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
8 April 2025

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 a gold loan rate per gram?

When you plan to take a gold loan, understanding the per gram rate is essential. This rate tells you how much loan you can receive for each gram of gold you pledge. For instance, if you own 20 grams of 22 carat gold and the per gram rate is ₹4,500, the total market value of your gold would be ₹90,000. Lenders like Bajaj Finserv typically offer up to 75% of this market value as the loan amount. In this case, you could get a gold loan of up to ₹67,500.

This calculation helps you understand your loan eligibility before applying. The per gram rate depends on the purity of the gold and current gold rates in India. The higher the purity and market rate, the greater the eligible loan amount. Using an online gold loan calculator can also help you estimate the amount you might qualify for.

Knowing this value beforehand allows you to plan your finances better and avoid surprises. Whether you need funds urgently or are planning for a short-term goal, the per gram rate gives you a transparent view of what you can expect from your gold loan.

Factors affecting gold loan rate per gram

The gold loan rate per gram is determined by a mix of market-driven elements. Understanding these factors can help you estimate the loan amount you might be eligible for and plan accordingly. Key factors affecting gold loan rate include:

  • International gold prices – Global market trends directly influence domestic gold prices.
  • Demand and supply – High local demand can drive up the gold value per gram.
  • Market conditions – Economic factors such as inflation, interest rates, and currency value impact gold prices.
  • Gold purity – The rate is calculated based on the purity of your gold.

Staying updated on today’s gold loan rate per gram helps you make better borrowing choices. A higher per gram rate allows you to access a larger loan amount against the same gold weight. Use tools like a gold loan calculator to check your potential loan amount before applying.

How is the loan amount per gram of gold determined?

The loan amount per gram of gold is determined by several factors, primarily based on the current market value of gold and the purity of the jewellery being pledged. Lenders typically use the daily gold rate in the region to calculate the loan value. The purer the gold, the higher the loan amount per gram.

Additionally, lenders apply a loan-to-value (LTV) ratio, which can go up to 75% of the gold’s current market value, as per RBI guidelines. This means if your gold is valued at ₹5,000 per gram, you may get a loan of up to ₹3,750 per gram. Other factors like gold weight, design (if stones or non-gold elements are present), and applicable policies also affect the final loan amount. You can use the Bajaj Finserv gold loan calculator to get an instant estimate.

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.

How much can I get for a gold loan per gram?

The loan amount per gram of gold you can secure depends on various factors, including the purity and current market value of gold. Bajaj Finance typically offers loans up to 75% of the gold’s market value. For instance, if the market value of 1 gram of gold is Rs. 5,000, you may receive up to Rs. 3,750 as a loan. This percentage may vary across lenders and according to the weight and karat (purity) of the gold pledged as collateral. The appraisal process evaluates the gold’s purity, and then the loan-to-value (LTV) ratio is applied, providing a clear idea of the amount you can borrow per gram. The higher the purity (22-carat or 24-carat gold), the greater the loan amount you may be eligible for. Lenders often adjust loan offerings based on market conditions and individual policies, so it is advisable to check the rates with multiple lenders. Quick processing time of gold loans make them a popular option for individuals seeking fast access to funds. It’s crucial to use a gold loan calculator to estimate how much you can get based on the weight and purity of your gold, ensuring accurate financial planning.

Gold loan rate per gram for 22 carat and 24 carat gold

The gold loan rate per gram differs based on the purity of the gold you pledge. Generally, 24 carat gold, which is purer than 22 carat gold, yields a higher loan amount per gram. For instance, if 24 carat gold is valued at Rs. 5,000 per gram in the market, you could receive up to 75% of that value, which would be Rs. 3,750. On the other hand, 22carat gold, being slightly less pure, may have a market value of around Rs. 4,600 per gram, resulting in a lower loan amount per gram. Lenders, including Bajaj Finance, offer loans up to 75% of the gold’s value, and the amount varies according to the current market price and gold’s weight. It is important to note that most lenders only accept gold of 22 carat or 24 carat purity for loans, with the value being assessed based on its weight and purity. The difference in value between the two purities is a key determinant in how much loan amount you can expect, making it crucial to assess the purity before applying for a loan.

