Gold Loan on 100 Gram Gold: Maximum Amount Available
Table of Contents
The maximum loan on 100 grams of gold in India turns on two things: the applicable loan-to-value cap and the purity of the gold. For a loan of this size, which generally runs into several lakhs, the 75% LTV tier applies. This guide explains the gold loan 100 gram LTV calculation and what determines the final figure.
How the Loan Amount on 100 Grams of Gold Is Calculated
The calculation is done in 3 steps. The purity fraction is multiplied with the weight to get the net pure gold weight. The net pure gold weight is multiplied with the current gold rate per gram and finally the LTV cap is applied.
This is clear from a worked example . Take 100 grams of 22 karat gold which is about 91.6% pure, so you have about 91.6 grams of pure gold. The assessed value works out to about ₹8,42,720 at an indicative rate of ₹9,200 a gram. Since the loan size is greater than ₹5 lakh, the LTV applicable is 75%, resulting in a maximum loan of approx. ₹6,32,040.
The rate is for illustrative purposes only here. Gold prices are updated daily and the exact amount is confirmed at the branch when the physical valuation of the gold is done. The actual amount of gold loan received by the borrower for 100 grams of gold is determined by the rate on the day of pledge and the certified appraiser’s assessment.
Step-by-Step Worked Example
- Determine purity- 22-karat gold is approximately 91.6% pure.
- Calculate pure gold weight- 100g × 91.6% = 91.6g of pure gold.
- Apply the market rate- 91.6g × ₹9,200 (illustrative) ≈ ₹8,42,720 assessed value.
- Apply the LTV cap- ₹8,42,720 × 75% ≈ ₹6,32,040 maximum loan.
Where the gold is jewellery, the appraiser weighs only the gold portion, so stones and clasps are excluded from the valuation.
LTV Ratio for Gold Loans: What the Regulator Allows
The loan-to-value caps are determined by the RBI and are tiered by loan size: 85% for loans up to ₹2.5 lakh, 80% for loans above ₹2.5 lakh and up to ₹5 lakh, 75% for loans above ₹5 lakh. So a loan of 100 grams of gold is always above Rs 5 lakh. So the 75% tier is the relevant one for a loan on 100 gram gold India scenario.
The cap is on the net gold value, not counting the weight of non gold parts (stones, clasps etc). One thing to keep in mind: Gold loans taken for agricultural purposes may be treated differently than personal or consumption loans. So a borrower taking gold for an agricultural purpose should confirm the applicable terms with the lender. Most borrowers pledging 100 grams will find the 75% slab and the same caps common across banks and NBFCs.
Loan Amount by Gold Purity: 18K, 20K, 22K, and 24K
The table below uses an illustrative rate of ₹9,200 per gram of 24-karat gold, scaled by purity. All four rows produce a loan above ₹5 lakh, so the 75% slab applies throughout.
|
Purity |
Pure Gold in 100g |
Indicative Market Value (INR) |
Max Loan at 75% LTV (INR) |
|
24K (~99.9%) |
~99.9g |
~9,19,080 |
~6,89,310 |
|
22K (~91.6%) |
~91.6g |
~8,42,720 |
~6,32,040 |
|
20K (~83.3%) |
~83.3g |
~7,66,360 |
~5,74,770 |
|
18K (~75.0%) |
~75.0g |
~6,90,000 |
~5,17,500 |
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.
The gold price used is illustrative; the actual disbursal depends on the rate on the day of application. Higher purity means more net gold and therefore a larger loan for the same 100-gram weight.
What Happens If Gold Prices Fall During the Loan Tenure
The LTV cap is not just a check at disbursement. Under the RBI rules, it must be maintained through the loan's tenure. If gold prices fall and the outstanding loan rises above the permitted LTV of the gold's current value, the lender may ask the borrower to repay part of the principal or pledge additional gold to restore the ratio.
This is standard practice across the industry rather than a hidden trap. The practical takeaway: borrowing a little below the maximum from the outset leaves a buffer, which reduces the chance of a top-up request if prices move during the tenure.
How to Apply for a Gold Loan Against 100 Grams of Gold with IIFL Finance
The process is straightforward:
- Apply online or visit a branch.
- Bring the gold and a valid ID for KYC.
- The gold is weighed and assessed by a certified appraiser, who tests purity and records the net weight.
- The loan amount is confirmed based on the assessed value and the applicable LTV tier.
- On agreement, the funds are disbursed, often the same day.
A gold loan with IIFL Finance offers both EMI and bullet repayment options, so a borrower can pick the structure that suits their cash flow. The gold loan calculator on the website can give an estimate of the 100 gram gold loan value 2026 before a branch visit.
Frequently Asked Questions
At an indicative gold price of ₹9,200 a gram and the 75% LTV applicable to loans above ₹5 lakh, 100g of 22-karat gold (about 91.6% pure) is worth about ₹8.43 lakh, implying a maximum loan of about ₹6.32 lakh. The actual amount is confirmed after physical valuation.
The higher the purity the more net gold weight you get in the same 100 grams. That increases the assessed value and therefore the loan eligible for you. And 24-carat gold will raise a bigger loan than 18-carat gold for the same weight, because there is more pure gold in that weight.
For valuation, lenders only look at the net gold weight, so stones, clasps and other non-gold parts are not considered. The appraiser weighs the gold part of the jewellery, so the valuation is based on the actual gold content and not the gross ornament weight.
Most lenders will accept gold of 18 karats (about 75% pure) and above. As a rule, gold below 18 karat is not accepted as collateral. Jewellery, ornaments and specified coins are eligible collateral; gold bars and bullion are not accepted under the current rules.
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
