Search Suggestions
- Gold Loan
- Money Transfer
- Mutual Funds

Why Gold is Cheaper in Kerala: The Key Reasons Explained
Gold holds a significant place in Indian culture, being used in almost every aspect of life. However, a notable issue arises when considering the bigger picture: gold prices vary from city to city. This price discrepancy can be attributed to several factors, with the primary reason being the balance between demand and supply.
Table of Content
In India, Kerala stands out as the state with the highest per capita gold expenditure. The National Sample Survey Data of 2021 reveals that the monthly per person spending on gold in Kerala amounts to Rs 208.55 in rural areas and Rs 189.95 in urban areas, indicating a b demand for the precious metal. However, Kerala also boasts a substantial gold supply, with approximately 15,000 gold traders operating within the state. This abundant supply helps to counterbalance the effect of high demand on gold prices in Kerala to some extent, preventing prices from skyrocketing despite the significant consumer appetite for gold.
Gold Loan in Kerala
If you are wondering which state has the lowest gold rate, then it is Kerala. One of their primary services is gold loans, which have gained popularity in recent years. If you're seeking to enhance your financial opportunities, a gold loan in Kerala might be an ideal solution. The loan amount is based on the value of the gold provided by the borrower. Gold loans are deemed a safe and secure option, as the gold serves as a guarantee for the loan.
Get the Best Gold Loan Today
Key Reasons that Impact Gold Rates
Kerala, a state in southern India, is known for its affection for gold. Interestingly, despite the high demand for the precious metal, gold prices in Kerala per gram are often lower compared to other parts of the country. Below listed are the key reasons behind this:
High Supply: Kerala is home to a large number of gold traders and jewelers, estimated to be around 15,000. This abundant supply of gold in the state helps to keep prices in check, as competition among sellers prevents excessive price hikes.
Direct Imports: Many gold traders in Kerala directly import gold from international markets, bypassing middlemen. This direct sourcing allows them to secure gold at competitive prices and pass on the benefits to consumers.
Lower Tax Rates: Kerala has lower tax rates on gold compared to some other Indian states. This reduced tax burden contributes to making gold more affordable for buyers in the state. Don't forget to check today's gold loan rate.
Efficient Supply Chain: The gold trade in Kerala benefits from a well-established and efficient supply chain. The presence of numerous gold refineries and skilled artisans ensures a steady flow of gold products, reducing bottlenecks and keeping prices stable.
Price Regulation: The All Kerala Gold and Silver Merchants Association plays a crucial role in setting daily gold prices in the state. This regulated pricing mechanism helps prevent drastic fluctuations and maintains a level of stability in the market.
Get the Best Gold Loan Today
Interest Rates and Demand: Due to the cheapest gold in India, the demand for gold loans can fluctuate with gold prices. If gold is cheap, people might prefer to buy and hold gold rather than borrow against it.
Tourism Impact: Kerala is a popular tourist destination, attracting visitors from across the globe. The influx of tourists, especially during peak seasons, contributes to the gold trade in the state, as many tourists purchase gold as souvenirs or gifts.
Suggested Read: Top Reasons Why Gold Prices Are Increasing In India
Gold prices in India vary from state to state due to several factors. One significant reason is the difference in local taxes and levies, which results in varying prices for both 22 Carat and 24 Karat gold rates in Kerala or other cities. Moreover, gold prices are determined by the local bullion associations, contributing to the price disparities. These associations adjust gold prices twice a day, usually reflecting the fluctuations in international markets. Consequently, consumers in India may encounter different gold prices depending on their location within the country.
- Avail gold loan
- Calculate Gold Loan
- Check Gold rate today
- Gold Loan Eligibility
- Interest Rate
- Gold Loan Scheme
- Custom Offers
CATEGORIES
OUR SERVICES
-
Credit Score
-
Gold Loan
-
Personal Loan
-
Cibil Score
-
Vehicle Loan
-
Small Business Loan
-
Money Transfer
-
Insurance
-
Mutual Funds
-
SME Loan
-
Corporate Loan
-
NCD
-
PAN Card
-
NPS
-
Custom Offers
-
Digital & Cashless
-
Milligram Rewards
-
Bank Mapping
-
Housing Finance
-
#Big Business Loan
-
#Gold Loan Mela
-
#Kholiye Khushiyon Ki Tijori
-
#Gold Loan At Home
-
#Sunherisoch
RECENT POSTS

1 Pavan Gold in Grams: Meaning and How It Is Calculated
Know More
NACH vs. ECS Explained: Full Forms, How They Work, and Their Key Differences
Know More
MCLR Rate vs. Repo Rate Explained: Which Is Better for a Home Loan?
Know More
Effective Annual Rate (EAR) vs. Nominal Rate: Meaning and Key Differences
Know More
Calculate Compound Interest in Seconds (2025)
Know More
Annualized Return Formula Every Investor Needs To Know
Know More
Simple Interest: Meaning, Formula & Use in Personal and Gold Loans
Know More
Difference Between Gold ETFs and Gold Bonds
Know More
What is a Post-Dated Cheque? Meaning, Validity & Loan Uses
Know More
Return on Capital Employed (ROCE): Meaning and Calculation
Know MoreFIN SHORTS

Top 5 Reasons to Monitor Gold Rate Daily
Know More
4 Impact of Repo Rate Cut on Personal Loan Interest Rates
Know More
Top 5 Best Performing Mutual Funds in 2025
Know More
5 Factors that affect gold loan processing time
Know More
Relation Between Personal Loan and Your CIBIL Score
Know More
Step-by-Step Way to Get Your First CIBIL Score
Know More
What Does A Revolving Personal Loan Mean?
Know More
When does CIBIL Score Be an Update Date Every Month?
Know More
Which Industries Qualify For SME Loan Schemes
Know More
Do Gold Loan Offer Any Tax Exemption?
Know More
After Paying All Debts How Long Does Cibil Take To Update The Score?
Know More
What Is The Reappraisal of A Gold Loan?
Know More- South +91 99469 01212
- North 1800 313 1212