Gold loan rate per gram for 22-carat and 24-carat gold

The gold loan rate per gram differs based on the purity of the gold you pledge. Generally, 24-carat gold, which is purer than 22-carat gold, yields a higher loan amount per gram. For instance, if 24-carat gold is valued at Rs. 5,000 per gram in the market, you could receive up to 75% of that value, which would be Rs. 3,750. On the other hand, 22-carat gold, being slightly less pure, may have a market value of around Rs. 4,600 per gram, resulting in a lower loan amount per gram. Lenders, including Bajaj Finance, offer loans up to 75% of the gold’s value, and the amount varies according to the current market price and gold’s weight. It is important to note that most lenders only accept gold of 22-carat or 24-carat purity for loans, with the value being assessed based on its weight and purity. The difference in value between the two purities is a key determinant in how much loan amount you can expect, making it crucial to assess the purity before applying for a loan.

Gold loan per gram eligibility and calculation

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 70 and own gold jewellery.
  • Gold purity: Gold must be 18-22 karat, commonly accepted for higher valuation.
  • Weight of gold: The total weight of the jewellery helps determine the overall loan amount.
  • Loan-to-value (LTV) ratio: Up to 75% of your gold’s market value can be sanctioned as a loan.
  • Example: If you pledge 100 grams of 22-carat gold at ₹4,600 per gram, your gold's value is ₹4,60,000. You can get a loan of up to ₹3,45,000 at 75% LTV.
  • Other considerations: Some lenders may require a minimum gold weight and consider market trends while evaluating gold price.

You can use the Bajaj Finserv Gold Loan calculator to check your gold loan eligibility per gram and get an estimate instantly.

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 gold jewellery, there is no need for income proof or extensive financial documents, which makes approval faster and more convenient. To apply, you just need any one of the following KYC documents:

  • 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.

What affects the gold loan rate per gram?

Several factors influence the gold loan rate per gram, including the current market price of gold, the purity of the pledged gold, and the lender’s loan-to-value (LTV) ratio. Market prices fluctuate daily, so the rate per gram is subject to change accordingly. Purity is another crucial factor, with 24-carat gold fetching a higher loan value per gram than 22-carat gold. The LTV ratio, usually capped at 75% by lenders like Bajaj Finance, determines how much of the gold’s market value you can borrow. Seasonal offers or promotional schemes by lenders may also affect the gold loan rate. Additionally, economic factors such as inflation, demand for gold, and international market trends influence gold prices, which in turn affect the loan rate per gram. Borrower-specific factors like repayment history, income level, and financial stability may also play a role in determining the rate. It is essential to stay updated on these elements to ensure you get the best possible loan value per gram of gold.

How to check the current gold loan rate per gram

To check the current gold loan rate per gram, you can visit the official website of your chosen lender or use their online tools. Bajaj Finance, for instance, provides an online gold loan calculator, allowing you to estimate the loan amount based on the weight, purity of your gold, and the prevailing market rates. Many financial institutions also regularly update their websites with current gold loan rates. You can also visit local gold loan branches to inquire about the rates in person. Since gold prices fluctuate daily due to market conditions, it is advisable to check the rate on the day you plan to apply for the loan. Keep in mind that the rate will also depend on the gold’s purity—24-carat gold typically attracts higher loan rates than 22-carat. Comparing rates across different lenders ensures you secure the best deal, as some may offer promotional rates or seasonal discounts on interest rates.

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 gold 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.

What factors affect the gold loan rate per gram?

Several factors influence the gold loan rate per gram, including the purity of the gold, its weight, and market fluctuations. Bajaj Finance offers up to 75% of the gold’s value. The gold loan rate per gram is also affected by the loan-to-value (LTV) ratio, the borrower’s repayment ability, and prevailing economic conditions. Higher gold purity and market price will increase the loan amount per gram.

How much gold loan can I get per gram?

Bajaj Finance offers up to 75% of the market value of the gold pledged. The loan amount per gram depends on the purity of the gold (22 or 24 carat) and its current market value. For instance, if the market value of gold is Rs. 5,000 per gram, you can avail a gold loan for per gram up to Rs. 3,750, depending on the purity and lender’s LTV ratio.

What is the gold loan rate per gram for 22-carat gold?

For 22-carat gold, Bajaj Finance typically offers up to 75% of the market value. The gold loan rate per gram is calculated based on the gold’s purity and the current market price. For example, if 22-carat gold is valued at Rs. 4,800 per gram, you can avail a loan against gold per gram up to Rs. 3,600, depending on the lender’s assessment and market trends.

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