| Feature | Gold Nuggets | Refined Gold |
| Appearance | Natural, irregular shapes with unique textures | Uniform and moulded into standardised bars or coins |
| Purity | Varies between 80-95% with some impurities | Up to 99.9% purity after processing |
| Composition | Contains traces of minerals like quartz or silver | Free from impurities, composed entirely of gold |
| Value | Fetches a premium price due to rarity and aesthetic appeal | Standard value based on market gold rates |
| Processing | Unprocessed, in its natural form | Fully refined and processed for purity |
| Use in Loans | Requires detailed purity evaluation for accurate valuation | Easier to evaluate due to standardised purity |
| Preferred Usage | Collectors, investors, and jewellery | Investments, bullion, and standardised jewellery |
How gold nuggets are valued for gold loans?
Gold nuggets are generally not accepted as collateral for loans due to their varying purity and lack of standardisation. Bajaj Finance, for instance, exclusively accepts gold jewellery for gold loans, ensuring consistent and reliable valuations. Gold jewellery undergoes rigorous testing using advanced methods like karat meters to determine its purity. The valuation is based on its weight and the prevailing market gold rate, offering borrowers transparency and fair loan amounts.
Bajaj Finance only accepts 18-22 karat gold jewellery as collateral for gold loans, ensuring a secure and transparent valuation process. Unlike gold nuggets, jewellery is assessed for purity and weight using advanced tools like karat meters.
Using gold nuggets as collateral: Loan eligibility and requirements
Gold nuggets is generally not accepted as collateral to secure gold loans, offering a flexible financing option. Bajaj Finance offers loan against gold jewellery only. Loan eligibility is determined based on the jewellery’s weight, purity, and current market rates. Bajaj Finance also provides hassle-free processing with transparent terms. Using gold jewellery as collateral offers borrowers quick access to funds without the need to sell their assets, making it a reliable option for emergencies.
Gold nugget quality and purity: Impact on loan amount
The quality and
gold purity of a nugget significantly influences the loan amount it can secure. Nuggets with higher purity, typically above 90%, are valued more and offer better loan eligibility as they offer to make pure gold jewellery. The presence of impurities like quartz or silver reduces the nugget’s gold content, impacting its valuation. Bajaj Finance assesses quality using BIS-approved methods to ensure accurate valuation. High-quality gold jewellery also fetches competitive interest rates, making them ideal collateral for borrowers. Maintaining the jewellery’s natural state and avoiding damage further ensures better valuations for gold loans.
Benefits of using natural gold for gold loans
Using natural gold for
gold loans provides several advantages, especially for Indian borrowers. Natural gold, such as jewellery, is a versatile and valuable asset for securing loans. Bajaj Finance offers seamless valuation and processing.
- High purity jewellery ensure higher loan amounts.
- Natural gold retains intrinsic value, even with minimal processing.
- Bajaj Finance provides competitive interest rates for certified gold.
Using natural gold avoids the need to sell, offering asset preservation.
With Bajaj Finserv Gold Loan, you can get a loan amount starting from Rs. 5,000 to Rs. 2 crore. You can also benefit from free insurance of gold, multiple repayment options, and more.
