India, Oct. 9 -- Understanding how purity, net weight, applicable gold rates and LTV together determine your gold's assessed value and eligible loan amount.

When you check the gold price in India, you get a number that tells you what your gold jewellery, ornaments or coins might sell for. But that number is not what decides your gold loan amount. A lender looks at your gold differently, and knowing this before you apply can save you from a big surprise later.

Even if you check the gold price in Odisha as a reference, the retail price of jewellery can also include making charges, jeweller margins and other costs. These do not form part of the gold value considered for a gold loan. Instead, the lender assesses the eligible gold content in...