How to Check Purity for 21 Karat Gold

How to Check Purity for 21 Karat Gold

Understand how to check the gold purity for 21 karat gold.
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Why gold holds a special place in everyday Indian life

Think about any major celebration in India, and gold is never far away. More than just a financial asset, gold is deeply woven into traditions, symbolising prosperity, faith, and continuity across generations. It marks milestones such as weddings, festivals, and family rituals, while also serving as a trusted form of savings.


Understanding gold goes a step further when you know its carat and price. The carat tells you how pure the gold is, which directly affects its value and usage. Keeping track of gold prices helps you judge its true worth at any given time. Together, this knowledge helps you make smarter decisions, whether you are buying jewellery, investing, or using gold as a financial resource.


What is 21 carat gold?

21 carat gold refers to a gold alloy comprising 21 parts pure gold and 3 parts other metals like silver, copper, zinc, or nickel. With approximately 87.5% pure gold content, the 21-carat gold purity percentage strikes a balance between purity and durability. It is favoured for crafting detailed and enduring jewellery pieces, showcasing intricate designs while maintaining a significant gold content. This caratage, commonly used in jewellery, offers a blend of elegance and robustness, making it a popular choice for those seeking both aesthetics and durability in their gold ornaments.


Additional Read: What is 750 Hallmark Gold? 

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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.

Techniques to check the purity of 21 carat gold

You can try a few simple things to check 21 carat gold purity. But for the best results, it is smart to talk to a jeweller or a gold expert.


  1. Magnifying glass inspection: Examine the gold closely for marks or stamps indicating purity, usually inscribed by reputable jewellers.
  2. Visual examination: Look for any discolouration, tarnishing, or irregularities on the surface, which may suggest impurities.
  3. Magnetic test: Authentic gold does not attract magnets, so using a magnet can help distinguish it from other metals that might contain iron.
  4. Nitric acid test: This test involves using chemicals to assess gold purity. However, it is advisable to seek a professional jeweller's assistance due to the potential hazards associated with the test.

Before buying or selling 21-carat gold jewellery, ensure it is genuine. Check for the BIS hallmark or use tests/machines to confirm its purity. Knowing its purity helps you understand its value for investment or style. With this info, make smart choices when dealing with 21-karat gold purity. 


Want to make the most of your hallmarked gold? Check your gold loan eligibility today and unlock quick funds against your verified jewellery—all while ensuring complete safety and transparency.


 

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