On What Kind of Gold Assets Can I Get a Loan

What you need to know before pledging gold for a loan

Before you walk into a gold loan, it is smart to know what counts as acceptable collateral. Not every shiny piece will make the cut. Usually, lenders accept gold jewellery like chains, bangles, and rings. Gold bars, or gold-plated items are typically a no-go. Why? Because the value of your loan depends on the purity and weight of the gold you pledge. The purer your gold, the higher the loan amount you can get. So, before you apply, check what you have, understand the valuation process, and ensure your jewellery meets the criteria. It makes approval smooth and stress-free!
 

What collateral can you submit?

You can submit any gold jewellery, ornaments, or coin as collateral against the loan. The only condition that must be met is that the jewellery should be of at least 18-22 karat purity and gold coin up to 24 karat gold purity.

How will it be valued?

After submitting your online application, you will be scheduled for an appointment at our nearest gold loan branch. Your gold jewellery will be weighed, and the value will be determined using lower of the lower of the previous day’s closing price or the 30-day average closing gold price published by IBJA or a SEBI-regulated commodity exchange. If price information for the specific purity is not directly available, the lender shall use the published price available for the nearest available purity and proportionately adjust the weight of the collateral based on its actual purity to arrive at valuation. 

Your loan offer, however, will not be the full value of your pledged gold piece. The maximum loan amount that you can obtain is 85% of the total value of your gold. The RBI has established this capping as an industry standard. 
 

What items should you avoid submitting as collateral?

We do not accept jewellery or ornaments that are made of mixed metals, such as gold and platinum or gold and silver, as collateral. Additionally, your jewellery or ornaments must be of 18-22 karats and gold coins up to 24 karat karat gold purity.

We do not accept other objects such as gold bars, idols, and utensils as collateral either.
 

Pro tip: Do not let your jewellery sit idle—tap into its value with a gold loan that suits your needs. Check your gold loan eligibility today! 

What happens in case my jewellery has gemstones?

As the loan is given only against gold, any diamonds or other gemstones that are part of your jewellery will not be considered as an asset. You can still get a loan against such jewellery, but the amount you are offered will not include the value of the gemstones on it.

Now that you know how easy it is to get a gold loan, simply click on the 'Apply' button right here on your screen to get started. Additionally, you have the option to visit any of our branches with your gold jewellery at your convenience.