Gold loans have become a popular choice for securing quick funds due to their fuss-free and straightforward process. The gold loan amount you can avail depends primarily on the gold loan gram rate. This article will guide you on how to calculate your gold loan amount using the gram rate.
Essentially, the refers to the amount you receive per gram of your gold jewelry. To figure out how much you can borrow, you'll need to know the net weight of your gold and its purity. Financial institutions typically lend up to a certain percentage of the gold's market value, generally around 75%.
Start by getting your gold jewelry weighed to determine its net weight. Then, you need to factor in the gold's purity, typically measured in karats (K). If you have 22K gold, for instance, the purity factor is 0.916 (22K/24K). Multiply your gold's net weight by its purity factor to calculate its pure gold content.
Next, refer to the current gold rate in Mysore or your respective city. Note that gold prices fluctuate daily based on global market dynamics, so ensure you check the rate on the day you plan to apply for the loan. Suppose the market price is INR 3,000 per gram for 24K gold, and you have 20 grams of 22K gold. The value of your gold is 20 x 0.916 x 3,000, equating to INR 54,960.
Finally, adjust this amount by the loan-to-value ratio the lender is offering. For instance, with a 75% loan-to-value ratio, your maximum eligible loan amount is 75% of INR 54,960, which equals INR 41,220.
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To summarize, determining your gold loan using the gold loan gram rate involves four steps: weighing your gold jewelry, identifying its purity, obtaining the current gold rate in Mysore or your city, and applying the loan-to-value ratio specified by your lender. This calculation provides an estimate of the maximum loan amount you can receive against your gold jewelry.