Axis Bank Gold Loan Per Gram

Axis Bank gold loan per gram gives you an estimate of the amount of loan you can get against your gold jewellery. You will get loan on the basis of the purity and gold price of your jewelry adjusted for loan to value ratio.
As per the latest gold prices, Axis Bank offers a gold loan per gram of ₹ 2,744 to ₹ 3,354. Highest Axis Bank gold loan rate per gram today is ₹ 3,354 for 22 carat jewellery calculated at a maximum LTV of 75% and average gold loan prices of last 30 days in 2020 is ₹ 4,969 of 22 carat

MyLoanCare’ s Axis Bank Gold Loan Calculator gives you an estimate of the amount of gold loan you can avail basis the following factors.

• Purity and net weight of gold used in jewelry: The bank will use their in-house valuer to assess the purity and net weight of gold in your jewelry. Gold used in the jewelry should be of a purity of 18 to 24 carats. Axis Bank will also reduce the weight of gems and stones from the jewelry to calculate the net weight of jewelry. The valuer will give his findings in writing.
• Price of gold: Once the valuer estimates the purity and net weight of gold in your jewelry, Axis Bank will multiply it with the price of gold to calculate the value of gold. RBI has instructed banks to apply the past 30 days average price of 22 carat gold adjusted for purity of gold. So, if the gold is of 20 carat purity, Axis Bank will apply the 30 days average of 22 carat gold multiplied by a factor of 20/22 to adjust the value of gold.You can also check today's gold rate at MyLoanCare
• Loan to Value Ratio: Once the value of jewelry is calculated, Axis Bank will apply a LTV of up to 75% to calculate your jewel loan amount eligibility. If you are willing to take a loan amount lower than your maximum LTV, Axis Bank may offer you a lower interest rate.

The following table gives an approximate estimate of gold loan per gram Axis Bank will offer against gold jewelry of different purity levels at a maximum LTV of 75% and lower LTV of 65%.

Gold Purity	Gold rate per gram- average of past 30 days	Axis Bank best Gold Loan per gram	Axis Bank lowest Gold Loan per gram
22 carat	₹ 49,693	₹ 3,354	₹ 2,907
20 carat	₹ 45,175	₹ 3,354	₹ 2,643
18 carat	₹ 40,658	₹ 2,744	₹ 2,378

The above table shows the method by which Axis Bank will calculate your per gram gold loan for gold of varying purity.

• Gold loan per gram in Axis Bank offer for 22 carat jewelry will be between ₹ 2,907 to ₹ 3,354
• Axis Bank gold loan per gram offer for 20 carat jewelry will be between ₹ 2,643 to ₹ 3,354
• Gold loan per gram offer of Axis Bank for 18 carat jewelry will be between ₹ 2,378 ₹ 2,744

• Axis Bank accepts both hallmarked and non-hallmarked jewelry for getting a gold loan. However, you can get highest gold loan per gram for hallmark jewelry, as it reduces the chances of under-valuation by the valuer. Also, some banks charge a lower processing fees on hallmarked gold jewelry.
• Axis Bank adjusts the price of 22 carat gold for purity of gold. Hence, always try to borrow against higher purity jewelry as it will fetch you the highest amount for gold loan.
• Axis Bank will calculate the net weight of jewelry to calculate the amount of loan against gold you can get. Always, try to choose jewelry which has minimum gems and stones. Most of the banks will reduce the weight of gems and stones from total weight of jewelry. Axis Bank will rely on the report of his gold valuer to calculate the net weight. Higher the weight of gems and stones in jewelry, lower the net weight and value of jewelry which results in lower amount of jewel loan you can are eligible to get Further, Axis Bank will not accept diamond jewelry if the gold used is of less than 18 carat purity. Most of the diamond jewelry is made in 16 carat to 18 carat gold and hence, will result in very low gold loan per gram.
• Always try to get the maximum LTV on the value of gold. Axis Bank is allowed by RBI to charge a maximum LTV of up to 75% to calculate the amount of gold loan you are eligible for.

