How to Get a Loan on Jewellery

A loan on jewellery can be a great way to get cash without having to sell it. Many lenders offer these loans online, so you can apply from home and get the money you need right away. You can find out how much you can borrow, what kind of gold you need, and what interest rates apply when applying for a gold loan.

When you need money fast, cash loans on jewelry may be the best option. This is because you don’t have to worry about pawn shops or interest rates. And you can get the money you need in just minutes. Plus, if you ever have to sell the jewelry, you can get your money back.

Maximum loan amount

If you want to purchase expensive gold jewellery but lack the funds, you can apply for a gold loan. These loans are among the most profitable for banks as they do not have to worry about non-performing assets. In addition, you can use your jewelry as collateral to get a loan even if you have a low credit score.

The maximum amount you can borrow depends on the quality and quantity of your gold articles. Most banks will not accept gold ornaments below 18 karat. The bank’s appraiser will inspect your jewellery and determine its worth. However, precious stones embedded in your gold jewellery will not count towards the loan amount.

Minimum quality of gold required

If you have decided to borrow money for your jewellery, the quality of your gold ornaments will play a vital role in determining the amount you can borrow. Lenders generally approve loans for gold objects with a purity of 18 to 22 carats. The higher the carat, the higher the loan amount.

Many banks have their own minimum quality of gold requirement for jewellery loans. Ensure that you check this requirement before you apply. Some banks will require that you pledge 18 carat gold before they will approve your loan. If you don’t own any gold, you can use other types of gold as security.

Another consideration in determining the size of your jewellery loan is the weight. After subtracting any stones, gems, or attachments from the weight of the gold, you’ll be able to get a better estimate of how much gold you need. You can also pledge more gold in your jewellery to obtain a higher credit amount. Generally, you’ll need at least 10 grams of gold as collateral to obtain a jewellery loan.

Interest rates on gold loans

There are many ways to get the best rate on your gold loans. The first way is to compare the interest rates charged by different companies. Depending on the lender, you can expect to pay anything between seven and eighteen percent. Also, be sure to check the processing fees and prepayment charges. Many lenders also impose a fixed service fee, regardless of the size of the loan.

One of the most important factors that determine interest rates on gold loans for jewellery is the loan to value ratio. The higher the LTV, the more the loan amount will be. For example, if your gold is worth Rs 1 lakh, you can expect to pay around Rs 60,000 in interest for that loan.

Another factor that can affect your interest rate on gold loans is the rate of inflation. When the economy is in a period of inflation, people tend to accumulate more gold. This acts as a hedge against inflation and can lower interest rates. In addition, as a previous customer of a bank, you are more likely to be able to negotiate a lower rate.

Maximum loan amount for gold jewellery

Reserve Bank of India recently announced an increase in the loan-to-value ratio (LTV) for gold jewellery and ornaments. The new policy will help improve the borrowing capacity of Indian citizens. Besides, the increase in LTV will enable households to borrow more money without having to sell their gold pieces.

The maximum loan amount for gold jewellery depends on the gold’s carat, which is the percentage of pure gold in the piece. The purer the gold, the higher the valuation. It is important to note that if a piece of jewellery has stones, the value of these stones will be deducted from the gold’s price for loan purposes.


Besides being sentimental, gold jewellery can be easier to repay than a piece of cash. Most gold loans do not take gold bullion or bars as collateral. Depending on the purity and weight of the gold, the amount of the loan can be up to 75% of the jewellery’s value. Unlike other forms of collateral, gold jewellery does not carry a high interest rate and lenders prefer this form of funding over personal loans with adverse interest rates.

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