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Are diamond jewellery acceptable for obtaining a gold loan
When sudden money needs arise, we all start looking at different loan options. One of the quickest solutions many people turn to is a gold loan. If you own diamond jewellery, you might have wondered whether those sparkling stones can help increase your loan amount.
The truth is, when it comes to a gold loan, lenders focus only on the gold content in your jewellery. Diamonds or other stones are not taken into account while deciding the loan amount. What truly matters is the weight and purity of the gold itself. So, while your diamonds add beauty, it is the gold that decides how much money you can borrow.
Understanding gold loans
Gold loans are a great option to get quick access to funds. As the loan is secured against physical gold jewellery, ornaments and coins, the gold loan rates are usually lower than the other unsecured loans. With easy application process and quick loan disbursal, gold loans provide a great option to finance your urgent needs, making it a cost-effective borrowing option for you. However, it is important to understand that the sanctioned loan amount is based on the gold's weight and purity, and not on the value of any accompanying gemstones. With us, you can get loans ranging from Rs. 5,000 to Rs. 2 crore to manage your planned or urgent needs. This loan also offers a convenient repayment tenure, easy part-release facility, free insurance of pledged gold, and more.
Diamond jewellery and gold loans
While diamond jewellery holds immense value in terms of aesthetics and sentiment, it's worth is not typically considered when obtaining a gold loan. Bajaj Finance determines the loan amount based on the weight and purity of the gold present in the embedded jewellery. The diamonds, despite their individual value, do not contribute to the final loan amount. Therefore, it is essential to have a clear understanding of this distinction when seeking a gold loan against diamond jewellery.
Loan amount calculation
To know the loan amount you can receive against your diamond-studded gold jewellery, it is important to remember that the value will be based solely on the gold content. Bajaj Finance has a standardised method to assess the gold's weight and purity, conducted through an appraisal process. As per RBI, the price of gold per gram used for loan valuation is based on the lower of the previous day's closing price or the 30-day average closing price published by IBJA or a SEBI-regulated commodity exchange.
Hence, while it is possible to obtain a gold loan using diamond jewellery as collateral, it is important to note that the loan amount will be determined solely by the weight and purity of the gold, not the value of the accompanying diamonds. When considering a gold loan against diamond jewellery, weigh the sentimental value of your diamonds against your immediate financial needs. Take the time to understand the terms and conditions to ensure you make an informed decision. By doing so, you can unlock the potential of your gold-embedded jewellery while preserving the sentimental value of your precious diamonds.
Check your gold loan eligibility and leverage the value of your gold based on latest gold rates.
Gold loan fees and charges
When you take a gold loan, the interest rate plays a key role in how much you will eventually repay. The rate is usually decided by factors like the amount of loan you choose, the purity of your pledged gold, and the repayment plan you go for. With low gold loan interest rate, these loans offer a convenient borrowing experience with interest rate ranging from 9.50% to 24.25% p.a. It is always smart to check all related charges in advance, such as processing or valuation fees, so you know the complete cost of borrowing before you apply.
You can also use the online gold loan calculator on our website to get an estimate before visiting a branch. This helps you plan better and understand your loan eligibility.
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Gold loan eligibility criteria
Bajaj Finance has kept its gold loan eligibility criteria simple so that more people can access funds easily. If you are an Indian citizen between 21 and 80 years of age and own 18-22 karat gold jewellery or ornaments to pledge, you can apply. You can also pledge gold coins with purity up to 24 karat. The best part is that you do not need to show income proof or maintain a high credit score, because your gold itself secures the loan. This makes it a quick and reliable option for people from different financial backgrounds.
Pro-tip: It takes just 2 steps to check your eligibility for a Bajaj Finance Gold Loan. Enter your mobile number now.
Gold loan application process
Applying for a Bajaj Finance Gold Loan is quick and hassle-free. Just carry your gold items and a valid KYC document to the nearest branch. After a short valuation of your gold, your loan amount is decided, and once approved, the money is disbursed to your bank account. With minimum paperwork and multiple repayment options, the process is designed to give you funds without any delay. You can either apply online via the Bajaj Finance App or website or visit a nearby branch for in-person assistance. Apply for a gold loan today!
Frequently asked questions
Jewellery Type
Gold Loan using diamond jewellery is an option available to you. However, please keep in mind that we assess the loan amount based solely on the gold piece's value, excluding any attached stones during evaluation. You can pledged gold jewellery, ornaments or coins as collateral for a gold loan. Higher gold purity corresponds to a larger loan amount.
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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. *