Gold Loan Per Gram

When you apply for a gold loan, the lender weighs the gold to determine its value. The loan amount is then based on the per-gram rate they offer, known as the gold loan per gram rate.

The gold price constantly changes, and the loan provider may decide their per gram rate based on the market gold price on that day. So, the per gram rate you receive for the pledged gold also varies on different days for different lenders. 

Each lender may have their own policies for determining the per gram gold rate. Generally, they start with the current market price of gold. Depending on the purity, 24K and 22K gold have a different market price. For example, as of 4th April 2025, the cost of 10 gm of 24K gold is ₹93,563. So, the market price of one gram of 24K gold is ₹9,356. 

As per RBI, lenders can only offer up to 75% of gold value, which means the maximum gold loan that anyone can offer for the above example is ₹7,107 per gram of gold. To know the exact gold loan you can get, you can use the gold loan calculator available on the lender's website.

The common factors that impact gold loan rate per gram today are:

Gold Purity and Karat Value 

The most important factor that determines the loan on gold items you can get is the gold purity. Simply, it refers to how much gold is present in the article you pledge. A 24K gold coin or bar contains 99.9% pure gold without any alloy mixing. So, when you pledge gold coins, you can get a better per gram rate. Jewellery cannot be made with pure gold, so mixing it with other metals to create a gold alloy is necessary. Depending on how much other metal is added, the gold purity varies. For example, gold jewels are made of 22K gold, and the 916 stamp indicates that the gold purity is 91.6%. The gold purity in 18K gold is much lower, so the per gram rate will also be lower.  

Current Market Price of Gold

The starting point for calculating the gold loan rate per gram is the market price of gold itself. When you approach a lender on a day when the gold rate is trending at a higher price, you may get a higher loan for the same weight of gold. So, keeping a track of gold prices regularly is a wise idea if you intend to get a loan against gold.

RBI guidelines dictate that the maximum LTV ratio for general gold loans must not exceed 75%. So, the maximum amount lenders can offer cannot exceed 75% of the market value of gold. For agri-gold loans, there is no cap on LTV, and it can go up to 90%, too. Lenders offer varying LTV based on the gold loan product. 

Financial institutions can determine the per gram rate they can offer for gold loan products. While they can't exceed the cap set by RBI, they often offer a lower LTV to cover the lending cost. So, when you look for banks and NBFCs to get a gold loan, they may quote different rates per gram offered. Often, borrowers want to get the maximum loan for their gold and may choose a lender who offers the highest per gram rate. However, you must pay attention to the interest charged because it can also vary from one lender to another.

The commodity trading platform Multi Commodity Exchange (MCX) provides the latest market price of gold. You can also check the market price of gold on a lender's website.

Both banks and NBFCs offer gold loans, and as a borrower, your goal is usually to get the highest loan possible. Before choosing a lender, here is the difference between banks and NBFCs in their gold loan offerings:

Most gold loan providers now offer digital gold loans for which you can apply online:

1. Use the gold loan calculator to determine the amount of loan you can get based on the weight of gold. 

2. Go to the official website of the lender of your choice and use the online application for a gold loan. 

3. Enter your personal information and gold loan requirement. 

4. You will be presented with gold loan terms. If you agree to those terms, you can submit your loan application. 

5. Depending on the lender, you may have to take the physical gold to a nearby branch. Some lenders may offer door-to-door collections of gold articles. 

6. Get the loan disbursed to your account or get it in cash directly from the financial institution.

To get the best offer for a gold loan:

• Compare lenders: Compare loan offers from different lenders to get the best price for your gold. Some of the factors you must look for are processing fees, appraisal charges, early payment penalties, etc, which contribute to the indirect cost of borrowing. You can get all these details when you search for gold loans on Bajaj Markets.

• Negotiate interest rates: When you apply online, you can easily compare interest rates and choose a lender offering a competitive inter rate. Some lenders may be willing to negotiate, and you may get a chance to lower the interest rate. 

• Choose a shorter loan term: Gold loans are short-term credit facilities and so, interest rates may be lower for a shorter term. Repayment tenures may vary from a few weeks to 3 years based on the loan provider.