What influences the amount you can borrow per gram of gold when taking a gold loan?

Many factors influence the gold loan amount sanctioned per gram:

• Purity of gold: Higher purity (e.g., 22-carat) fetches a higher value.
• Prevailing market price: The loan amount is linked to current gold rates.
• LTV ratio: 75% of the market price of the gold.
• Deductions: Stones, non-gold elements, and making charges are excluded from the value.
• Lender’s internal policies: Some may offer lower LTVs or apply additional deductions.
• Regulatory restrictions: Only certain types of gold (jewellery, specified coins) are eligible.

It is advisable to check with the lender for their specific valuation methodology and applicable deductions.