Today’s Rate of Gold Loan Per Gram: What Borrowers Can Expect

Understanding Gold Loans and Per Gram Rates

Gold loans have emerged as a popular financing option for Indians needing quick funds without selling their precious assets. A gold loan is a secured loan where you pledge your gold jewellery as collateral and receive funds based on its value. The amount you can borrow depends primarily on the rate of gold loan per gram offered by the lender.

Today’s gold loan per gram rates typically range between ₹4,500 to ₹5,500 for 22-carat gold, depending on the lender and current market conditions. However, you won’t receive the full market value of your gold. Lenders calculate loan amounts based on the Loan-to-Value (LTV) ratio, currently capped at 75% by RBI regulations.

For those seeking a transparent and hassle-free experience, Airtel Finance offers competitive gold loan per gram rates. It also offers doorstep service for gold valuation and collection. The entire process can be completed with minimal documentation, and you can track your loan status through the Airtel Thanks App.

Factors Affecting Gold Loan Per Gram Rates

Alt text: Woman giving her gold rings for evaluation for procuring a gold loan.

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Several factors influence the gold loan interest rate you’ll receive:

Gold Purity

The purity of gold significantly affects the loan amount. Most lenders accept gold between 18–24 carats, with higher purity fetching better rates.

*Rates are indicative and vary across lenders

Market Price Fluctuations

The rates of gold loans per gram change daily based on market prices. Lenders typically set their rates based on the previous day’s closing price or that morning’s rate.

Loan Amount and Tenure

The gold loan per gram rate might vary based on your loan amount and tenure. Larger loans or shorter tenures might fetch slightly better rates from some lenders.

Lender Policies

Different financial institutions have varying policies regarding gold loan per gram rates:

• Banks typically offer lower interest rates but might have stricter eligibility criteria
• NBFCs offer quicker processing but might have slightly lower per-gram rates
• Digital lenders provide convenience, but rates vary widely

Interest Rates and Charges on Gold Loans

While the gold loan per gram rate determines how much you can borrow, the interest rate determines how much you’ll pay back.

Current gold loan interest rates in India range from:

• Public sector banks: 7.00%–9.00% p.a.
• Private banks: 9.00%–16.00% p.a.
• NBFCs: 11.00%–24.00% p.a.

Documentation and Eligibility for Gold Loans

Gold loans are known for minimal documentation requirements, making them accessible to various borrower segments. Here’s what you typically need:

Essential Documents

These are mandatory for gold loan applications:

• Identity proof (Aadhaar, PAN, Voter ID, Driving license)
• Address proof (Utility bills, Rental agreement)
• Recent passport-sized photographs
• The gold jewellery you wish to pledge

Eligibility Criteria

Most lenders require borrowers to be:

1. Indian residents aged 21 years or above
2. Owners of the gold being pledged
3. Able to provide basic KYC documents

No income proof or credit score is typically required, making gold loans accessible even to those with limited banking history or poor credit scores.

Choosing the Best Gold Loan Offer

To secure the best gold loan per gram rate and terms:

1. Compare offers from multiple lenders
2. Check the actual per-gram rate, not just the advertised rate
3. Negotiate for better terms if you have a good banking relationship
4. Consider the repayment flexibility offered

In a Nutshell

Understanding today’s gold loan per gram rates is essential for making informed borrowing decisions. By comparing different offers and considering factors beyond just the per-gram rate, you can secure the best possible deal.

If you’re looking for a transparent experience with competitive rates, consider exploring Airtel Finance Gold Loan, which offers doorstep gold evaluation and quick loan disbursal services.

FAQs

1. How is the gold loan per gram rate calculated?
   The rate is based on current market prices, typically at 75–80% of the prevailing rate to account for price fluctuations and the lender’s risk assessment.
2. Can I get a gold loan if my jewellery has precious stones?
   Yes, but lenders only consider the gold content’s value. The stones will be returned or valued separately, depending on the lender’s policy.
3. What happens if gold prices fall after I take a gold loan?
   Most lenders build in a buffer, but significant price drops might require additional collateral or partial repayment to maintain the LTV ratio.
4. How quickly can I get money through a gold loan?
   Gold loans are among the fastest loan options, with disbursals typically happening within 30 minutes to 2 hours after gold evaluation.
5. Can I use my gold loan for any purpose?
   Yes, gold loans have no end-use restrictions. You can use the funds for business needs, medical emergencies, education, or any other purpose.

References

1. World Gold Council – Indian Gold Market Statistics