# How To Calculate Gold Loan Per Gram?

Want to know the amount of gold loan per gram? Read the complete guide on per gram gold loan & the factors affecting the gold loan rate with IIFL Finance!

20 Jun,2022 10:09 IST 379 Views

Investments in gold can prove to be a helpful asset in times of monetary requirement as you can mortgage it for a gold loan when the need arises. A simple and secured financial product, a gold loan allows you to borrow money by depositing your gold belongings as collateral. Banks, as well as non-banking finance companies (NBFCs), provide gold loan services. To better assess the value of your gold, you need to calculate the gold loan per gram.

## What Is Per Gram Rate For Gold Loan?

A per gram rate refers to the amount you can borrow for every gram of gold that you pledge. This rate depends on a variety of factors such as the purity of gold and the weight of the gold item. At the same time, a 30-day average of gold prices for that quality of gold is another factor accounted for by the financier.

Let’s understand this calculation through an example.

Suppose you own 50 gms of 24-carat gold, and the per gram rate of this gold is ₹3,000. This means that the value of your gold is ₹1,50,000 and you can get a loan of up to 75% of this amount, i.e. ₹1,12,500 against it.

## Factors Affecting Per Gram Rate for Gold Loan

Apart from the purity and weight of the gold, the market rate of gold in your region will be a primary factor that affects the per gram rate for gold loans. Due to changes in demand, the gold prices keep fluctuating across India. Taxes and transportation costs may also affect the gold prices for the day. The gold rates change every day, thereby affecting the gold loan per gram rate.

For example, if you are applying for a gold loan in Maharashtra on a day when the gold price is ₹4,800 per gm and possess 50 gms of gold, you can avail of ₹1,80,000 as a gold loan (75% of ₹2,40,000).

## Other Factors To Consider While Availing Of A Gold Loan

In addition to the weight and purity of the gold, a financier may also look at your monthly income while assessing a gold loan application. This gives the lender an idea of your repayment capability. It is wise to check your monthly income before starting the application process.
However, your credit score is not considered when availing of a gold loan. Therefore, if you have a low CIBIL score, you can procure a gold loan.

## Get The Maximum Value For Your Gold With IIFL

IIFL Finance has a simple and hassle-free gold loan process that approves loan applications in 5 minutes and disburses the gold loan amount within 30 minutes. Experts at IIFL can swiftly assess the purity of the gold jewellery and the weight of the yellow metal to be used as collateral.
IIFL Finance also offers gold loans anytime, anywhere via its Money@Home Gold Loan scheme. The gold loan amount starts from as little as Rs 3,000 with no maximum limit. IIFL Finance’s simple and transparent gold loan schemes have helped its AUM from the business grow to Rs 16,228 crore as of March 31, 2022.

### FAQs

Q.1 How Is The Market Value Of My Gold Determined?

Ans. The market value of your gold is calculated according to the per gram market rate of gold on the day of the loan application. If you are pledging gold ornaments or jewellery, only the parts that are pure gold are considered valuable; other metals, stones, and gems are excluded from the calculations.

Q.2 What Affects The Gold Loan Per Gram Rate?
Ans. The weight and purity of the gold as well as the gold prices in your region on the day affect the gold loan per gram rate.

##### Get Gold Loan at the comfort of your home

Disclaimer: The information contained in this post is for general information purposes only. IIFL Finance Limited (including its associates and affiliates) ("the Company") assumes no liability or responsibility for any errors or omissions in the contents of this post and under no circumstances shall the Company be liable for any damage, loss, injury or disappointment etc. suffered by any reader. All information in this post is provided "as is", with no guarantee of completeness, accuracy, timeliness or of the results etc. obtained from the use of this information, and without warranty of any kind, express or implied, including, but not limited to warranties of performance, merchantability and fitness for a particular purpose. Given the changing nature of laws, rules and regulations, there may be delays, omissions or inaccuracies in the information contained in this post. The information on this post is provided with the understanding that the Company is not herein engaged in rendering legal, accounting, tax, or other professional advice and services. As such, it should not be used as a substitute for consultation with professional accounting, tax, legal or other competent advisers. This post may contain views and opinions which are those of the authors and do not necessarily reflect the official policy or position of any other agency or organization. This post may also contain links to external websites that are not provided or maintained by or in any way affiliated with the Company and the Company does not guarantee the accuracy, relevance, timeliness, or completeness of any information on these external websites. Any/ all (Gold/ Personal/ Business) loan product specifications and information that maybe stated in this post are subject to change from time to time, readers are advised to reach out to the Company for current specifications of the said (Gold/ Personal/ Business) loan.

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