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Gold Loan Per Gram
While availing a gold loan, the per gram rate of gold is the value you get for one gram of gold that you are going to pledge. However, this per gram rate depends on several factors, like the purity of the gold ornaments, rate of gold of a certain purity on that particular day, among others. All these are taken into consideration to calculate the per-gram rate of gold.
This is a well-known fact that when the market price of gold rises, the loan amount that can be obtained against a certain quantity of gold decrease. And, when the price of gold decreases, the loan amount that one can avail against the same quantity of gold also increases. As India’s Most Trusted Financial Services brand*, Muthoot Money checks the present day’s gold rate and the purity of the ornaments you are going to provide before deciding the loan amount that can be availed.
Here’s An Example:
Calculating the Gold loan amount using the per gram rate is very simple. For example, if someone has 10 grams of 22-carat gold and the per gram rate is INR 4000, the total market value of the gold items is INR 40,000. This means that he or she can borrow up to INR 30,000 (75% of the total market value) against the gold ornaments.
So, if you want to find out the loan amount you can avail, it is best to refer to the current market price of 22 carat precious metal. Or, you can also use our online calculator for this purpose. Muthoot Money offers one of the best per gram rates for gold loans which means that the loan amount you are eligible for becomes significantly higher.
Other than the purity, weight, and average price, the per gram rate of gold also depends on factors like the varying market price of gold across different states and cities due to demand, taxes, and transportation costs.
Gold Loan with Muthoot Money
The reason behind investing in gold is very simple - gold investments always guarantee high returns. These investments can be in any form of gold coins, bars or jewellery. This precious metal also has a high sentimental value, is considered auspicious, and holds great significance in Indian culture.
Gold items are also considered a reserve for those rainy days. You can get a gold loan by pledging your gold ornaments and use the money to cover any unexpected expenses. Over the years, these secured loans have become one of the easiest and fastest ways to arrange funds to get over a temporary financial crisis.
At Muthoot Money, you can explore a wide range of Gold loan schemes and choose the one that suits you the best. The minimum tenure of our gold loan is 7 days. The maximum tenure is 12 months for normal schemes.You can pre pay the loans if you so desire no pre-payment charges.
Benefits of Availing a Gold Loan
- Fast loan disbursal
- Customer-oriented services
- Minimal documentation
- In-house gold evaluation
- Get minimum loan amount of INR 1500
- No maximum limit
- Pre-payment option with no penalty
- Secure vault to ensure safe custody of gold ornaments
- Prompt customer service within a shorter response time
- Part release of gold ornaments
Factors That Affect Gold Prices in India
- Inflation
- Demand and supply
- Government gold reserves
- Interest rates
- Global trends
- Import duty
- Equation of Rupee and Dollar
Eligibility
Anyone above the age of 21 years can avail a gold loan from Muthoot Money. We also have an online eligibility calculator that determines the amount of gold you are eligible for based on the amount of gold you have and the purity of the gold.
Service Charges relating to Gold Loan
| SL No. | Type of Charges | Corporate | Rate of charges applicable | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 1 | Service charges -Fresh loan- Rate applicable on loan amount(IPL) |
Southern Branches |
IPL (1%) (For 12 months period only) | ||||||||||
| 2 | Service charges -Fresh loan- Rate applicable per account (ZIL/ZIP) |
ALL |
ZIL/ZIP-Rs.50/loan | ||||||||||
| 3 | Service charges on fresh loan under MEI scheme |
ALL |
0.60% of loan amount | ||||||||||
| 4 | Top-up services charges - Rate applicable on enhnaced amount |
All |
2% of enhanced amount (For GL schemes having 1st slab ROI <15% with rebate facility) | ||||||||||
| 5 | Security charges- Fresh loan |
Rest of India |
0.15% of loan amount- Minimum Rs.100/- and Maximum Rs.1,000/- | ||||||||||
| 6 | Token charges- (For schemes except given in Sl no.1, 2, 10 & 11 |
Southern Branches |
Loan up to Rs.1,00,000/- --> Rs.20/- Above Rs.1,00,000/- --> Rs.100/- Where 1st slab interest rate is <13% after rebate, other cases Rs.50/- |
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| 7 | SMS charges | ALL | Rs.5/per quarter at the time of closure or renewal | ||||||||||
| 8 | Notice Charges (Applicable for loans under all schemes) | Southern Branches
Rest of India |
3 ordinary notice Rs.30/each and 4th notice-RegisteredRs.100/-
3 ordinary notice Rs.30/each and 4th notice-RegisteredRs.100/- Auction Notice charges Rs.120/- |
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| 9 | Token lost charges (Applicable for loans under all schemes) |
ALL |
Rs.25/-(in addition to cost of stamp paper applicable) | ||||||||||
| 10 | Safe Custody Charges |
ALL |
Rs.5/per gram per month, payable at the time of closure or renewal |
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| 11 | Stamp duty levied by State Governments |
States:- Karnataka , Andhra and Rajasthan |
Actuals where ever applicable |
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| 12 | GCS |
Southern Branches |
1.Rs.999/- per 6 months (in case the limit is not used over a period of 6 months) 2.If the transaction is through branches then Rs.99/- per transaction |
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| 13 | GCL |
Rest of India |
1.Rs.999/- per 6 months (in case the limit is not used over a period of 6 months) 2.Part release charges of Rs.499/- per transaction 3.If the transaction is through branches then Rs.99/- per transaction |
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| 14 | Loan @ Home charges |
ALL |
Upto Rs.500/- for loan @ home services |
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| 15 | CAC (Credit Appraisal Charges) – If total exposure > Rs.3 L |
Southern Branches |
|
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| 16 | Door to Door collection charges (Follow up for interest / loan recovery) |
Southern Branches |
Rs.150/- plus GST per customer for recovery made through customer follow up visit |
Gold Loan Per Gram FAQs
Eligibility
For 1 gram of gold, you will be able to avail a loan amount equivalent to 75% of the market price of the metal on that particular day. Muthoot Money offers the highest per gram rate for a gold loan.
