A Comprehensive Guide to Understanding Gold Loan Gram Rate Calculation

When it comes to securing a gold loan, understanding how the gold loan per gram rate is determined is essential for borrowers. The gold loan gram rate plays a crucial role in determining the amount of money a borrower can access by pledging their gold as collateral. This rate depends on several factors, including the purity of the gold, the prevailing market rate, and the lenders policies. Keep reading to understand how these elements come together to influence the rate.

Bajaj Finserv Gold Loan

When it comes to securing a gold loan, understanding how the gold loan per gram rate is determined is essential for borrowers. The gold loan gram rate plays a crucial role in determining the amount of money a borrower can access by pledging their gold as collateral. This rate depends on several factors, including the purity of the gold, the prevailing market rate, and the lenders policies. With Bajaj Finserv Gold Loan, you can access competitive interest rates, high per gram value, and flexible repayment options, ensuring a seamless borrowing experience. Keep reading to understand how these elements come together to influence the rate.

Factors affecting the gold loan gram rate in India

Gold purity

The purity of the gold being pledged significantly affects the gold loan gram rate. Lenders typically accept gold jewellery with a purity of 18 to 24 karats. The higher the purity, the higher the rate at which the gold is valued. For example, 24-karat gold, being of the highest purity, will fetch a higher loan value compared to 18-karat gold. Institutional lenders like Bajaj Finance use the most accurate and advanced karat meters to evaluate the purity of the gold, ensuring that borrowers receive the most value for their gold.

Gold’s market rate

The market price of gold is another critical factor in determining the gold loan gram rate. This rate fluctuates daily based on global and local market conditions. The prevailing market rate of gold in a specific location, such as Kolkata, will directly impact the loan value. For instance, if today’s gold rate in Kolkata is Rs. 7,000 per gram, the amount a borrower can access depends on the percentage of the golds value that the lender is willing to offer, typically up to 75%. A higher market price means a higher loan amount that can be availed.

Loan-to-value (LTV) ratio and lender’s policies

The loan-to-value (LTV) ratio is the percentage of the golds market value that a lender is willing to lend. Typically, lenders offer up to 75% of the golds current market value as a loan. This ratio, along with the lenders internal policies, determines the loan amount.

Understanding the factors that impact the gold loan gram rate, such as gold purity, market rates, and the LTV ratio, is essential for borrowers. Bajaj Finserv Gold Loan combines these with competitive rates and customer-centric benefits. Here are the top 5 advantages of choosing this loan option:

• Transparent and accurate gold valuation with competitive rates.

• Borrow from Rs. 5,000 to Rs. 2 crore, based on gold weight and purity.

• Retrieve part of your gold early by repaying a portion of the loan.

• Get complimentary insurance on your pledged gold, covering against theft or loss.

• Enjoy a convenient repayment schedule, with no prepayment or foreclosure fees.

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