MoneyLens / Gold loans
Your gold loan, explained.
Gold loan · Narmada Gold Loan · Narmada Bank Ltd · ••••6624
Illustrative
Gold loan · Bank
Pledge card10 Jun
Owed now
₹2,00,000
at 9.50% a year
Gold value
₹3,13,600
32 g net · 22 ct
Loan-to-value
63.8%
limit 85% for this size
Due
10 Jun 2027
in 232 days
75% of the limit usedthe gold price can fall about 23%
A gold loan of ₹2,00,000 from Narmada Bank Ltd at 9.50% a year, with interest paid monthly and the principal at the end, against gold valued at ₹3,13,600 (63.8% 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
10%
₹9,500
₹2,00,000
32 g
After a 10% fall
Withinthe limit is ₹2,32,560
The price can fall
23%before what's owed passes the limit
Assumptions & limits. 32 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. Above the limit, the lender can ask you to repay part of the loan or pledge more gold.