What do karats mean?
Karat measures gold purity as a number out of 24 parts. 24 karat gold has 24 parts of gold, so each karat equals 1/24th of the total, or about 4.17% gold.
The remaining parts are other metals, such as copper or silver, which make the gold harder. The table shows the common karats.
| Karat | Parts of gold | Gold content | BIS mark |
|---|
| 24 karat | 24 of 24 | 99.9% | 999 |
| 22 karat | 22 of 24 | 91.6% | 916 |
| 18 karat | 18 of 24 | 75% | 750 |
A lower karat holds less gold and more alloy, so it is harder and costs less per gram. Choose the karat that balances purity, durability and budget for how you will use the piece. Jewellery below 18 karat, such as 14K or 10K, holds less than 60% gold.
What is the difference between 18K and 22K gold?
The main difference between 18K and 22K gold is gold content. 22K holds more gold, and 18K is harder. The table shows the trade-off.
| Feature | 18K gold | 22K gold |
|---|
| Gold content | 75% | 91.6% |
| Other metals | 25% | 8.4% |
| BIS mark | 750 | 916 |
| Hardness | Harder, so it holds stones and daily wear better | Softer, so it scratches and bends more easily |
| Price per gram | Lower | Higher |
| Accepted for Bajaj Finance Gold Loan | Yes, as jewellery or ornaments | Yes, as jewellery or ornaments |
Last updated: October 2026
The lower gold content makes 18K pieces cost less per gram, and it gives them a lower resale and loan value per gram than 22K pieces of the same weight. The alloy also changes the colour and finish. Read the 22K vs 24K gold comparison for the next purity step.
Since hallmarked gold has a verified purity, check your gold loan eligibility today.
How to check gold carat?
Check the hallmark first. Hallmarked gold jewellery in India carries three marks, and all gold jewellery must carry the Hallmark Unique Identification (HUID) code from 1 April 2023.
- The BIS logo.
- The purity mark and the karat, such as 18K750, 22K916 or 24K999. The number is purity in parts per thousand, so 750 means 75% pure gold.
- The six-digit HUID code.
Verify the HUID with the BIS Care app. Then check the invoice or certificate, which states the karat and the net gold weight. For an exact reading, visit a BIS-recognised hallmarking centre or a gold loan branch. They use an X-ray fluorescence (XRF) scan, which reads purity without damaging the piece.
A magnet test cannot confirm carat. Gold is not magnetic, but many non-gold metals are not magnetic either, so passing the test proves nothing. A piece without a hallmark has no verified purity.
Can I get a gold loan against 18 carat gold in Hyderabad?
Yes. Bajaj Finance accepts 18-22 karat gold jewellery and ornaments, and 24 karat gold coins, as collateral for a gold loan. Your 18 carat jewellery falls in this range.
The lender values gold at the lower of two prices: the previous day's closing price or the 30-day average closing price for its purity. The India Bullion and Jewellers Association (IBJA) or a commodity exchange regulated by the Securities and Exchange Board of India (SEBI) publishes both. A fall in the rate lowers your valuation at once, while a rise lifts it more slowly.
LTV is the maximum share of your gold's value that the lender gives as a loan. The Reserve Bank of India (RBI) caps it by loan amount.
| Loan amount | Maximum LTV |
|---|
| Up to Rs. 2.5 lakh | 85% |
| More than Rs. 2.5 lakh to Rs. 5 lakh | 80% |
| More than Rs. 5 lakh to Rs. 2 crore | 75% |
Worked example. Ravi, 36, is a salaried professional in Hyderabad. His 18 carat jewellery has an eligible value of Rs. 2,00,000 after valuation. At 85% LTV, his maximum loan is Rs. 2,00,000 x 85% = Rs. 1,70,000. Branch valuation, credit assessment and the lower-of-two-prices rule decide the final amount, so this example is not an offer.
Compare before you pledge. A personal loan from a bank or a credit card Equated Monthly Instalment (EMI) conversion are other ways to raise funds. Both are unsecured, so you pledge no gold.
Each lender sets its own interest and eligibility terms, so compare the total repayment for your amount and tenure.
Regulatory Context: The RBI issued the Reserve Bank of India (Lending Against Gold and Silver Collateral) Directions, 2025 on 6 June 2025. The Directions took effect on 1 April 2026 and cover LTV limits, valuation and collateral protection. Bajaj Finance applies them to every Bajaj Finance Gold Loan.
Bajaj Finance Gold Loan offers amounts from Rs. 5,000 to Rs. 2 crore, with interest from 9.50% p.a. and a tenure of 1 day to 12 months. You must be between 21 and 80 years old, and be a salaried or self-employed individual, or a pensioner.
RBI limits apply to what you pledge. Total ornament weight across all loans cannot exceed 1 kilogram, total coin weight cannot exceed 50 grams, and total loan exposure cannot exceed Rs. 2 crore. The LTV limit applies through the tenure, and bullet repayment loans count interest due at maturity.
Plan your repayment with the gold loan calculator. Check all the gold loan interest rate and charges before applying to make an informed decisions.
How do I apply for a gold loan in Hyderabad online?
You apply online in five steps, and then visit your chosen branch with your gold.
- Click "APPLY NOW" on the page.
- Enter your 10-digit mobile number and click "Get OTP" to receive a one-time password (OTP).
- Submit the OTP to verify your identity.
- Fill in your personal details and select the nearest gold loan branch.
- Download your in-principle loan eligibility letter.
Keep one identity document ready: Aadhaar card, voter ID card, passport, driving licence, National Rural Employment Guarantee Act (NREGA) job card, or a letter issued by the National Population Register. A PAN card is mandatory for loans of Rs. 5 lakh or above.
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