What Are Gold Beads? Can I Get a Loan Against Gold Beads Jewellery

Gold beads jewellery have always been special in the Indian heritage for centuries, portraying tradition with everyday elegance. These small pieces, often seen in necklaces, mangalsutras, and temple jewellery, are charming and at the same time, hold great value. Whether they’re newly crafted or made from recycled gold, they’re both adornments and valuable assets, especially when the gold prices are increasing each day. Undoubtedly, these gold beads offer high liquidity and be your source of quick cash by getting a loan, without selling them.

What are Gold Beads?

India is known for its traditional jewellery and many of them are built around small spheres known as gold beads. These tiny elements give traditional ornaments like everyday chains, mangalsutra, or elaborate haar their timeless appeal. As pure gold can bend easily, gold beads are made sturdy for daily wear by mixing it with metal alloys like copper or silver. The rising demand among environmentally-aware customers has also given rise to the sustainable jewellery ecosystem in India. Hence, many modern gold bead designs are made from melted, refined, and recycled gold, without compromising on the quality.

For gold loans, lenders focus on the net gold content and purity of gold beads. This makes gold beads jewellery a high-quality collateral, just like bangles or rings. Purity is tested according to its karatage (e.g., 18K or 22K), not on style or craftsmanship, ensuring you get your gold’s worth fairly. Whether the beads are solid or hollow, they provide a practical collateral option for urgent funds.

Types of Gold Beads Used in Jewellery

Gold beads jewellery come in various styles, and there is no ‘one’ answer to how many gold beads in 1 gram as it depends entirely on their size and structure. The smaller the beads are, the more they fit in one gram; whereas larger beads mean lesser pieces per gram. Typically, smaller seed beads may range from 20-50 beads per gram, while larger varieties may only yield 5-15 beads per gram.

For a gold loan, the type of bead directly impacts your valuation:

• Solid Gold Beads: These are composed fully of gold and offer maximum weight and shine, hence fetching the highest loan amounts.
• Hollow Beads: While they look impressive, they contain empty space filled with “lac” cores. These thin gold shells make it lighter yet maintain the look. Lenders typically apply weight deductions of 10-20% to account for the non-gold volume, but these beads are eligible for its purity .
• Handmade and Machine-made: Whether your beads are shaped by skilled artisans or factory-finished, the method of creation or design comes secondary in loan valuation. Lenders value them strictly based on gold content.
• Recycled Gold Beads: Beads made from recycled gold are acceptable for gold loans, as long as it meets the criteria of purity (18K+).

This flexibility ensures most gold beads jewellery qualifies, with solid and higher-purity types fetching better loan amounts. Let’s further focus on this aspect of loan.

Can You Get a Gold Loan Against Gold Beads Jewellery?

Yes, banks and NBFCs in India generally offer gold loans against gold beads jewellery, provided it meets the lender’s purity and valuation standards. During the assessment, the lender evaluates the jewellery’s purity and calculates the net gold weight after deducting stones, threads, wax filling, or hollow portions. The final loan amount is based on the prevailing gold rate and eligible Loan-to-Value (LTV) norms.

Key Eligibility Factors

Purity Check: Gold jewellery is typically accepted if it is 18 karat or above, subject to lender policy. Many lenders prefer higher purity such as 22K for better valuation.

Weight Assessment: The loan is calculated on the net gold weight, after deducting non-gold components like stones, beads filling, threads, or hollow spaces.

KYC Requirements: Basic identity and address proof are mandatory. While lenders may check credit history, gold loans are secured loans and approval is primarily based on the pledged gold’s value.

Lender Policies: Repayment tenure, disbursal timelines, processing charges, and safe custody practices vary by lender. It is advisable to review these terms before proceeding.

Under the 2026 RBI tiered LTV guidelines, your eligibility is based on the total loan amount:

• Loans up to ₹2.5 Lakh: Up to 85%
• Loans ₹2.5 Lakh - ₹5 Lakh: Capped at 80%
• Loans above ₹5 Lakh: Capped at 75%

Gold beads offer quick access to funds, making it ideal for emergencies like medical bills or business needs.

How Gold Beads are Valued for Gold Loans

The valuation process for a gold loan is a transparent process to determine the true market worth of your gold beads. As these beads are often part of detailed and traditional jewellery, lenders need to follow a standard process that ensures accuracy:

• Checking Purity: Lenders use a Karatmeter or XRF analyser to check the purity of the gold. Gold beads are strengthened with metal alloys for durability so it becomes important to check whether the beads are 18K, 20K, or 22K.
• Net Weight Calculation: Once the total weight of the jewellery is found, all that is not gold, like enamel, silk threads, or internal wax/lac used in hollow beads, are separated. This is done to calculate the net gold weight.
• Application of Prevailing Rates: The resulting net pure gold weight is multiplied by the current market rate. Under 2026 guidelines, lenders usually refer to the 30-day average price of 24K gold or the previous day’s market rate to stabilise the valuation.

The final loan amount varies, based on factors like the verified purity of recycled gold beads and alloy composition. A solid bead with higher purity like 22K will get a higher loan-to-value (LTV) than a hollow bead with lower purity (18K). Lenders make sure that you get a fair and competitive loan amount, even recycled ornaments, by concentrating on the maximum worth of the piece.

Benefits of Using Gold Beads Jewellery for Gold Loans

Gold beads are great collateral for a gold loan and offers several advantages, especially for those who need funds without selling their jewellery:

• Instant Liquidity: Get cash in hours by pledging gold beads, minimal credit checks or lengthy paperwork.
• No income proof required: The gold beads are in itself a collateral so additional collateral and income proof is not needed, which is ideal for self-employed and homemakers.
• Flexible tenure and EMI: Repayments can be done over flexible tenure options charged under affordable interest (11.88% - 27% p.a.), suiting different budgets.
• Secure storage: Lenders insure and vault your gold beads jewellery safely until repayment.
• Competitive rates: Gold loans on beads are secured against the gold, so interest rates are lesser than unsecured personal loans.

These perks make gold beads a smart, hassle-free asset for financial needs.