What is 18K Gold

What is 18K Gold

Know all about 18 karat gold and gain valuable insights before making your purchase.

Rs. 5,000 - Rs. 2 crore

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What does 18K gold mean?

Ever wondered why some jewellery shines differently than others? A big part of that difference comes from purity, and that is exactly where 18K gold stands out. When you choose 18K gold, you are choosing metal that is 75% pure gold, with the remaining 25% made up of other metals like copper or silver. These added metals make the gold stronger, giving it a perfect mix of beauty and durability. You get that rich, classic gold colour without the softness of 24K gold. This is why many people prefer 18K gold for pieces they want to wear often—whether it is a ring, bracelet, or a simple chain. When you understand what 18K gold really means, you can pick jewellery that not only looks good but also suits your lifestyle and budget.


Significance of 18 Karat gold

If you love jewellery that feels luxurious but can still handle daily wear, 18 carat gold is an ideal choice. Because it has 75% pure gold, it has a beautiful shine that immediately stands out, yet it remains strong enough for everyday use. This combination makes it a favourite for rings, earrings, necklaces, and even heirloom pieces that you want to pass down. You get elegance without worrying too much about scratches or bends. When you pick 18 carat gold, you choose something that blends sophistication with long-lasting quality. It is perfect for anyone who wants jewellery that stays stunning for years while holding sentimental and financial value.


How to check purity for 18 k gold?

Before buying any 18K gold jewellery, it helps to know how to check if it is genuinely 18K. Here are some easy ways to do that:


  • Look for a hallmark: Check for marks like 18K or 750, which show that the piece has 75% pure gold.
  • Get it tested professionally: A certified jeweller can test your gold using acid testing, electronic machines, or XRF analysis for accurate results.
  • Do a quick visual check: Pure gold has a richer yellow tone. Though not fully reliable, checking the colour and finish can give you an idea.
  • Ask for a certificate: Reputable jewellery sellers provide purity certificates to confirm authenticity.

These simple checks help you buy confidently and ensure your 18K gold truly holds the value you expect.


Have idle gold lying at home? Turn it into instant funds with a Bajaj Finserv Gold Loan today! Apply now


 

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Latest RBI updates

Section

Parameter

Applicable Details

 

Eligibility Criteria

Gold purity accepted

18-22 Karat for jewellery and ornaments

24 karat for gold coins

Eligible collateral types

Gold ornaments, jewellery, and coins

 

 

 

 

 

 

 

 

 

Eligible limit for each collateral type

Ornaments

Total pledged weight across all loans must not exceed 1 kilogram

Gold coins

The total weight of gold coins pledged cannot be more than 50 grams.

Gold Jewellery

As per maximum loan amount.

Overall exposure limit

The total loan exposure across ornaments, jewellery, and gold coins together must not exceed the maximum loan limit of Rs. 2 crore.

Collateral protection

 

Any loss, damage, or discrepancy in the quantity or purity of your pledged gold identified during audit, return, or auction will be recorded and promptly communicated to you or your legal heirs. The reimbursement or compensation process, as per company policy and SOP, will be clearly explained. Delays in collateral release due to lender fault will attract compensation of ₹5,000 per day.

 

 

 

Gold loan renewal

Renewal parameter

You can request renewal of your gold loan before maturity if it remains in standard status and within permissible LTV limits. This facility is available only to existing customers. For bullet repayment loans, accrued interest must be cleared. Renewals are subject to credit checks, fresh applicable charges, and are not allowed after maturity.

 

 

Gold loan top up

Top up parameter

Top-up is allowed before maturity, subject to regulatory LTV limits, credit assessment, and customer eligibility. Fresh fees and charges apply. Top-up after maturity is not permitted, even if dues are outstanding. Top up facility is available only to existing users.

 

 

 

LTV (Loan to Value)

For loans up to Rs.2.5 lakh

85%

For loans between more than Rs.2.5 lakh to Rs.5 lakh

80%

For loans from more than Rs. 5lakh to Rs. 2 crore

75%

 

 

 

Gold Value

Evaluation parameter

As per the latest guidelines, gold loans are offered against specific purity of gold jewellery, ornaments and gold coins, valued using lower of the average closing price for your gold's specific purity over the last 30 days or the previous day's closing price, as published by IBJA or a SEBI-regulated commodity exchange, within prescribed limits and subject to KYC and timely repayment.

Impact of 18 karat gold rate on gold loan

The rate of 18 karat gold plays a big role in how much loan amount you can get. Since lenders calculate your loan value based on the purity and current market rate of your gold, a higher 18K gold rate means you may qualify for a higher loan amount. When the rate dips, the eligible amount may reduce. Keeping an eye on daily prices helps you plan your gold loan smartly and borrow at the right time. 


Pro tip: Manage planned to urgent expenses with ease. Check your gold loan eligibility now and make your gold work for your needs.

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Disclaimer

Bajaj Finance Limited (BFL) has the sole and absolute discretion, without assigning any reason to accept or reject any application as per BFL policy. *