Gold Loan on 10 Gram Gold: How Much Loan Is Available in 2026?

Ten grams on the shop scale is rarely ten grams of gold. Stones, enamel, solder and lac filling all come off before the lender counts a single rupee. Nonetheless, the 10 gram gold loan amount on a 22 carat item comes quite close to ₹1,20,000 based on the reference rate of ₹14,200 per gram and the upper limit of 85 percent LTV ratio of loans less than ₹2.5 lakh as per the RBI (Lending Against Gold and Silver Collateral) Directions, 2025, adopted from April 2026 by regulated financial institutions.

10 Gram Gold Loan Amount: Rupee Estimates by Purity (2026)

Each piece is valued at the published reference rate for its own assessed purity, so an 18 carat piece takes a rate about 18% below the 22 carat one. The table assumes 10 grams of net gold after deductions and an illustrative ₹14,200 per gram for 22 carat.

Note: All figures are illustrative in nature. The actual figures, costs, coverage ratios, and other requirements can be different based on the lender, the borrower, and the type of loan being applied for.

How Purity (Carat) Changes the Loan Amount on the Same 10 Grams

In an 18 carat item, there is 75% gold, while in a 22 carat item, there is a slight bit less than 92% gold. For 10 grams of gold, this difference will be valued at ₹22,000 with the ceiling being 85%. Modern designs of jewellery are usually 18 carat, as well as those containing stones.

Step-by-Step: How the Loan Amount Is Calculated for 10 Grams

1. Establish the rate. Lenders use the lower of the previous day's closing price and the 30-day average published by IBJA or a SEBI-regulated exchange, for the assessed purity. The illustrative 22 carat figure here is ₹14,200 per gram.

1. Establish net weight. Stones, enamel and non-gold parts are deducted. A plain chain may be close to 10 grams net; a stone-set pendant considerably less.

1. Multiply: ₹14,200 x 10 g = ₹1,42,000 collateral value.

1. Apply the slab: ₹1,42,000 x 85% = ₹1,20,700. This is the ceiling for a loan of this size; the lender may sanction below it.

The slab structure decides which percentage applies: 85% up to ₹2.5 lakh, 80% up to ₹5 lakh, 75% beyond. The LTV also holds through the tenure.

Bank vs NBFC: Which Offers More on a 10 Gram Pledge?

The old rule of thumb, banks lower and NBFCs higher, is out of date. Since April 2026 every regulated lender works to the same tiered LTV, so on a 10 gram pledge the ceiling is 85% everywhere.

The difference is in the speed and cost involved, the minimum weight requirement, and how much they get closer to the ceiling. The interest rate and costs charged vary for each product from each lender.

Interest Cost on a 10 Gram Gold Loan: 3, 6 and 12 Month Examples

Taking ₹1,20,000 as a representative loan on a 10 gram 22 carat pledge, the table shows simple interest at three illustrative annual rates.

Note: Indicative rates only. The actual amount, charges, coverages, and eligibility requirements may differ according to the lender, profile of the borrower, type of loan, and prevailing guidelines when applying.

Bullets where the principal payment is made at the end have a maximum limit of 12 months in consumption loans that can be renewed after paying off the interest. EMIs allow both interest and principal payments to be spread out over the period in such a way that the balance reduces every month.

How Many Grams of 22 Carat Gold for a Given Loan?

At an illustrative ₹14,200 per gram and the 85% ceiling, each gram of 22 carat gold supports ₹12,070, subject to lender policy.

Note: All figures are indicative. Actual amounts, fees, coverage percentages, and eligibility criteria may vary depending on the lender, borrower profile, loan category, and applicable guidelines at the time of application.

How IIFL Finance Supports Gold Loan Applicants Pledging 10 Grams

Gold loan may be available from IIFL Finance for a 10 gram pledge, provided that the product is in stock, the individual is eligible, and the collateral meets the required regulatory norms. The general pattern of gold is jewelry, which ranges in purity from 18 to 22 carats, and the age range of the borrower is 18 to 70 years. Subject to applicable regulatory requirements and lender policies, funds obtained through a gold loan may be used for various legitimate personal or business-related purposes:

• Inventory purchases ahead of festival demand for small retailers

• School, college and coaching fees

• Medical treatment and hospital deposits

• Repairs, equipment or working capital for self-employed trades

Deductions are made with the borrower watching and recorded on the certificate, charges are given in writing before signing, and the ornaments sit in safe custody until returned within seven working days of closure. For loans up to ₹2.5 lakh, the RBI Directions do not mandate a detailed credit assessment, though lenders may apply their own policies, and income paperwork is a matter of lender policy at this loan size. Unlike a sale transaction, a loan against eligible gold collateral generally allows the borrower to retain ownership, subject to repayment and the lender's applicable terms and conditions.

Conclusion

The 10 gram gold loan amount depends on net weight, the published reference rate for the assessed purity and the 85% ceiling that covers loans up to ₹2.5 lakh. With a gold price at an example of ₹14,200 per gram, 22 carat gold pledged would yield about ₹1,20,700 at the maximum limit and approximately ₹1,06,500 at 75 percent. The deductions on account of stones and non-gold components are largely responsible for discrepancies between the estimated amount and the branch offer. Valuation procedures, disclosures, and collateral handling are carried out in accordance with applicable policies and regulations.

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