CNN Central News & Network–ITDC India Epress/ITDC News Bhopal: Gold has always been a prized possession in Indian households. Often passed on as family heirlooms, gold has religious, spiritual, and sentimental value. This yellow metal is so versatile that, apart from being revered as jewellery, it also serves as a valuable financial asset.
A gold loan is an excellent way to access cash quickly without selling precious gold jewellery. Today, many financial institutions offer loans against gold, which can be an excellent resource during emergencies. However, to get the best value for available gold borrowers must be aware of concepts like the gold loan gram rate and how it is calculated.
Understanding the gold loan gram rate
The gold loan gram rate is the value of a gram of gold on any given day and determines the loan amount borrowers can get per gram of gold. The value fluctuates daily based on the market rate of gold. This rate is impacted by several factors, including:
- Market price of gold: The international gold price directly affects the gold rate in India.
- Purity of gold: The higher the purity (18K to 22K), the better the loan amount one can get.
- Loan-to-value (LTV) ratio: Lenders offer up to 75% of the gold’s value based on RBI regulations.
Staying updated on gold rates of different cities such as today’s gold rate in Kolkata is essential for making smart financial decisions, whether someone is buying, selling, or considering a gold loan. Bajaj Finance’s gold rate page provides real-time updates, helping them track prices accurately and make confident choices as market rates change.
How is the gold loan gram rate calculated?
The gold loan gram rate calculation involves assessing the gold’s purity and weight. Here is a step-by-step breakdown of the process.
Step 1: Gold is evaluated using a karat meter to determine its purity, typically between 18K and 22K for gold loans.
Step 2: The net weight of gold (excluding stones and other materials) is taken into account.
Step 3: Based on the purity and current market rate, the loan-to-value ratio is applied to calculate the loan amount.
For example, with 10 grams of 22K gold at a gram rate of Rs. 4,700 and an LTV of 75%, the loan amount would be Rs. 35,250.
Borrowers can always use a reliable tool like the Bajaj Finserv Gold Loan Calculator to get an accurate loan estimate before applying.
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