What is the range of loan amounts available under low-interest gold loans?

Low-interest gold loans are secured loans where borrowers pledge their gold jewellery as collateral to obtain funds. They are generally available in loan amounts ranging from ₹10,000 to ₹50 lakhs. There are several factors that typically govern this; they include:

• Quantity and Quality of Gold: The quantity and quality of gold jewellery pledged as collateral by the borrower. Typically, the minimum gold required is around 10-20 grams.
• Market Value of Gold: The prevailing market rates of gold determine the market value of gold jewellery, impacting the permissible loan amount.
• Loan-to-Value (LTV) Ratio: The LTV ratio policies of the lender decide the percentage of gold value that can be availed as the loan amount. Most lenders provide up to 75% of gold value.
• Eligibility Criteria: Financial institutions set eligibility criteria based on an applicant's income, creditworthiness, age, residence location, and other factors.
• Maximum Loan Caps: Different lenders set maximum loan amount caps based on their internal risk management policies. This limit can range from ₹10 lakhs to ₹50 lakhs or more.

Additionally, some banks and Non-banking Financial Companies (NBFCs) may offer customized low-interest gold loans up to a few crores for niche high-net-worth individuals.