Gold loans

How much gold loan can you get per gram? And how banks decide

Per gram, your loan is gold weight x purity x today's rate x LTV. Here's what a bank actually pays per gram of 22K and 24K today, the worked math, and the four things that move the number.

RatesToday desk

Editorial

Updated 30 Jul 2026 7 min read

In short

A gold loan is paid on the metal, per gram — not on what the piece cost you. At today's rates (30 Jul 2026), a bank advances roughly ₹9,923–₹11,246 per gram of 22K and ₹10,825–₹12,268 per gram of 24K — i.e. 75–85% of the gram's value, the share set by the RBI loan-to-value (LTV) cap. Stones and making charges add nothing.

You don't really want to know "the gold loan rate." You want to know one number: for this chain in my hand, what will the bank actually give me? And the honest answer is refreshingly simple — it's decided per gram, by a formula you can run yourself before you ever leave the house.

Forget the showroom price. When you pledge jewellery, the lender ignores the design, the gemstones and the making charges you once grumbled about. It values one thing — the gold metal, gram by gram — and then lends a fixed share of that. Nail those two ideas and you'll know your loan to the rupee.

What a bank pays per gram today

Start with the metal value of a single gram, then apply the LTV share the lender is allowed to advance. At today's rates (30 Jul 2026):

Loan value per gram, today

Metal value × LTV — before any interest or fees

Purity	Metal value / g	Loan @ 75%	Loan @ 85%
22K (916)	₹13,230	₹9,923	₹11,246
24K (999)	₹14,433	₹10,825	₹12,268

The 85% column is the small-loan tier; larger loans sit at the 75% ceiling. Each lender sets its own figure within the RBI cap — see live per-gram values by bank.

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Stones and making charges don't count. An ornate, stone-set piece is worth far less as collateral than its showroom price — the bank pays only for the gold weight at its purity.

The per-gram formula

Gold weight × purity rate × LTV

Every gold loan, at every bank and NBFC, comes down to the same line:

Loan = grams × per-gram rate for that purity × LTV. Nothing else moves the principal.

So for 1 gram of 22K at ₹13,230/g, a 75% LTV loan is about ₹9,923, stretching to ₹11,246 on the smaller-loan tier. Multiply by your weight and you have your headroom — no counter surprise required.

A worked example: 20g of family gold

Say you pledge 20g of 22K jewellery. At ₹13,230/g (30 Jul 2026) the gold metal is worth about ₹2,64,600, so:

At 75% LTV: a loan of roughly ₹1,98,450
At 85% (smaller-loan tier): up to about ₹2,24,910

Anyone offering well under ₹1,98,450 is valuing your gold low; anyone offering well over ₹2,24,910 is likely an NBFC charging for the higher advance. Either way, you now know the band. Compare live gold-loan rates across banks.

Why "per gram" is the only fair way to compare

Two lenders can quote the same headline interest rate yet hand over very different amounts for the same chain — because they value the gram differently. Reducing every offer to rupees per gram advanced strips out the noise and shows you who's actually lending the most against your gold. It's the single comparison that protects you.

What moves your per-gram number

Purity. 24K pays more per gram than 22K simply because the gram is worth more — but most household gold is 22K.
LTV tier. Smaller loans can reach ~85%; larger loans are capped near 75% under RBI rules.
Bank vs NBFC. Banks price the interest lower; gold-loan NBFCs often advance a higher per-gram amount, faster — you pay for that in the rate.
The day's rate. Per-gram value tracks the live gold price, so the same chain is worth a little more or less week to week.

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Don't take the maximum per gram. Borrowing to the 85% ceiling leaves no cushion — if gold dips, the lender can ask for a top-up. Leaving a little headroom keeps you safe and often earns a better rate.

A gold loan isn't a number the bank reveals at the counter. It's grams in your hand, today's rate on the screen, and an LTV you can look up. Walk in already knowing your per-gram figure, and a stressful negotiation becomes a simple, confident transaction.

See per-gram loan value by bankLive per-gram gold-loan amounts across banks and NBFCs.

Frequently asked

A lender advances 75-85% of the gram's metal value, set by the RBI loan-to-value cap. At today's 22K rate that is roughly the per-gram rate times 0.75 to 0.85 - smaller loans reach the higher share, larger loans sit nearer 75%. Stones and making charges are not counted.

Take today's 22K rate per gram and multiply by the LTV: about 75% for a standard loan and up to 85% on the smaller-loan tier. So one gram of 22K gets you roughly three-quarters to four-fifths of its metal value as a loan, before interest.

Both, but most household gold is 22K jewellery, so that is what is usually pledged. 24K coins and bars are worth more per gram, so they advance more per gram - though un-hallmarked items and coins above a small limit can face restrictions. The metal value per gram still drives the loan.

Because the lender keeps a safety margin. Gold prices move, so the RBI caps how much can be lent against the metal - typically 75%, up to 85% for smaller loans. That buffer protects the lender, and you, if the price dips while the loan is outstanding.

NBFCs often advance a higher amount per gram and approve faster, but charge a higher interest rate for it. Banks usually lend a little less per gram at a lower rate. Compare offers as rupees advanced per gram, not just the headline rate.

The RatesToday editorial desk

We track Indian commodity and fuel prices daily and write these guides in plain language. Spotted an error? Tell us.

Sources & notes

RBI gold-loan loan-to-value norms (tiered ceilings).
RatesToday daily India gold benchmarks (22K/24K per gram).
Lender-published gold-loan rate cards (banks and NBFCs).

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