can be influenced by several key factors that vary daily. Here are the main factors that affect the gold loan rate per gram today:
The purity of gold is one of the key factors determining the loan amount you can receive. In simple terms, it refers to the proportion of pure gold in the item you pledge. For example, a 24K gold coin or bar contains 99.9% pure gold with no alloys mixed in, meaning you’ll receive a higher per gram rate when pledging gold coins.
However, jewellery cannot be made from pure gold alone, so it is mixed with other metals to create an alloy. The purity of the gold will depend on how much other metal is added. For instance, gold jewellery is often made from 22K gold, which is stamped with ‘916’ to indicate it contains 91.6% pure gold. In contrast, 18K gold has a lower purity, so the per gram rate offered will be lower.
The first factor in determining your gold loan rate per gram is the current market price of gold. If you approach a lender on a day when gold prices are high, you could receive a larger loan for the same amount of gold. Therefore, it’s a smart idea to keep track of gold prices regularly if you’re considering taking out a loan against your gold.
The Reserve Bank of India (RBI) guidelines specify that the maximum LTV ratio for standard gold loans must not exceed 75%. This allows lenders to provide loans up to 75% of the gold's market value. However, agricultural gold loans have no fixed limit, with the LTV ratio potentially reaching up to 90%. The LTV ratio offered can vary based on the specific gold loan product.
| Product Type | Maximum Loan-to-Value (LTV) |
|---|---|
General Gold Loans |
Up to 75% of the market value of gold |
Agri Gold Loans |
Up to 90% of the market value of gold |
Non-Agri Gold Loans |
Up to 75% of the market value of gold |
MSME Gold Loans |
Up to 75% of the market value of gold |
Disclaimer: The LTV ratios mentioned above are indicative and can vary based on the lender’s policy, gold purity, market value of gold, and regulatory guidelines. Actual loan amounts may differ, so it’s important to confirm the latest rates and terms with your lender before applying.
Financial institutions have the flexibility to set the per gram rate for gold loan products, within the limits set by the RBI. While they cannot exceed the RBI’s cap, they may offer a lower Loan-to-Value (LTV) ratio to cover lending costs. As a result, different banks and non-banking financial companies (NBFCs) may quote varying rates per gram. Many borrowers aim to secure the maximum loan for their gold and often choose the lender offering the highest per gram rate. However, it’s important to also consider the interest rates charged, as these can differ significantly from one lender to another.
Each lender may have their own approach for determining the per gram gold rate, but it typically starts with the current market price of gold. The rate varies depending on the purity of the gold; for example, 24K and 22K gold are priced differently.
For instance, as of 11th December 2025, the cost of 10 grams of 24K gold is ₹1,30,820, making the market price of one gram of 24K gold ₹13,082.
According to RBI regulations, lenders can only offer up to 75% of the gold’s value. In this case, the maximum loan a lender could offer for the example above is ₹7,107 per gram of gold. To find out the exact loan amount you could receive, you can use the gold loan calculator available on the lender's website.
The Multi Commodity Exchange (MCX) offers real-time updates on the market price of gold, allowing you to track price fluctuations throughout the day. This platform is a reliable source for getting the latest gold prices based on global market trends. Alternatively, you can also visit your lender’s website, where they often provide the current gold rate along with the specific per gram rate they offer for loans. This way, you can compare the market price with the rate your lender is offering to make an informed decision.
Both banks and Non-Banking Financial Companies (NBFCs) offer gold loans, and as a borrower, your main objective is often to secure the highest loan amount possible. Before selecting a lender, it's essential to understand the differences between what banks and NBFCs offer in their gold loan products.
