MoneyLens / Gold loans
Your gold loan, explained.
Gold loan · Kaveri Gold Bullet 12 · Kaveri Gold Finance Ltd · ••••3187
Illustrative
Gold loan · NBFC
Pledge card15 Apr
Owed now
₹2,62,369
at 18% a year
Gold value
₹2,85,000
30 g net · 22 ct
Loan-to-value
99.4%
limit 85% for this size
Due
15 Apr 2027
in 176 days
100% of the limit used₹40,950 above the limit
A gold loan of ₹2,40,000 from Kaveri Gold Finance Ltd at 18% a year, repaid in one go at the end, against gold valued at ₹2,85,000 (99.4% of its value). Repaying in full gets the gold back; if it isn't repaid, the lender can auction the gold after giving notice.
Myra's most important observations
Prefilled from your loan · edit freely
If the gold price falls
Prefilled from Pledge card p.1, Valuation · Pledge card p.1, Ornaments · Pledge card p.1
10%
₹9,500
₹2,83,000
30 g
After a 10% fall
₹64,975above the limit: to repay, or cover with more gold
The price can fall
Short now₹40,750 above the limit today
Assumptions & limits. 30 g of 22-carat gold, valued at 22 carat at the price a gram you set (lenders use the lower of the 30-day average and the previous day's price, so their figure can differ). RBI's limit for a loan this size is 85% of the gold's value, kept throughout the loan; for a bullet loan the interest due at the end counts, so it's included in what's owed. Above the limit, the lender can ask you to repay part of the loan or pledge more gold.