The Significance of Gold During Diwali

The Significance of Gold During Diwali

Discover the importance of gold during Diwali, why Dhanteras is the best time to buy gold, and tips for buying gold this Diwali.

Rs. 5,000 - Rs. 2 crore

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Cultural importance of gold in India

Gold in India is not just something you buy; it is a part of everyday life, celebrations, and traditions. People see it as a symbol of good fortune, wealth, and security. From weddings to festivals, gold plays a special role and is often passed down through generations. This deep cultural connection is one of the main reasons why the demand for gold jewellery remains strong across the country.


When you look for jewellery that is both durable and beautiful, understanding the price and purity of 19-carat gold becomes important. Unlike 24-carat gold, which is pure but very soft, 19-carat gold has 19 parts pure gold and the rest made up of metals such as copper, silver, nickel, or zinc. This gives it about 79% purity and makes it stronger and better suited for detailed jewellery designs. Knowing the 19-carat gold purity percentage helps you choose pieces that look elegant and last long.


Before buying or selling 19-carat gold jewellery, you should always check its purity. The BIS hallmark is the best way to confirm that the gold is genuine and accurately graded. This helps you understand its real value, whether you are buying it for personal use, gifting, or investment. With the right information, you can confidently evaluate your 19-carat gold and make smart decisions.


Techniques to check the purity of 19 carat gold

You can try a few simple things to check gold purity. But for the best results, it is smart to discuss with a jeweller or a gold expert.


  • Check for the BIS hallmark – This is the easiest and most reliable method. Look for the BIS logo, the “19K” mark, and the jeweller’s identification number on the jewellery.
  • Ask for a purity certificate – Reputed jewellers provide a bill or certificate mentioning weight, karat, and other details to confirm authenticity.
  • Do the magnet test – Pure gold is not magnetic. If your jewellery sticks to a magnet, it may contain more alloy than expected.
  • Try the float test – Gold should sink in water. If it floats or moves slowly, it may have lower purity.
  • Use an acid test (done by a professional) – Jewellers use nitric acid to test the metal’s reaction. This safely confirms whether it is truly 19K.
  • Use an electronic gold tester – Many stores use digital machines that instantly show the karat value and purity percentage.
  • Get it tested at a BIS-approved centre – For complete assurance, visit a certified testing lab where experts provide an accurate purity report.

So, making sure your 19-carat gold jewellery is real and pure is important before buying or selling gold. You can check for a mark called the BIS hallmark to be sure. Or you can do a test or use a special machine to check.

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Latest RBI updates

Section

Parameter

Applicable Details

 

Eligibility Criteria

Gold purity accepted

18-22 Karat for jewellery and ornaments

24 karat for gold coins

Eligible collateral types

Gold ornaments, jewellery, and coins

 

 

 

 

 

 

 

 

 

Eligible limit for each collateral type

Ornaments

Total pledged weight across all loans must not exceed 1 kilogram

Gold coins

The total weight of gold coins pledged cannot be more than 50 grams.

Gold Jewellery

As per maximum loan amount.

Overall exposure limit

The total loan exposure across ornaments, jewellery, and gold coins together must not exceed the maximum loan limit of Rs. 2 crore.

Collateral protection

 

Any loss, damage, or discrepancy in the quantity or purity of your pledged gold identified during audit, return, or auction will be recorded and promptly communicated to you or your legal heirs. The reimbursement or compensation process, as per company policy and SOP, will be clearly explained. Delays in collateral release due to lender fault will attract compensation of ₹5,000 per day.

 

 

 

Gold loan renewal

Renewal parameter

You can request renewal of your gold loan before maturity if it remains in standard status and within permissible LTV limits. This facility is available only to existing customers. For bullet repayment loans, accrued interest must be cleared. Renewals are subject to credit checks, fresh applicable charges, and are not allowed after maturity.

 

 

Gold loan top up

Top up parameter

Top-up is allowed before maturity, subject to regulatory LTV limits, credit assessment, and customer eligibility. Fresh fees and charges apply. Top-up after maturity is not permitted, even if dues are outstanding. Top up facility is available only to existing users.

 

 

 

LTV (Loan to Value)

For loans up to Rs.2.5 lakh

85%

For loans between more than Rs.2.5 lakh to Rs.5 lakh

80%

For loans from more than Rs. 5lakh to Rs. 2 crore

75%

 

 

 

Gold Value

Evaluation parameter

As per the latest guidelines, gold loans are offered against specific purity of gold jewellery, ornaments and gold coins, valued using lower of the average closing price for your gold's specific purity over the last 30 days or the previous day's closing price, as published by IBJA or a SEBI-regulated commodity exchange, within prescribed limits and subject to KYC and timely repayment.

Impact of gold price and purity on gold loan

The gold price and purity play a major role in deciding how much loan you can get against your jewellery. Higher purity gold, like 22 carat, usually gives you a higher loan value compared to lower-carat pieces. Similarly, when market gold prices rise, your eligible loan amount also increases. Since both factors change often, staying updated helps you get the best possible loan offer.


Turn your gold into instant support—handle any expense with ease. Check your gold loan eligibility and access funds when you need them most.

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Disclaimer

Bajaj Finance Limited (BFL) has the sole and absolute discretion, without assigning any reason to accept or reject any application as per BFL policy. *