Find out how today's gold rate affects your eligibility for a gold loan and how to estimate the amount you can borrow against your gold.
If you own gold and are considering a loan against it, the first number you need to know is the gold rate. The gold rate directly determines how much loan you are eligible for—and understanding this connection helps you plan your borrowing with confidence.
Understanding the importance of the gold rate for your loan is crucial.
When you apply for a gold loan, the lender does not use the gold price you see on a financial app or news channel. Instead, lenders use the lower of the previous day's closing price or the 30-day average price published by the India Bullion and Jewellers Association (IBJA) or a SEBI-regulated commodity exchange. This approach ensures your loan amount is calculated on a stable, fair basis — not on a price that may have spiked temporarily.
Today gold rate in Delhi plays a direct role in determining how much you can borrow against your gold. When gold prices are higher, your jewelry, ornament, or coin is valued more—and your eligible loan amount increases accordingly. Checking the current rate before you apply gives you a realistic estimate of what to expect.
How your loan amount is calculated
Once your gold is assessed for weight and purity, the lender applies the RBI-prescribed loan-to-value (LTV) ratio to arrive at your eligible loan amount. The LTV is currently capped at 85% for gold loans — meaning if your gold is valued at ₹2 lakh, you may be eligible for a loan of up to ₹1.70 lakh.
Purity matters too. Gold accepted for loans is typically between 18 and 22 karats for jewelry and ornaments and up to 24 karats for gold coins. Higher purity gold fetches a better per-gram valuation, which translates into a higher loan amount. Jewelry with heavy stonework or enamel is valued only on its actual gold content—so keep this in mind when estimating your eligibility.
Gold rates vary by city—here is what you should know.
Gold rates in India are not uniform across the country. While the base rate is set by IBJA, local factors such as state taxes, transportation costs, and jeweler association pricing can cause rates to differ from city to city. The gold rate in Delhi may differ slightly from rates in southern India — for instance, today’s gold rate in Kerala tends to reflect different local demand patterns and tax structures, as Kerala is one of India's largest gold-consuming states.
If you are based in Delhi and planning to apply for a gold loan, tracking the gold rate in Delhi on the day of application gives you the most accurate estimate.
To estimate your loan amount, use a gold loan calculator.
Rather than calculating manually, use a gold loan calculator You enter the weight of your gold in grams and its purity in karats, and the calculator uses the IBJA-referenced rate to estimate your eligible loan amount instantly. While it provides only an estimated loan amount, and the final value is determined after the actual gold assessment, it helps you understand your potential borrowing capacity.
Lenders such as Bajaj Finance offer this tool on their website and app, giving you a reliable estimate before you visit a branch. With loan amounts available from ₹5,000 to ₹2 crore and low interest rates, running the numbers in advance helps you borrow only what you need.
What to do before you apply
Check the gold rate in your city on the day you plan to apply. Use a gold loan calculator to estimate your eligible amount. Carry one valid KYC document to the branch. That is all the preparation you need.
Knowing your gold's value puts you in control of your borrowing decision — before you pledge a single gram.
Note to readers: This article is part of Mint’s paid consumer connect initiative. Mint assumes no editorial involvement or responsibility for errors, omissions, or content accuracy.
