Search Suggestions
- Gold Loan
- Money Transfer
- Mutual Funds

What Types of Gold Items can be used for Gold Loans
In India, gold loans are considered a convenient option for taking care of financial emergencies. Although the concept of borrowing money against gold ornaments has always been here, now things have slightly changed. In earlier times, people used to go to traditional moneylenders or pawnbrokers to pledge their gold assets to get money in return. Nowadays, there are several government-authorized financial entities (banks and NBFCs) that have a streamlined process for the same.
Table of Content
- Gold Loans: An Overview
- Types of Gold Items Accepted for Gold Loans
- Factors That Influence Gold Loan Amount
Gold Loans: An Overview
A gold loan is a financial product designed for individuals in urgent need of funds. As the name suggests, one can obtain a loan by pledging some gold assets for a certain period of time. This is a secured loan where pledged gold ornaments act as collateral. Once the loan amount (principal + total payable interest) is fully paid, one can claim his/her pledged ornaments back.
Currently, there are a number of lending institutions offering quick and hassle-free gold loans at competitive interest rates. All you need to do is find a gold loan scheme that matches your requirements, and you can easily leverage the value of your gold items. Unlike other popular loans, gold loans offer complete flexibility in terms of end usage of funds. From covering educational expenses to paying for unplanned travel, and medical emergencies to business expansion, these loans can be availed for a variety of purposes.
Get the Best Gold Loan Today
Types of Gold Items Accepted for Gold Loans
By now you must’ve understood what gold loans are and how they make things easier for individuals seeking financial assistance. Now the next question arises: ‘What kind of gold ornaments can be pledged to borrow money?’. Contrary to popular belief, not all gold items are treated equally while applying for a gold loan.
Read on to understand what gold items are accepted by lenders.
Gold Jewellery
Almost every lending institution accepts all types of gold jewellery, such as rings, necklaces, bangles, earrings, bracelets, etc. However, the purity of gold and its total weight play a crucial role in determining the loan amount. Generally, gold jewellery with purity ranging from 18 to 23 karat is easily accepted for gold loans. Although gold jewellery items without any embellishments are considered the best option for gold loans, you can also use the ones with stones. However, the weight of any embellishments or stones is usually not considered when evaluating the gold for determining the loan amount.
Gold Coins
Another gold ornament that can be used to obtain a gold loan is gold coins. Coins typically have a standard weight and purity, making them easier to evaluate. As compared to jewellery items, these coins are known to have a higher purity percentage. As a result, the loan amount that you can obtain by pledging your gold coins is also higher.
Gold Bars
In India, many people prefer buying gold bars to invest their money. Just like gold coins, these bars also have a higher purity percentage, resulting in a higher loan amount. Generally, gold bars come stamped with their weight and purity, which makes it easier for the lender to determine their value.
Suggested Read: A Complete Guide About Gold Loan Process And Eligibility
Get the Best Gold Loan Today
Factors That Influence Gold Loan Amount
When applying for a gold loan, there are several factors that can affect the loan amount you’re eligible for:
- Purity of Gold: When you apply for a loan, the lending institution assesses the purity of items you’re going to pledge. This is measured in karats, and the higher the karat, the more valuable the gold item will be.
- Weight: The weight of your gold assets is another key element that directly impacts the loan amount. The more weight your gold ornaments have, the higher your loan amount is going to be.
- Market Prices: Another major factor that is taken into consideration is the current market price of gold. The per gram rate directly impacts the gold loan amount. For instance, if you’re applying for a loan today, the lending institutions will use today’s market rate to determine your gold loan amount.
Suggested Read: How To Choose Between A Short-Term And Long-Term Gold Loan
Gold loans offer a quick and efficient way to access funds without the need for extensive paperwork or credit checks. If you’re also looking for some financial aid, you can explore various gold loan schemes offered by Muthoot Finance. We offer hassle-free gold loans at the most competitive interest rates. To get an approximate idea about the loan amount you’re eligible for, use our online gold loan calculator. Or, you can also visit your nearest Muthoot Finance branch for more information.
- Avail gold loan
- Calculate Gold Loan
- Check Gold rate today
- Gold Loan Eligibility
- Interest Rate
- Gold Loan Scheme
- Custom Offers
CATEGORIES
OUR SERVICES
-
Gold Loan
-
Personal Loan
-
Cibil Score
-
Vehicle Loan
-
Small Business Loan
-
Money Transfer
-
Insurance
-
Mutual Funds
-
SME Loan
-
Corporate Loan
-
NCD
-
PAN Card
-
NPS
-
Custom Offers
-
Digital & Cashless
-
Milligram Rewards
-
Bank Mapping
-
Housing Finance
-
#Big Business Loan
-
#Gold Loan Mela
-
#Kholiye Khushiyon Ki Tijori
-
#Gold Loan At Home
-
#Sunherisoch
RECENT POSTS

ELSS vs PPF: Which Tax-Saving Investment is Better for You?
Know More
PAN vs TAN: Key Differences You Should Know
Know More
Need Funds for Your Scrap Business? Here’s How a Business Loan Can Help
Know More
What is ACH? Full Form, Mandate, and Charges Explained
Know More
Build Your First Mutual Fund Portfolio: A Beginner's Guide
Know More
Top 5 SIP Plans to Invest in for the Next 10 Years
Know More
Top Mutual Funds for One-Time Investment in 2025
Know More
What is a Group Insurance Policy? Everything You Need to Know
Know More
NOC Letter: What It Is and Its Importance in Personal Loans
Know More
NPS Vatsalya Scheme: Exploring the Key Features and Benefits
Know MoreFIN SHORTS

What Is the Muthoot Mudra Loan Scheme
Know More
What Is a Doorstep Gold Loan Service?
Know More
What Documents Are Required to Get a Gold Loan?
Know More
What Are the New Rules to Take a Gold Loan in India?
Know More
What Are the Different Types of Mutual Funds?
Know More
How to Check Cibil Score?
Know More
How to Invest in Mutual Funds?
Know More
How to Buy Stocks in India?
Know More
How to Activate your UAN number?
Know More
How to Withdraw PF Amount?
Know More
What Is The Process Of Gold Loan Auction?
Know More
How to apply Gold Loan Online?
Know More- South +91 99469 01212
- North 1800 313 1212