Gold Loan Calculator

The eligibility criteria for a Gold Loan can vary depending on the lender. Some common factors taken into consideration are: 

1. Ownership of Gold: You need to own gold jewellery, coins or ornaments that can be pledged as collateral for the Loan.
2. Age: You need to be at least 18 years old to apply for a Gold Loan. Some lenders may have a higher minimum age requirement.
3. Identification: You need to provide a valid proof of identity such as a Passport, Driving Licence or Aadhaar Card.
4. Purity of Gold: The gold you pledge must meet the lender's purity standards. Usually, gold jewellery with a purity of 18 karats or higher is accepted.
5. Loan Amount: Lenders can have minimum and maximum Loan amount requirements.
6. Loan Purpose: While Gold Loans can be used for different purposes, some lenders may have restrictions on how the Loan proceeds can be used.
7. Credit History: Unlike other types of Loans, Gold Loans do not require a good credit score or credit history since the gold acts as a collateral.

To calculate the Gold Loan amount per gram, the following formula is used: 

Gold Loan amount per gram = (Total Value of Gold x Loan To Value Ratio) / Total Weight of Gold

Here is a breakdown of the formula:

1. Total Value of Gold: Multiply the weight of your gold in grams by the current market price per gram, also known as the Gold Rate. This gives you the total value of your gold.
2. Loan to Value Ratio: This is the percentage of the total value of the gold that the lender is willing to lend. It varies across lenders, but usually falls between 70% and 90%.
3. Total Weight of Gold: This is the total weight of the gold you're pledging as collateral, usually measured in grams.

Illustration:

Suppose you have 50 grams of gold with a market rate of Rs 50 per gram. The total value of your gold will be Rs 50 x 50 = Rs 2,500. If the lender offers a Loan To Value ratio of 80%, the Loan amount per gram will be calculated as: 2,500 x 0.80 / 50 = Rs 40

So, for every gram of gold you pledge, you will receive a Loan amount of Rs 40.

T&Cs.