How is the value of my gold calculated for a gold loan?

The value of your gold for a loan is typically determined by:

• Purity: The higher the purity (measured in karats), the higher the value.
• Weight: The loan amount is directly proportional to the weight of the gold.
• Market Rate: The value is calculated based on the current market price of gold per gram.

The Loan-to-Value Ratio (LTV) is a percentage set by the financial institutions and tends to vary from one financial institution to another. The LTV is generally up to 75%, indicating the maximum loan amount they'll provide based on the gold's value.