18 Carat Gold Loan Rate Today: Per-Gram Value and LTV Explained
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The 18 carat gold loan rate depends on gold purity and prevailing market prices. Since 18K gold is 75% pure, the eligible loan amount per gram is lower than 22K gold. Lenders apply up to 75% LTV on the derived value, with calculations based on net gold weight after excluding stones in studded jewellery.
What Is the 18 Carat Gold Loan Rate Per Gram Today?
The 18 carat gold loan rate per gram is derived from the standard market price of 22K gold, adjusted for purity and applicable LTV limits.
Last updated: April 2026
Calculation Formula:
(18 ÷ 24) × 22K gold price × LTV ratio
For illustration:
- 22K gold price: ₹7,000 per gram
- 18K purity adjustment: 75% of ₹7,000 = ₹5,250
- Maximum LTV (75%): ₹3,937 per gram
This represents an indicative 18K gold per gram rate for loan eligibility. Actual per gram values are determined at the time of loan appraisal based on prevailing gold prices, purity verification, and lender-specific valuation methods.
How Purity Affects Your Gold Loan Amount: 18K vs 22K vs 24K
Gold purity directly impacts the LTV gold loan calculation. Higher purity results in higher per-gram valuation and loan eligibility.
|
Carat |
Purity % |
Market Value (₹/g)* |
Max LTV (75%) |
Loan Amount (₹/g) |
|
24K |
99.9% |
7,500 |
75% |
5,625 |
|
22K |
91.6% |
7,000 |
75% |
5,250 |
|
18K |
75% |
5,250 |
75% |
3,937 |
*Calculated with a sample benchmark of 22K = ₹7,000 per gram (April 2026)
This gold loan purity comparison highlights that the 18K jewellery loan value is proportionately lower due to reduced gold content.
Worked Example: Loan on 10 Grams of 18 Carat Gold
For a clear 18 carat gold loan calculation:
- Weight: 10 grams
- Purity: 18K (75%)
- 22K price: ₹7,000/g
Step 1: Convert to 18K value
₹7,000 × 0.75 = ₹5,250 per gram
Step 2: Apply LTV (75%)
₹5,250 × 75% = ₹3,937 per gram
Step 3: Total loan amount
₹3,937 × 10 = ₹39,370
This gold loan per gram example demonstrates how purity and LTV determine the final loan eligibility. Actual loan amounts may vary based on real-time gold prices, appraisal results, and lender policies.
Why Is 18 Carat Gold Common in Studded Jewellery?
18 carat gold jewellery is widely used in studded ornaments because it provides greater durability compared to higher-purity gold. The alloy composition makes it suitable for holding gemstones such as diamonds and other precious stones.
For a studded gold jewellery loan, lenders assess only the net gold weight. Stones and non-gold elements are excluded during valuation. For example, if a piece weighs 10 grams but includes 2 grams of stones, the loan is calculated on 8 grams of gold content. This ensures accurate valuation aligned with regulatory norms.
Interest Rates and Charges on an 18 Carat Gold Loan
The gold loan interest rate 18 carat does not vary based on purity. Interest rates are determined by factors such as loan amount, tenure, repayment scheme, and lender-specific policies.
Key considerations include:
- Interest rates vary across lenders and schemes
- Processing charges and other fees may apply
- Repayment options differ based on tenure and product structure
All interest rates and charges are subject to change and are disclosed at the time of loan sanction as per applicable regulatory guidelines.
Eligibility and Documents for an 18 Carat Gold Loan
For gold loan eligibility 18 carat, the basic criteria include:
Eligibility
- Minimum gold purity: 18 carats
- Applicant age: 18 to 70 years
- Indian resident with ownership of gold jewellery
Documents for gold loan
- Valid identity proof (Aadhaar, PAN, or equivalent)
- Address proof
- PAN card for higher loan amounts as per regulations
Documentation requirements are minimal and aligned with KYC norms. Final eligibility is subject to lender verification and applicable KYC norms.
How to Apply for an 18 Carat Gold Loan at IIFL Finance
The process to apply gold loan 18 carat is simple and typically involves:
- Visit the nearest branch or apply through the lender’s official platform
- Submit gold jewellery along with required KYC documents (e.g. Aadhaar, PAN Card)
- Experts at the branch will evaluate your gold based on purity, market value and net weight.
- Eligible loan amount is determined based on valuation and LTV norms
- You will be explained the entire policy, repayment options and gold loan policy at the time of loan approval only.
- After loan approval, your loan amount will get disbursed in your bank account quickly.
Note: Loan approval and disbursement are subject to verification, lender policies, and regulatory guidelines.
Compliance with RBI Norms (Effective April 1, 2026)
Gold loans in India are governed by regulatory guidelines to ensure transparency and borrower protection. Key aspects include:
- Loan-to-Value (LTV): Capped at a maximum of 75% of gold value
- Valuation process: Based on purity testing and prevailing market prices
- Interest and charges disclosure: Must be communicated clearly at the sanction stage.
- Auction and repayment norms: Governed by regulatory provisions in case of default.
- Storage and security: Gold is handled as per standard safety practices
Note: Lenders are required to comply with applicable RBI guidelines; however, specific processes may vary across institutions.
Conclusion
An 18 carat gold loan rate is determined by gold purity, prevailing market prices, and the applicable LTV cap. Since 18K gold contains 75% pure gold, the eligible loan amount is proportionately adjusted. Understanding valuation, especially for studded gold jewellery loan cases where only net gold weight is considered, helps in estimating loan eligibility. With regulated LTV limits and standardised appraisal practices, gold loans offer a structured financing option. Borrowers should review lender-specific terms, interest rates, and repayment conditions carefully, as final loan amounts and charges may vary.
Frequently Asked Questions
Yes. 18 carat gold, which is 75% pure, is accepted by most lenders in India. The loan amount is calculated on the net gold weight after deducting stones, and the eligible value is derived using the applicable LTV ratio, as per regulatory norms. The final loan amount is subject to appraisal and lender policies
The loan per gram depends on the current market price of gold and the applicable LTV ratio. Using the formula (18/24) × 22K price × LTV, the value is derived. At ₹7,000 per gram (22K) and 75% LTV, the loan works out to approximately ₹3,937 per gram. Actual values may vary based on market price and lender valuation.
The value of 18K gold is 75% of the prevailing 22K gold price. To calculate, multiply the current 22K rate by 0.75. The final valuation used for lending is based on market rates at the time of appraisal. Valuation is based on prevailing market rates at the time of loan processing.
First, determine the 22K gold price per gram. Multiply it by 0.75 to obtain the 18K equivalent. Deduct any stone weight for studded jewellery. Multiply the net gold weight by the adjusted price and then apply the LTV ratio to arrive at the loan amount. Final loan eligibility depends on lender assessment and applicable LTV norms.
Yes. 18K studded jewellery is accepted. During appraisal, non-gold components such as stones are excluded, and the loan is calculated based on the net gold content. This ensures accurate valuation and aligns with standard lending practices. Acceptance of jewellery may vary based on lender policies.
Disclaimer : The information in this blog is for general purposes only and may change without notice. It does not constitute legal, tax, or financial advice. Readers should seek professional guidance and make decisions at their own discretion. IIFL Finance is not liable for any reliance on this content. Read more
