What is Gold Rate?
The prices of gold fluctuate frequently, so it’s important to ensure that you know the current rates before selling. Investing in gold has been a long-standing tradition in India due to its stability and rarity. As with all markets though, there are many factors affecting both domestic and international Gold rates which cause some wide price fluctuations over time. The market rate for gold can change on any given day depending on economic conditions, this is why it’s imperative for customers who intend to take a gold loan today to get accurate information about how much they should be receiving per gram beforehand. This rate per gram is known as the gold rate.
Understand Per Gram Rate for Gold Loan
Gold loans can be a good option for those who are in need of quick cash. The amount the customer receives as a loan on gold is largely based on the weight and purity of the Gold they have. As per RBI guidelines, we are entitled to furnish 75% of the collateral’s perceived value to give you as a loan. So, assuming you have 1 Gram of 18K gold valuing Rs. 3000, the loan to value or per gram rate for the gold loan can be as high as Rs. 2250/- in this case.
Why Are Gold Rates Different In Various Cities Of India?
Gold prices vary across different states & cities. This difference in price is due to factors such as demand for gold, transportation costs (including taxes), and associations among others. For example, the 22-carat gold rate on 31st July 2020 in Maharashtra was Rs 4973/gram whereas Delhi had only Rs 4 921 per gram – this means there is an 11% cost reduction if one chooses Mumbai over New Delhi.
Also Read: Points To Understand About Gold Loans Rate & Interest Rates
How Is Gold Rate Calculated In India?
In every city in India, a committee of top gold traders and jewellers meets to determine the price for the day. The members are chosen based on their knowledge about tariffs, duties, etc., so they know exactly how much it costs when people buy or sell gold locally as well as internationally. Try Muthoot Fincorp gold loan calculator.
How Gold Price affects your Gold Loan Application
Gold prices are always fluctuating, so it is important to know the current rates when taking a Gold Loan. When you walk into your nearest Muthoot FinCorp branch, you are ensured that you always get the best value and loan against your gold. We weigh your gold accurately so that you have the most profitable experience. Each branch of Muthoot FinCorp understands the value and emotion attached to your gold. Hence, we take utmost care to safe keep your valuables until it is time for you to take them home.