Can I get a loan against 18-karat or 14-karat gold jewelry?

Many people wonder whether they can avail a gold loan using lower purity jewellery. If you own 18-karat gold ornaments, the answer is often yes, but it depends on the lender.

18 carat gold loan is accepted by several leading gold loan providers in India. Lenders assess the purity and net gold content after deducting stones or other materials. Because of the lower purity compared to 22-carat gold, the loan amount you receive per gram is usually lower. Still, it remains a viable option for quick funds without selling your jewellery.

On the other hand, 14-karat gold is generally not accepted by most lenders. The purity is considered too low for standard gold loan schemes. Some NBFCs or smaller financiers may evaluate it case by case, but approval is rare and the value offered tends to be minimal.

Before applying, get your jewellery hallmarked and carry valid ID proofs. Visit a few trusted lenders or check their websites to understand their specific purity requirements for gold loan. Comparing options helps you maximise the eligible amount.

In short, 18-karat gold jewellery can often secure a gold loan, while 14-karat usually cannot. Always confirm with the lender for the best terms on your gold loan.