Is it Possible to Get a Gold Loan Using Diamond Jewellery

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, 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. The loan amount will then be determined based on the current market price of gold per gram.

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.