Which Bank will Give More Loan if you Pledge 10 Grams of Gold?
The amount of loan you can get by pledging 10 grams of gold depends mainly on two key factors:
Current gold price (valuation basis, usually 22K or 24K purity, minus making charges for jewellery)
Loan-to-Value (LTV) ratio allowed by the lender (RBI regulates this)
As of February 2026, gold prices have seen a significant rise, with 22K gold trading around ₹15,038 per gram.
Which lenders give the highest loan amount (highest LTV) for 10 grams?
| Lender Type | Typical LTV for ~₹1–2 lakh loan | Approx. Loan on 10g (₹1.42 lakh value) | Notes / Interest Rate Range |
|---|---|---|---|
| NBFCs like Muthoot, Manappuram, Rupeek | 80–85% (often highest) | ₹1,13,000 – ₹1,21,000 | Fastest disbursal, higher interest (10–24% p.a.) |
| Fintech / Digital (Rupeek, Faircent, etc.) | Up to 85% | ₹1,15,000 – ₹1,22,000 | Highest per gram rate often, quick online |
| Private Banks (HDFC, ICICI, Axis) | 75–80% | ₹1,06,000 – ₹1,14,000 | 9–18% p.a., good service |
| Public Sector Banks (SBI, Canara, Bank of Baroda) | 75% (strict) | ₹1,06,000 – ₹1,10,000 | Lowest interest (8.75–10.5% p.a.), slower process |
| Co-op / Small Finance Banks | 75–82% | ₹1,06,000 – ₹1,16,000 | Varies a lot by branch |
Summary for 10 grams pledge (approx.)
- Highest possible loan → ₹1,15,000 – ₹1,22,000 (85% LTV from NBFCs/digital lenders)
- Typical safe range → ₹1,06,000 – ₹1,15,000 (75–80% from banks)
- Interest → 8.75% (SBI lowest) to 12–24% p.a. (NBFCs higher but faster)
2. The Calculation (How to do it yourself)
Lenders use a specific formula to calculate your eligibility. For 10 grams of 22K gold:
Step A: Determine the Market Value
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Weight: 10 grams
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Current Rate (22K): ~₹15,038/gram
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Total Value: $10 \times 15,038 = ₹1,50,380$
Step B: Apply the LTV Ratio
The bank will not give you 100% of the value. They keep a “margin” for safety.
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For 75% LTV: $1,50,380 \times 0.75 = \mathbf{₹1,12,785}$
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For 85% LTV (Small loans): $1,50,380 \times 0.85 = \mathbf{₹1,27,823}$
Actual Payout: The bank will further deduct “Appraiser Charges” (usually ₹200–₹500) and “Processing Fees” from this amount.