To calculate the gold loan amount, you will have to check the rate of gold on that particular day. This per gram gold rate is multiplied by the weight of the gold ornaments. Once you have the value of the gold ornaments you are going to pledge, you can calculate the loan amount using the LTV ratio of 75%. Usually, the LTV ratio for a gold loan is 75%. This means that the loan amount will be equivalent to 75% of the gold value. At Muthoot Money, you can also calculate your eligibility for availing a gold loan by using the Gold Loan Calculator.
The purity of the gold ornaments you are going to pledge and the average market price of gold of that particular purity are two key factors that affect the per gram rates while availing a gold loan. The purer the gold is, the higher its value is going to be. For example, 22 karat gold ornaments have a higher value than 18-karat or 20 karat ones.
No, Gold Loan can be availed against the pledge of gold ornaments only.
The rate per gram of gold for gold loans depends on the quality of gold pledged and the lender. Lenders typically provide a percentage of the gold’s current market value as the loan amount, with the interest rate depending from lender to lender. The actual rate per gram can fluctuate based on the market conditions and specific terms the lender sets. For the most accurate rate per gram for gold loans, it is best to check directly with lenders or financial service providers.
Several factors affect the gold loan per gram rate, including the purity of the pledged gold, the market price of the gold, and the policies set by the lender. Additionally, interest rates, economic conditions, and the borrower’s creditworthiness are some of the factors that influence the loan rate. Local taxes and fees and demand and supply changes in the gold market also play a crucial role. Hence, always check with specific financial institutions for the most current and up-to-date rates.
The time in which you can get a gold loan per gram depends from lender to lender. Ideally, you can get a gold loan within a few hours to one business day if you choose to raise funds from Muthoot Money. The process involves evaluating the purity of the gold, verifying personal information, and signing the loan agreement. Some banks and financial institutions offer instant loan approval and disbursement, which makes it easy for borrowers to get funds immediately when needed.
The interest rates for gold loans per gram vary from lender to lender. Muthoot Money, a prominent lender, offers competitive rates that are hassle-free. Specific factors influencing the interest rate for gold loans include the loan amount, purity of the gold, borrower’s creditworthiness, and current market conditions. Hence, for the best deals, borrowers must compare rates, including Muthoot Money, for the most accurate interest rates.
The tenure for a gold loan is flexible, typically ranging from a few months to a few years, depending on the lender and the borrower's preference. Muthoot Money offers flexible repayment options, with tenures ranging from three to twelve months, although an extension may be available upon request. You can choose a repayment plan that suits your financial situation, whether monthly instalments or bullet payments. Always check with the specific lender for precise tenure options and terms.
The documentation required for a gold loan is minimal. It usually includes proof of identity, address, and the pledged gold. Some financial institutions and NBFCs may also require additional KYC documents to disburse the loan amount. Hence, it is always advisable to check with the specific lender for any other documentation and ensure you have all the necessary documents to facilitate a smooth gold loan application process.
The processing fees depend on the lender to whom you wish to apply for a gold loan. Typically, these fees are charged based on the percentage of the loan amount rather than per gram of gold pledged. That is why it is essential to check with individual lenders for specific details, as they may have different terms and fee structures associated with their gold loan offerings. Always review the terms and conditions beforehand to understand the complete cost breakdown before proceeding with the gold loan application.
