Can You Get a Gold Loan on 18K Gold Jewellery?
Yes. Most banks and NBFCs in India accept 18K gold. 18K gold contains 75% pure gold and 25% alloy metals (copper, silver). The minimum purity threshold for most lenders is 18K — gold below this purity (14K, 10K) is usually rejected.
18K gold is common in modern jewellery, especially branded pieces and international jewellery. While 22K is the Indian standard, 18K items like diamond-studded rings, designer pendants, and imported jewellery are eligible at most lenders.
How Much Less Do You Get for 18K Gold Compared to 22K?
18K gold has 18.1% less pure gold than 22K (0.750 vs 0.916). The loan difference mirrors this: at 75% LTV, 18K gold yields approximately 18% less per gram than 22K gold.
Example: 20g of 22K gold at ₹7,500/g 24K rate gets ₹1,02,870 loan. The same 20g of 18K gold gets ₹84,375 — a difference of ₹18,495. This makes it critical to know your gold's purity before visiting a lender.