Gold Loan Weight Deduction Calculator

💡 What Does This Calculator Do?

The Gold Loan Ornament Weight Deduction Calculator determines your net gold weight after deducting stones, beads, and enamel impurities from gold jewellery. It calculates the fine 24K equivalent weight, evaluates real-time market collateral value, and estimates your maximum loan eligibility under RBI's 75% Loan-to-Value (LTV) cap.

📋 How to Use It

1. 1
   Gross & Stone Weight: Enter total jewellery weight and stone/bead weight in grams.
2. 2
   Gold Purity: Select your ornament hallmark purity (22K, 20K, or 18K).
3. 3
   Market Rate & LTV: Enter the current 24K gold rate per gram and lender LTV percentage (up to 75%).

🧬 The Logic Explained Simply

• The Concept: Banks and NBFCs only lend money against net gold metal weight—stones and enamel add weight but have zero gold collateral value.
• The Formula: Net Weight = Gross Weight - Stone Weight; Fine Weight = Net Weight × (Karat / 24); Loan Amount = Net Weight × Purity Rate × LTV %.

💡 Real-World Calculation Breakdown

Imagine pledging a 50g gold necklace with 5g of decorative stones at a 24K gold rate of ₹7,500/g for 22K (91.67%) gold:

1. 1
   Net Gold Weight = 50g - 5g = 45g net gold.
2. 2
   Effective 22K Gold Rate = ₹7,500 × 91.67% = ₹6,875 per gram.
3. 3
   Total Collateral Valuation = 45g × ₹6,875 = ₹3,09,375.
4. 4
   Max Loan at 75% LTV Cap = ₹3,09,375 × 75% = ₹2,32,031.