How to Calculate Your Gold Loan Eligibility Amount: A Step-by-Step Guide

Summary: You can calculate your gold loan eligibility by entering your gold's weight, type, and purity into an online gold loan calculator or by manually applying the market gold price and LTV ratio (up to 75%). Alternatively, visit a Manappuram branch for an in-person evaluation. These methods help you estimate how much you can borrow against your gold, ensuring faster loan processing and better financial planning.

Gold loans are a popular way of securing funds in times of need by using gold assets, like gold jewellery, coins, or bars, as collateral. Many people wonder how much funding they can actually borrow against their precious gold ornaments. This question highlights the importance of knowing and calculating the gold loan eligibility amount. Today, let’s explore how you can unlock the true value of your gold assets.

Steps to Calculate Your Gold Loan Eligibility Amount

There are three easy ways to calculate your gold loan eligibility amount. You can use our Gold Loan Calculator, which is quick and simple, or visit our nearest branch.

Using Our Gold Loan Calculator

Manappuram Finance Limited offers a Gold Loan Calculator, which is available on our website. This intuitive calculator helps you calculate the loan amount for Online Gold Loans as well as for regular gold loans, providing you with an estimate of how much you can get against your pledged gold.

The result provided by the gold loan calculator is based on your gold’s weight and type. Usually, lenders seek gold assets with a minimum of 18-karat purity.

To calculate your gold loan eligibility using our gold loan calculator, you need to follow these steps:

• Entering Your Details:

  The first step to learning about the loan amount you are eligible to receive is providing the necessary information. The online gold loan calculator asks for details such as your name, contact number, and email address. Fill in the details in their designated boxes for the process to continue smoothly.

• Selecting Your State:

  Once you have entered your basic details, select the state in which you reside. Manappuram Finance Limited has more than 3,500 branches spread across 28 states of the country. This ensures that you are able to secure a gold loan from anywhere in India.

• Select Gold Type:

  Enter the type of gold you are planning to provide as collateral. You can choose from a variety of forms. This allows you to pledge gold assets in solid gold, gold chains, and gold assets with stone.

• Enter the Gold Weight:

  Fill in the weight of the gold you want to pledge. Note that if your gold is studded with stones or other metals, the loan amount will only be given for the gold content present in the item.

• Enter the Loan Amount:

  Once you have updated all the required information regarding yourself and your gold assets, enter the loan amount you wish to borrow and click on “Calculate”. Upon completion of these steps, you will have your gold loan eligibility details right at the top of the page.

Note: The amount displayed by the calculator is as per the permitted LTV ratio and the current price of gold in the market. 

Calculating Gold Loan Eligibility Amount Manually

Suppose you have 50 grams of 22-karat gold and the current price of gold is ₹4,500 per gram.

Here is the example of how to calculate the gold loan eligibility amount using the traditional method:

= 50 grams × Today’s LTV Rate (Ex. 4500) = ₹2,25,000

Visiting the Lender’s Branch

Another simple way to determine your loan amount eligibility is by visiting a nearby Manappuram Finance Limited branch. Thanks to our extensive branch network, you will be able to find multiple branches in your state.

Start by:

1. Locating our nearest branch.
2. Preparing the Necessary Documents: Prepare your identification and residential proof. You can carry one of the following documents for that purpose:
   • Aadhaar Card
   • Voter ID card
   • Driving licence
   • PAN Card
   • Passport

   Address Proof:

   • Electricity Bill
   • Telephone Bill
   • Ration Card
   • Rental Agreement
   • Property Document

   If you are applying for a loan amount of ₹20,000 or more, you may also need to submit the first page of your bank passbook.

3. Visiting the Branch: Bring your gold ornaments (between 18-karat to 24-karat range) and the mentioned documents to the nearest branch for verification.
4. Gold Valuation: Our trained officials will evaluate the purity and weight of your gold. The valuation will be calculated minus the stones and other metals.
5. Loan Amount Determination: Based on the gold valuation, you will be provided with a gold loan amount. As per the RBI guidelines, you can be offered up to 75% of your pledged gold.
6. Application Process: Complete the loan application form provided by the branch. Fill out the form and attach the necessary documents.
7. Approval and Disbursement: Once your application is reviewed and everything is in place, your loan will be approved. At the end of the process, the loan amount will be transferred to your bank account.

Conclusion

Calculating your gold loan eligibility amount is simpler than you think. By following one of the above ways, you can estimate how much money you might receive by using your gold assets as collateral.

Using online tools like Manappuram Finance Limited’s Gold Loan Calculator can make this process even easier, allowing you to get the funds you need when you need them.

To ensure a smooth application process, always remember to check the lender's gold loan criteria and prepare the necessary documents.

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