Gold Loan per Gram at Best Rates
Introduction to Gold Loan
Gold loan per gram When you need quick funds, a gold loan is the most reliable and convenient option. You can pledge your gold jewellery and get immediate cash without selling your valuable assets. Most banks and NBFCs offer gold loans per gram based on the current market value of gold.
What is a Gold Loan?
A gold loan is a secured loan where you pledge your gold ornaments in exchange for funds. The loan amount depends on the purity and weight of the gold. It’s a simple way to meet your short-term financial needs without a credit score dependency.
Gold Loan Per Gram Rate Explained
The gold loan per gram rate is the amount lenders provide for each gram of gold. It varies based on the current gold price. As of today, lenders may offer ₹4,000 to ₹5,500 per gram depending on purity and market conditions.
Top Benefits of Taking a Gold Loan
Quick Disbursal: Most lenders disburse gold loans within 30 minutes.
Minimal Documentation: Only basic KYC documents like Aadhaar and PAN are required.
No Credit Score Required: Your credit history doesn’t affect your gold loan eligibility.
Flexible Repayment: Choose from bullet, EMI, or overdraft repayment options.
Safe Custody: Your pledged gold is stored securely by the lender.
Who Can Apply for a Gold Loan?
Anyone aged 18 and above, owning gold jewelry, can apply. Salaried individuals, self-employed professionals, farmers, and even housewives are eligible. There’s no income proof required.
Gold Loan Eligibility Criteria
- Indian citizen
- Age 18 to 70 years
- Own gold jewelry with 18 to 24 karat purity
- Valid ID and address proof
Documents Required for Gold Loan
- Aadhaar card
- PAN card
- Passport size photo
- Address proof (Electricity bill, voter ID, etc.)
No income proof is needed. Lenders focus on the value of the gold you pledge.
Interest Rates on Gold Loan
Interest rates for gold loans start from 7% to 14% per annum. The rate depends on the loan amount, tenure, and the borrower’s profile. Some lenders also offer schemes with zero processing fees.
How to Apply for Gold Loan Online
- Visit the lender’s official website
- Fill in the gold loan application form
- Schedule a branch visit or doorstep gold valuation
- Get your gold evaluated and documents verified
- Loan is disbursed instantly
Types of Gold Loans in India
Term Loan: Borrow a lump sum and repay in EMIs
Overdraft Facility: Use funds as needed, pay interest only on the amount used
Bullet Repayment: Pay interest during tenure and principal at the end
Choose the one that fits your needs best.
How is the Gold Loan Amount Calculated?
Lenders evaluate your gold’s purity and weight. Suppose you pledge 50 grams of 22K gold and the gold loan per gram rate is ₹5,000, your maximum eligible loan would be ₹2.5 lakhs. However, most banks lend up to 75% of the value due to RBI guidelines.
Loan Tenure for Gold Loans
Loan tenure ranges from 3 months to 36 months. Some lenders offer renewal options at the end of the term. Choose a shorter tenure if you wish to repay quickly.
Repayment Options for Gold Loan
- Regular EMI: Pay both principal and interest monthly
- Bullet Payment: Pay interest monthly, principal at the end
- Overdraft: Flexible payment with interest on used amount only
Each option offers different advantages. Choose based on your repayment capacity.
Top Banks and NBFCs Offering Gold Loans
- Muthoot Finance: ₹5,000 per gram, doorstep service
- Manappuram: Quick disbursal, competitive interest
- HDFC Bank: Online application, 7.5% p.a. starting rate
- ICICI Bank: ₹1,500 to ₹1 crore loans
- Axis Bank: 18K to 24K jewelry accepted
Always compare offers before applying.
Gold Loan vs Personal Loan
- Gold Loan is secured, lower interest, faster approval
- Personal Loan is unsecured, higher interest, more documentation
If you have gold, a gold loan is the more economical choice.
Factors That Affect Gold Loan Per Gram Rate
- Gold Market Price: Directly influences the gold loan per gram
- Gold Purity: 24K fetches higher rates than 22K or lower
- Loan-to-Value Ratio (LTV): As per RBI, max 75% of gold value
- Lender Policies: Each lender may have a different pricing formula
Keep track of gold prices before applying.
Tax Benefits on Gold Loan
There are no tax exemptions unless the gold loan is used for business or asset purchase purposes. However, interest paid is not deductible for personal expenses.
Common Mistakes to Avoid
- Pledging gold with low purity
- Ignoring repayment timelines
- Not comparing interest rates
- Choosing long tenure unnecessarily
Be informed to avoid loan traps.
FAQs on Gold Loan
Q1: What is the maximum gold loan I can get per gram?
Ans: It depends on the current market rate. As of now, ₹4,000 to ₹5,500 per gram is typical.
Q2: Is my gold safe with the bank?
Ans: Yes, your gold is stored securely in vaults with insurance coverage.
Q3: What if I fail to repay the gold loan?
Ans: Lender may auction the gold after a grace period. Always repay on time.
Q4: Can I foreclose my gold loan early?
Ans: Yes, you can repay early. Some lenders charge a small foreclosure fee.
Q5: How long does it take to get a gold loan?
Ans: Disbursal is usually within 30 to 60 minutes after valuation.
Conclusion
A gold loan is the fastest way to access cash by leveraging your gold assets. With high gold loan per gram rates, flexible repayment, and instant disbursal, it is ideal for emergencies or business needs. Compare offers, evaluate gold prices, and choose wisely.
Apply for a gold loan today and turn your idle gold into active capital.
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