Gold Loan Per Gram: How Much You Really Get and What It Means for Your Finances

When you walk into a jewelry shop or bank asking for a gold loan per gram, a secured loan where you pledge your gold jewelry or coins as collateral to get instant cash. Also known as gold collateral loan, it’s one of the fastest ways to get money in India without a credit check—so long as you have gold to pledge. But here’s the thing: the amount you get isn’t just based on the weight of your gold. It’s tied to the current market rate, the lender’s loan-to-value ratio, and even the purity of your gold. Most lenders give you 70% to 80% of the gold’s market value, not 100%. So if your 10-gram gold chain is worth ₹50,000 today, you might only get ₹35,000 to ₹40,000 in cash.

The gold rate, the daily price of gold per gram set by the market and adjusted by local jewelers and banks changes every day. That means the money you get today might be less tomorrow if gold prices drop. Some lenders lock in the rate at the time of application, others revalue it monthly. And don’t assume all gold is treated the same—22-karat gold gets a better rate than 18-karat. Lenders also check for hallmarks and may deduct for stones or non-gold parts. If your gold isn’t clean or has damage, you could lose out on value.

And yes, this affects your credit score, a numerical reflection of your repayment history, used by banks to assess risk. Also known as CIBIL score, it can go up if you repay your gold loan on time—especially if the lender reports to credit bureaus. But miss a payment, and your score takes a hit, just like any other loan. Many people think gold loans don’t impact credit because they’re secured, but that’s a myth. If your lender is RBI-regulated (like SBI, HDFC, or Manappuram), your repayment history is tracked. If it’s a small local jeweler, it might not be. Ask before you sign.

There’s no one-size-fits-all answer to how much you get per gram. In 2024, you could get anywhere from ₹4,500 to ₹6,200 per gram, depending on gold prices and lender terms. But what matters more is what you’re using the money for. Are you paying off high-interest debt? Funding a medical emergency? Or just covering monthly expenses? The smarter your use, the less the loan hurts in the long run.

Some people use gold loans as a bridge while waiting for a salary or selling property. Others treat it like a quick fix—and end up stuck in a cycle of renewals. The best approach? Know your gold’s real value, compare lenders, read the fine print on interest rates (they can go as high as 14% annually), and never borrow more than you can repay in 6 to 12 months. It’s not magic money. It’s collateral with consequences.