Gold loans are different from other loans. The loan amount depends on the weight and purity of your gold, not just your income. Most lenders offer 70 to 90% of the gold value (called LTV or loan-to-value). Processing is quick, often same-day, because the gold itself is the collateral.
Eligible loan amount
₹10,83,901
Available for EMI
₹22,500/mo
FOIR used
45%
45% of income available for EMI payments
Indicative estimate based on 45% FOIR (Fixed Obligation to Income Ratio). Final approval depends on credit score, employment type, existing obligations, and lender policy.
The lender weighs your gold, checks purity (usually 22 carat for ornaments), and applies the RBI-mandated LTV ratio (up to 90% for NBFCs). A 10-gram 22-carat gold chain at current market price of 6,000 per gram could get you a loan of about 48,000 to 54,000.
For smaller amounts (under 2 lakh), most NBFCs and banks do not require income proof. For larger amounts, some lenders may ask for basic income documentation. The gold itself is the primary security.
If you default, the lender can auction your gold after giving notice. It is important to borrow only what you can repay. Gold loan interest rates are typically 9 to 24%, and most have short tenures (3 to 36 months).
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