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Gold Purity & Valuation for Gold Loans

Karat vs fineness, hallmark (HUID), how lenders test purity and the RBI price benchmark.

Updated 30 September 2026 · 8 lenders tracked
Lowest gold loan rate
8.50%
Indian Bank Jewel Loan
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What you need to know

Your loan depends on the pure-gold content of your jewellery. Lenders test purity, deduct non-gold parts and value the net gold using a benchmark price.

Karat and fineness

KaratFinenessGold content
24K99999.9%
22K91691.6%
20K83383.3%
18K75075.0%
14K58558.5%
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How valuation works

  1. TestingTouchstone, acid test or XRF karatmeter; hallmarked items with HUID are easier to verify.
  2. Net weightStones, beads, lac and hooks deducted.
  3. Benchmark priceLower of 30-day average and previous-day closing price for that purity (IBJA or SEBI exchange).
  4. RecordWeight and purity recorded on your pledge receipt.
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Frequently asked questions

Is hallmarking compulsory?

Hallmarking with a 6-digit HUID is compulsory for jewellery sold by jewellers in notified districts; lenders still test old jewellery.

For information and comparison only. Loan terms, rates and rules change — confirm with the lender and read the Key Facts Statement before borrowing.