Can I get a Loan against Diamond Jewellery?

We’ve all gone through a phase where an unexpected expense pops up, and you start looking around for quick ways to arrange money. If you own beautiful diamond jewellery, you might wonder, “Can I get a gold loan against this?”

Here’s the thing: while diamond jewellery is undoubtedly valuable, gold loans are approved only based on the gold content in your ornaments and strictly not the diamonds or gemstones.

That means only the purity and weight of the gold part of your jewellery will be assessed to calculate the loan amount. The diamonds, no matter how stunning or expensive, won’t contribute to your loan’s value. So yes, you can pledge diamond jewellery for a gold loan, but the loan will be sanctioned only for the gold portion, not the entire piece’s market value.

If your jewellery has large diamond settings and relatively less gold, the eligible loan amount will naturally be lower. On the other hand, if it’s a gold-heavy piece with smaller stones, you can get a higher amount.

In short, gold loans don’t account for diamonds, only gold.

If you’re looking to unlock the full value of your diamond jewellery, you might want to explore dedicated jewellery or asset-backed loans, but for traditional gold loans, it’s the gold that shines and not the sparkle.

What is a Gold Loan?

A gold loan is one of the easiest and fastest ways to get money when you need it. You simply pledge your gold jewellery or ornaments to a lender, and in return, you receive funds based on the value of that gold. The gold stays safely with the lender until you repay the loan in full.

The loan amount depends on the weight and purity of your gold — the higher the purity and the heavier the ornaments, the more money you can borrow.

Gold loans come with several advantages that make them a popular choice:

• Lower interest rates compared to unsecured loans like personal loans.
• Quick and simple application process with minimal documentation.
• Instant disbursal, so you can get the money in your account within hours.

At IIFL Finance, you can choose from two flexible repayment tenures: 12 months or 24 months, giving you the freedom to plan your repayments comfortably.

In short, a gold loan is a secure, affordable, and hassle-free way to unlock the value of your gold, without having to sell it.

Diamond Jewellery and Gold Loans

It’s a common question: “Can I get a gold loan against my diamond jewellery?” While diamond jewellery holds immense emotional and aesthetic value, IIFL Finance calculates the loan amount based only on the gold content, not the diamonds or gemstones.

Here’s why: the value of gold can be easily verified based on its purity (karat) and weight, which makes it a reliable asset for lending. Diamonds, on the other hand, vary in quality, cut, and certification, making it difficult to determine a uniform resale or loan value.

So, when you bring diamond jewellery for a gold loan at IIFL Finance, the diamonds or stones are carefully excluded during valuation. Only the net weight of the gold is considered to determine your loan eligibility and amount.

This ensures a fair, transparent, and standardized process, helping you get quick access to funds based purely on the real gold value in your ornaments.

Loan Amount Calculation

When you bring your gold or diamond-studded jewellery to IIFL Finance, the appraisal process focuses entirely on the gold content. Experts carefully assess the purity (karat) and net weight of the gold, excluding any diamonds, gemstones, or other embellishments.

While diamonds enhance the aesthetic and sentimental value of your jewellery, they do not contribute to the loan amount. The loan is based solely on the gold portion, which can be verified and standardized easily.

Before pledging your ornaments, it’s important to weigh your emotional attachment against your financial needs. Rest assured, your jewellery will be safely returned once the loan is repaid.

Gold Loan Fees and Charges

When you take a gold loan with IIFL Finance, several factors determine the interest rate and overall charges. The loan amount depends on the weight and purity of your gold, and you can borrow anywhere from ₹3,000 with no upper limit. The interest rates typically range from 11.88% to 27% per annum, depending on the loan amount, gold purity, and your chosen repayment tenure, either 12 months or 24 months.

Apart from interest, there may be other small charges:

• Loan Processing Charges: Nil to 2% of the disbursal amount.

• Documentation Charges: Nil.

• Valuation Fees: Usually included, ensuring your gold is accurately assessed.

To plan your finances better, it’s a good idea to use an online gold loan calculator before visiting a branch. This lets you estimate your loan eligibility, interest, and repayments quickly and conveniently.

With IIFL Finance, you can expect a faster approval and smooth disbursal, making gold loans a hassle-free way to access funds when you need them.

Gold Loan Eligibility Criteria

Getting a gold loan with IIFL Finance is simpler than you might think. To be eligible, you need to be an Indian citizen and own gold jewellery in the range of 18–22 karats. That’s it! There’s no need for income proof or a high credit score, making it accessible for almost everyone.

If you’re wondering whether you qualify, here’s a quick tip: you can check your eligibility online by entering your mobile number. In just a few clicks, you’ll know how much you can borrow and start planning your loan without any hassle.

Gold Loan Application Process with IIFL Finance

Applying for a gold loan with IIFL Finance is a straightforward and quick process. Follow these simple steps:

• Visit the IIFL Finance website or your nearest branch.

• Complete a short loan application form, available both online and offline.

• Submit KYC documents Aadhaar, PAN, or valid address proof.

• Get your gold evaluated to determine the eligible loan amount.

• Receive loan approval within 48 hours after evaluation.

Once approved, the loan amount is disbursed within 1 to 2 hours, directly to your bank account.