Gold Loan Per Gram Rate Today - Check Live Value

What is Gold Loan Per Gram Rate?

The gold loan per gram rate refers to the loan amount you may be eligible to receive against each gram of eligible gold pledged as security. It is not the same as the market price of gold per gram.

For example, if the applicable value of eligible gold is ₹6,000 per gram and the applicable loan-to-value (LTV) ratio is 75%, the eligible loan amount could be up to ₹4,500 per gram, subject to our assessment, applicable scheme and other terms.

The actual loan amount depends on factors such as the purity and net weight of the gold, the reference gold price used for valuation, the applicable LTV and the policies.

With L&T Finance, gold jewellery and ornaments are assessed to determine the eligible loan amount. The company states that gold is valued based on its actual purity or the closest applicable purity, using the lower of the relevant average closing price over the preceding 30 days or the closing price on the preceding day, as published by the India Bullion and Jewellers Association Ltd. (IBJA).

Gold Loan Per Gram Calculator

A gold loan per gram calculator can help you get an indicative estimate of the loan amount you may be eligible for before applying.

Basic formula:

Estimated Gold Loan Amount = Net Gold Weight x Applicable Gold Value per Gram x Applicable LTV

For example, assume:

This is only an illustration. The actual amount offered can vary based on the purity, valuation methodology, scheme, applicable LTV and other terms.

A calculator is useful for planning, but the final loan amount is determined after the gold is physically assessed and the required verification is completed.

How is Gold Loan Per Gram Calculated?

The per-gram loan amount is calculated after assessing the eligible gold pledged as collateral. The calculation generally involves these steps:

1. Assess the purity of gold: The caratage or fineness of the jewellery is checked because the value of gold depends on its purity.

2. Determine the net gold weight: The weight of stones, lac, alloys, strings, fastenings and other non-gold components may be excluded while determining the eligible gold weight. L&T Finance follows a net-weight methodology for gold valuation.

3. Determine the applicable gold value: The reference price applicable to the purity of the gold is considered as per our valuation methodology.

4. Apply the applicable LTV: The eligible loan amount is determined after applying the applicable LTV to the assessed value of the gold.

Therefore, simply multiplying the jewellery's gross weight by the day's retail gold price may not give you an accurate estimate of your eligible gold loan.

Today's Gold Loan Rate Per Gram - L&T Finance

The gold loan per gram amount can change with gold prices and the valuation of the pledged jewellery. It is therefore important to distinguish between the gold market rate per gram and the loan amount available per gram.

L&T Finance assesses the eligible gold based on its purity and net weight and applies its prescribed valuation methodology. The company states that the reference value is based on the lower of the applicable 30-day average closing price or the preceding day's closing price for the relevant purity, as published by IBJA.

This means the amount you may receive per gram cannot be represented by one fixed figure for all borrowers. Your final eligible amount will depend on the gold you pledge and the applicable loan scheme and terms.

L&T Finance offers gold loans starting from ₹5,000 and up to ₹1 crore, with interest rates starting at 11.75% p.a., subject to applicable terms and eligibility.

Factors Affecting Gold Loan Per Gram Rate

Several factors can influence the amount you may be eligible to borrow per gram:

• Gold purity: Higher-purity gold generally has a higher intrinsic value than lower-purity gold.
• Net gold weight: The eligible gold content is considered rather than simply the gross weight of jewellery.
• Reference gold price: The valuation is linked to the applicable reference gold price.
• LTV ratio: The loan amount is limited to the applicable percentage of the assessed gold value.
• Type of gold pledged: We have specific policies regarding the forms of gold they accept as collateral.
• Loan scheme: Different schemes may have different applicable terms and pricing.
• Interest and charges: These affect the overall cost of borrowing even though they do not directly determine the gold's valuation.

It is also important to remember that making a gold loan decision only by looking at the highest advertised per-gram amount may not give you the lowest overall borrowing cost. Compare the interest rate, processing fee, repayment terms and other applicable charges before applying.

L&T Finance Gold Loan Interest Rates & Charges

L&T Finance offers gold loans with interest rates starting at 11.75% p.a., subject to eligibility and applicable terms. The company also states that processing fees can be up to 0.50% of the loan amount plus applicable taxes, depending on the scheme.

Other applicable charges may include:

Actual charges depend on the applicable gold loan scheme and are disclosed in the relevant loan documents.

Eligibility Criteria

To apply for a gold loan with L&T Finance, you should generally:

• Be an Indian resident.
• Be within the applicable age range of 18 to 70 years.
• Be a salaried or self-employed individual.
• Own eligible gold jewellery or ornaments that can be pledged as collateral.
• Meet our applicable KYC and other requirements.

L&T Finance states that eligible gold should generally have purity between 18 and 24 karats. Final eligibility remains subject to the applicable scheme and verification.

Documents Required

Gold loans typically require minimal documentation. L&T Finance lists the following documents:

• PAN card.
• Proof of possession of Aadhaar number or another accepted KYC document.
• Address proof such as Aadhaar, passport, driving licence or voter ID.
• Income proof, where required based on the loan requirement.

The exact documents may vary depending on the applicant and loan scheme.

How to Apply for a Gold Loan Online

You can start your gold loan application online and complete the required gold assessment and verification through L&T Finance's process.

Step 1: Check your eligibility

Review the applicable eligibility criteria and estimate the loan amount you may need.

Step 2: Keep your documents ready

Keep your KYC and other required documents available to avoid delays.

Step 3: Submit your application

Provide the required details through the applicable L&T Finance application journey.

Step 4: Get your gold assessed

The eligible gold jewellery or ornaments are assessed for purity and net weight to determine their value.

Step 5: Complete verification and documentation

Once the required verification and documentation are completed, the loan can proceed for approval.

Step 6: Receive the loan amount

After approval and completion of the applicable formalities, the sanctioned amount is disbursed to your bank account. L&T Finance states that disbursement can take around 15-30 minutes after the required documents and gold have been submitted, subject to applicable conditions.

Benefits of Choosing L&T Finance for Gold Loan

A gold loan can provide access to funds without requiring you to sell your jewellery. With L&T Finance, key features include:

• Loan amounts from ₹5,000 to ₹1 crore, subject to eligibility and applicable scheme.
• Interest rates starting at 11.75% p.a., subject to applicable terms.
• Minimal documentation with e-sign enabled documentation.
• Quick disbursemen, with L&T Finance stating that eligible loans can be disbursed in around 15-30 minutes after submission and verification.
• Secure storage of pledged gold in strongrooms with centralised monitoring and controlled access.
• Multiple repayment options, depending on the applicable gold loan scheme.

Before borrowing, consider the total cost of the loan and choose an amount that you can comfortably repay.