If you own gold jewellery, you may have considered leveraging its value to secure a gold loan for your financial needs.
The price of gold plays a crucial role in determining the loan amount you can obtain against your gold jewellery.
Gold prices are subject to market fluctuations, driven by factors like global economic conditions, inflation, geopolitical tensions, and currency movements. As gold prices rise and fall, it directly influences the loan amount you can avail against your gold jewellery. Bajaj Finance considers the purity and weight of the gold jewellery while determining the loan value. Therefore, when gold prices are high, you may be eligible for a larger loan amount due to the increased value of your gold jewellery.
To calculate the loan amount against your pledged gold jewellery, you can simply use our online gold loan calculator. This will help you plan your financial journey better.
Let us explore how the pricing of gold jewellery, specifically the price of gold jewellery per gram, affects the gold loan and how you can calculate the value of your gold jewellery for borrowing purposes.
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.