| Features | NBFCs | Banks |
|---|---|---|
Loan-to-Value (LTV) |
NBFCs tend to offer higher LTV ratios, sometimes up to 80% of the gold's value, making them suitable for larger loan amounts |
Banks typically offer LTV ratios between 60–75%, which may result in a slightly lower loan amount |
Interest Rates |
Interest rates are generally higher, often exceeding 12% per year, and can be steeper than those offered by banks |
Interest rates range from 8–12% per year, generally more competitive than NBFCs |
Repayment Options |
NBFCs offer more flexible repayment terms, with some allowing interest-only payments at the start of the loan |
Banks typically follow a fixed EMI structure, which is less flexible compared to NBFCs |
Many gold loan providers now offer the convenience of digital gold loans, allowing you to apply online:
Start by using a gold loan calculator to estimate the loan amount based on the weight of your gold
Visit the official website of your chosen lender and complete the online application for a gold loan
Enter your personal details and specify the amount of loan you require
The lender will present you with the terms of the loan. If you are satisfied with these terms, you can proceed to submit your application
Depending on the lender, you may need to take your physical gold to a nearby branch, or some lenders may offer door-to-door collection services for your gold
Once approved, the loan will be disbursed either directly to your bank account or provided in cash, depending on the financial institution
To secure the best deal on a gold loan, consider the following tips:
Shop around and compare loan offers from various lenders to ensure you get the best value for your gold. Pay attention to factors such as processing fees, appraisal charges, and early payment penalties, as these contribute to the overall cost of borrowing. You can easily compare these details when you search for gold loans on Bajaj Markets.
When applying online, you can quickly compare interest rates from different lenders. Some lenders may be open to negotiation, giving you the opportunity to secure a lower interest rate.
Gold loans are typically short-term credit facilities, and interest rates are often lower for shorter loan terms. Repayment tenures can vary from a few weeks to up to 3 years, depending on the lender. Opting for a shorter term may help you save on interest.
A gold loan per gram is the amount a lender offers for each gram of gold you pledge, calculated based on the gold’s purity and current market price. Typically, lenders offer up to 75% of the gold’s market value, in line with RBI guidelines.
The gold loan per gram rate is determined by three key factors: the gold's market price, its purity (karat), and the lender’s Loan-to-Value (LTV) ratio. Lenders can offer up to 75% of the gold’s market value, but this may vary with the lender's policies.
Yes, the gold loan per gram rate changes daily, reflecting fluctuations in the gold market. These changes are influenced by global commodity markets and can be tracked on platforms like the Multi Commodity Exchange (MCX). You can also check your lender’s website for updated rates.
The maximum loan amount per gram depends on the lender, gold purity, and the current gold price. Typically, you can borrow up to 75% of the gold’s market value, though this can vary. A gold loan calculator can help you estimate the loan amount you may be eligible for.
Higher purity gold, such as 22K or 24K, attracts a higher loan rate because it contains more gold. For instance, 24K gold has no alloys mixed in, making it more valuable than 22K gold, which has other metals added to increase strength. Thus, a 24K gold coin will fetch a higher per gram rate.
Leading banks and NBFCs like Muthoot Finance, Bajaj Finance, IIFL Finance, indiagold, Muthoot Fincorp ONE, Rupeek and Fedfina offer competitive gold loan rates. However, the per gram rates and terms may vary, so it’s advisable to compare offers from different lenders before applying.
Typically, the gold loan per gram rate is based on the market price of gold and purity, so it is fixed. However, some lenders may offer better terms, especially to borrowers with a strong repayment history or those taking larger loans.
You can check today’s gold loan per gram rate by visiting the official websites of your chosen lenders or calling their customer service. Many banks and NBFCs also provide online gold loan calculators for real-time rate estimates.
Once the loan is disbursed, fluctuations in gold prices do not affect your existing loan. However, if gold prices drop significantly, lenders may request additional collateral. In case of missed payments, the lender may auction the pledged gold to recover the loan amount.
Gold loan repayment options include:
Bullet repayment: Pay the entire loan and interest at the end of the term
EMIs: Pay monthly instalments for both principal and interest
Interest-only payments: Pay only interest monthly and settle the principal in a lump sum at the end of the loan tenure
The loan you can receive per gram of gold is based on the prevailing market price and the lender's Loan-to-Value (LTV) ratio. Usually, lenders offer up to 75% of the gold's value, but in cases like agri-gold loans, this percentage may be higher.
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