ILLUSTRATION: The loan amount eligibility is decided on the basis of purity of gold, LTV and weight of gold. Suppose Mr. A and his two friends Mr. B and Mr. C own different amounts of gold with varying purity. Mr. A has 50 gram of gold with a purity of 22 carat. Mr. B has 60 gram of gold with a purity of 20 carat and Mr. C has 70 grams of gold with a purity or 22 carat. They approach Axis Bank to avail a gold loan. The price applied to calculate their gold loan amount eligibility based on maximum LTV of 75% will vary by the purity of gold and hence, will result in varying gold loan eligibility.

Carats / Weight of gold	Gold Weight (in gm)	Purity of Gold (in carat)	Gold Loan Eligibility
Mr. A	50	22	₹ 2.12 Lakh
Mr. B	60	20	₹ 2.31 Lakh
Mr. C	70	18	₹ 2.43 Lakh

As noted in the illustration above, despite having the highest weight of gold, Axis Bank will offer the lowest gold loan rate of ₹ 2.12 Lakh due to lower purity of gold at 22 carat.

In the same illustration, Axis Bank will offer the highest gold loan amount to Mr. A at ₹ 2.43 Lakh, despite having the lowest weight of gold. Hence, clearly one can improve the gold loan amount eligibility from Axis Bank by opting to pledge a high purity gold jewelry.

Gold Loan EMI of Axis Bank is a fixed amount that you pay each month towards the repayment of your jewel loan. Axis Bank offer EMI scheme on gold loan. The following table is illustrative and is applicable only if the bank offers EMI scheme on gold loan. Lowest EMI offered by Axis Bank is ₹ 4,754 per lakh loan amount at lowest gold loan interest rate of 13.00%. Gold loan EMI of Axis Bank depends upon:

• Rate of interest: Higher the interest rate, higher will be the EMI. For a 24 months gold loan from Axis Bank at interest rate of 13.00% per annum, EMI will be ₹ 4,754 per ₹ 1 Lakh loan amount. At interest rate of 13.00% for the same loan, the EMI will be ₹ 4,754
• Loan tenure: Longer the loan tenure, lesser your monthly EMI. At 13.00% per annum, the EMI would range from ₹ 17,304 to ₹ 4,754 for loan tenure ranging from 6 months to 24 months

Gold Loan EMI for ₹ 1 Lakh loan amount at lowest 13.00% interest rate offered by Axis Bank for different tenures

	6 months	12 months	24 months
Axis Bank EMI for a loan amount Rs. 1 lakh at 13.00%	17,304	8,932	4,754
Total amount you pay back to the bank including principal and interest	1.04 Lakh	1.07 Lakh	1.14 Lakh
Interest you have to pay over loan tenure	3,824	7,184	14,096

As you can see in the above table that longer the loan tenure, lower is the EMI you pay on gold loan. However, your total interest outgo is significantly higher in case of long tenure loan. In the above example, if you take a ₹ 1 Lakh loan for a period of 24 months, the lowest EMI you will pay of ₹ 4,754. However, you pay an interest of ₹ 14,096 on a ₹ 1 Lakh loan.

In comparison, if you take a ₹ 1 Lakh loan from Axis Bank at the lowest interest rate for a period of 6 months, your monthly EMI will be as high as ₹ 17,304 and pay an interest of only ₹ 3,824 which is less than what you paid in a 24 months loan. Hence, you must choose your loan tenure wisely as longer tenure leads to high interest cost.

✅What is the age limit required for gold loan from Axis Bank?

The minimum age should be 18 years and maximum age should be up to 75 years.

✅What is the maximum loan amount that I can avail on gold loan from Axis Bank?

The maximum loan that you can avail is up to 75% of the market value of the gold depending on the quality of the gold.

✅What is the loan tenure of Axis Bank gold loan?

Axis Bank gives gold loan to the applicants for a maximum tenure of 24 months. So, the borrower should be sure about the repayment capacity of the loan.

✅What kind of gold items are accepted and rejected as a security?

Gold ornaments with carats in the range of 18 to 24 and weight of more than 50 grams are accepted by Axis Bank. Axis Bank does not allow customer to borrow against gold bars, exchange traded funds and ladies mangal sutra.

✅How much processing fee is applicable in Axis Bank gold loan?

Axis Bank charges a processing fee of 1% plus GST on gold loan.