How Much Can I Borrow with a Gold Loan for Education?

The loan amount you can raise with a gold loan for your education needs depends primarily on the following factors:

• Quantity of Gold: The total weight of gold jewellery you pledge determines the maximum loan amount. Generally, most financial institutions provide loans up to 75% of the market value of gold. The minimum weight of gold required to secure a loan for education typically starts at around 10 grams.
• Purity of Gold: Ornaments made of higher carats of gold purity (18carats or 24carats) fetch higher loan amounts compared to lower carats.
• Type of Ornaments: Typically, gold necklaces, chains, and bracelets fetch higher values than rings or earrings. Coins are also accepted.
• Design and Make: Fancy, lightweight ornaments with intricate designs may have lower gold weight and, therefore reduce the eligible loan amount. Antique jewellery may have higher valuations.
• Lender Terms: Each gold loan provider sets their own LTV ratio margin (there is a cap of 75%), and valuation process which affects the maximum limit.
• Credit Profile: Applicants with excellent repayment track records may get higher LTV ratios while new customers are usually given lower LTV.