Accepted Gold Qualities: 24Karat, 22Karat, For Gold Loan

Get a gold loan with accepted gold qualities of 24Karat and 22Karat. Read to know the accepted gold loan qualities & the differences between them. Read now!

13 Apr,2023 12:28 IST 2391
Accepted Gold Qualities: 24Karat, 22Karat, For Gold Loan

In Indian households, for centuries gold has been accumulated as a security measure that can be used in hard times.

However, additional ways to monetize and use this latent asset have emerged over time to support requirements other than those of financial emergencies. Therefore, the value of gold as a precious asset has grown. Examples include part-financing a dream wedding, a dream trip, or funding for educational needs.

One of the options to raise funds against gold is a gold loan, which is a secured form of credit obtained by a borrower from a bank or non-banking financial institution by pledging their gold to the lender as collateral.

The lender temporarily holds the gold jewellery that is used as collateral to secure the loan.

Any lender who offers a gold loan will base the amount to be sanctioned on the total weight of the gold. The various qualities of gold can affect the offered gold loan amount.

Most lenders require the purity of the jewellery to be above 18 karats.

It must be noted that the weight of other items, such as stones, gems, diamonds, etc., is not usually included when determining the total weight of the gold ornaments. Only the gold content of the ornament will be used for the calculation.

Therefore, one must be aware of how the gold quality is determined with what is the difference between 22 karat and 24 karat gold.

Meaning of Karat In Terms Of Gold Quality

The grade of gold and its objects, such as gold bars, coins, jewelry, etc., are measured in karats, or “K”. Therefore, when purchasing gold, the jeweller or any other selling organisation will always specify the gold's karat or carat weight.

Since the quality of gold is difficult to differentiate when viewed with the naked eye, it is important to denote gold in carats as this makes judging the quality of the gold easier. It is therefore best to check the karats of the gold to secure the best price when selling gold or acquiring any gold-related items.

In India, gold articles are measured through a karat scale which ranges from 0-24. Here zero karat would be a fake gold ornament, while 24 carats or karat is of the highest possible quality.

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Gold is a very soft metal, so in order to make gold objects, it must be combined with other metals like nickel, copper, silver, etc. The karat gauges the proportion of other metals combined with gold. The higher the carats, the lower the number of other metals in the gold object.

In India, 22-carat or karat and 24-carat or karat gold are the most widely bought gold quality.

The purest kind of gold available to consumers or jewellers on the domestic and international markets is 24-k gold, often known as 24-carat gold. It contains 99,99% gold with no other mixed metal.

Gold articles made out of 24-carat or karat gold and are considered to be the best in quality as they are of the highest purity. However, as it is very fragile metal and non-durable 24-carat gold is not popular to make gold jewellery, but is used in electrical devices and other medical equipment.

After 24-carat, the next best quality is that of 22-carat gold, which has 91.67% pure gold and is the widely used gold to make jewellery and other gold articles. As the content of other metals mixed with pure gold is higher in 22-carat gold, therefore, its price is lower than 24-carat gold.

Gold prices fluctuate on a regular basis and depend on several factors such as geopolitical tensions, the value of the rupee against the dollar, demand and supply. Therefore, one must check the price of gold before seeking a gold loan to ensure they get the best value for their asset.


A gold loan is one of the easiest and quickest forms of credit, however, one must ensure they have knowledge of the quality of the gold to be submitted as collateral to ensure they get the best deal for their loan.

There are many important considerations one must keep in mind before taking up a gold loan, including convenience, loan approval process, loan size, gold rate, and other expenses that a lender may charge.

IIFL Finance offers one of the best value propositions for gold loans. It offers a digital gold loan, has cheaper interest rates than most of its competitors, and disburses the money in the shortest amount of time. For those who require small-ticket loans for a brief period, IIFL Finance also provides the smallest loan amount.

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Disclaimer: The information contained in this post is for general information purposes only. IIFL Finance Limited (including its associates and affiliates) ("the Company") assumes no liability or responsibility for any errors or omissions in the contents of this post and under no circumstances shall the Company be liable for any damage, loss, injury or disappointment etc. suffered by any reader. All information in this post is provided "as is", with no guarantee of completeness, accuracy, timeliness or of the results etc. obtained from the use of this information, and without warranty of any kind, express or implied, including, but not limited to warranties of performance, merchantability and fitness for a particular purpose. Given the changing nature of laws, rules and regulations, there may be delays, omissions or inaccuracies in the information contained in this post. The information on this post is provided with the understanding that the Company is not herein engaged in rendering legal, accounting, tax, or other professional advice and services. As such, it should not be used as a substitute for consultation with professional accounting, tax, legal or other competent advisers. This post may contain views and opinions which are those of the authors and do not necessarily reflect the official policy or position of any other agency or organization. This post may also contain links to external websites that are not provided or maintained by or in any way affiliated with the Company and the Company does not guarantee the accuracy, relevance, timeliness, or completeness of any information on these external websites. Any/ all (Gold/ Personal/ Business) loan product specifications and information that maybe stated in this post are subject to change from time to time, readers are advised to reach out to the Company for current specifications of the said (Gold/ Personal/ Business) loan.

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