Rajasthani Gold Jewellery and Its Loan Value
Table of Contents
Rajasthani gold jewellery and its loan value confuse even families who have owned the pieces for generations. Suman, in Jodhpur, inherited her grandmother's Kundan necklace set. Heavy, ornate, easily the most valuable thing in the house. When she needed a deposit for a new shop unit, her first thought was to pledge it for a Gold Loan. Her second thought was the confusing one: would all that craftsmanship count? The honest answer is no, and knowing why saves disappointment at the branch counter. Lenders value the gold inside a piece, not the artistry around it. This guide covers the main Rajasthani jewellery types and their typical gold content, how purity drives the loan value under the RBI's rules, what gets deducted from ornate pieces, a worked example of a Kundan assessment, and the steps to pledge with IIFL.
Popular Types of Rajasthani Gold Jewellery
Six styles dominate. Each treats gold differently, which is why their loan values differ so much.
- Gemstones set in a refined gold base, usually 22 to 24 karat gold in the frame.
- Coloured enamel work applied over gold. The gold underneath is often 22 karat; the enamel is worthless to a lender.
- Uncut diamonds mounted in gold. The stones may be precious, but only the gold counts for a loan.
- Gold foil fused onto coloured glass. Striking, and thin on actual gold.
- Lac jewellery. Lac (a natural resin) filled inside a metal shell, sometimes gold, often silver or low-karat gold.
- Tribal ornaments. Chunky pieces from rural Rajasthan, frequently high in weight but variable in purity, sometimes 18 karat or lower.
Kundan and Meenakari: High Craftsmanship, Variable Gold Content
Kundan uses a high-purity gold frame, typically 22 to 24 karat, which is good news. The less good news: the stones, foil backing and setting material add weight the lender will strip out of the calculation. Meenakari sits on solid gold too, but the enamel adds nothing. A 60-gram Meenakari bangle might hold only 45 grams of actual gold. That 45 grams is what earns the loan.
Polki and Thewa: Uncut Stones and Gold Foil Work
Polki's uncut diamonds are excluded entirely from a gold loan valuation, however fine they look. The gold mount is measured, the stones are not. Thewa is the leaner case: a layer of gold foil on glass, so the net gold weight is small even when the piece looks substantial. In both cases, the loan rests on net gold weight after every non-gold deduction.
How Gold Purity Affects the Loan Value of Rajasthani Jewellery
Purity is measured in karats. 24K is pure gold, 22K is about 91.6 percent, 18K about 75 percent. Most Rajasthani jewellery falls between 18K and 22K, since pure gold is too soft for heavy stone-set work.
Here is how the RBI's 2025 directions (effective 1 April 2026) make the maths transparent. Lenders must value gold at the lower of the last 30 days' average price or the previous day's closing price, published by IBJA or a SEBI-recognised exchange. The benchmark rate is for 22 karat gold. Lower purities are converted proportionally, so 18K gold is valued at roughly 18/22 of the benchmark. Assaying happens in front of you, and you receive a signed certificate listing purity, gross weight, net weight and deductions.
|
Karat |
Purity |
Loan value per gram (indicative) |
|
18K |
~75% |
Lower band, proportional to 22K rate |
|
22K |
~91.6% |
Benchmark rate applies |
|
24K |
99.9% |
Rare in traditional jewellery; coins only if bank-issued |
Note: All figures are indicative. Actual amounts, fees, coverage percentages, and eligibility criteria may vary depending on the lender, borrower profile, loan category, and applicable guidelines at the time of application.
BIS-hallmarked pieces move faster through assessment because the purity stamp is already there. Unhallmarked heirlooms are still fine; they just take a few extra minutes of testing.
What Reduces the Loan Value of Ornate Rajasthani Pieces
Three deductions, and they surprise people every time.
- Making charges. Whatever you paid the karigar is gone for loan purposes. Craftsmanship has resale value in a showroom, not in a pledge.
- Stone weight. Gemstones, pearls, uncut diamonds and glass are all weighed and subtracted. In heavy Kundan and Polki sets, stones can be a third of the gross weight.
- Enamel, lac and foil backing. Non-gold material is excluded, full stop.
A worked example makes it concrete. Say a Kundan necklace weighs 80 grams gross. Assaying finds 25 grams of stones and setting material, leaving 55 grams of net gold at 22 karat. At an indicative 22K price of ₹9,000 per gram, the assessed value is ₹4,95,000. Since that puts the loan above ₹2.5 lakh, the 80 percent LTV tier applies (85 percent applies up to ₹2.5 lakh, 75 percent above ₹5 lakh), so the maximum loan works out to around ₹3.96 lakh. The design did not matter. The gold did.
Steps to Get a Gold Loan Against Rajasthani Jewellery with IIFL
- Visit the nearest IIFL Finance branch with your jewellery, or start the process online.
- Carry one photo ID and one address proof. Hallmark certificates help if you have them.
- Trained staff assay the pieces in your presence, weighing out stones and non-gold material.
- You receive a signed purity certificate and a loan offer based on the applicable LTV tier.
- Sign the agreement, with all charges disclosed, and the funds are credited, often within the same visit.
The branch process typically takes under 30 minutes. Your jewellery sits in a secure vault until closure, and RBI rules require its return within 7 working days of full repayment, with ₹5,000 per day owed to you for any delay.
Conclusion
An ornate Rajasthani piece is two assets in one: the artistry, which the market prices, and the gold, which the lender prices. For a loan, only the second matters. Net gold weight, assessed purity, IBJA-linked rates and the RBI's tiered LTV caps decide the figure, not the age of the piece or the fame of its style. Walk in knowing that, and the offer at the counter will make sense instead of stinging. The heirloom stays yours throughout. It simply works for you for a while.
Frequently Asked Questions
Is Kundan jewellery eligible for a gold loan?
Yes. Kundan uses a high-purity gold base, typically 22 to 24 karat. The lender weighs the piece, deducts the gemstones and setting material, and calculates the loan on the net gold weight at the current benchmarked rate.
How is the loan value of Meenakari jewellery calculated?
The enamel coating has no loan value. The lender weighs the gold base, subtracts stones and non-gold material, assesses purity, and applies the LTV cap to the net gold value at the prevailing IBJA-linked price.
Does the age or design of Rajasthani jewellery affect the loan amount?
No. Lenders value gold by purity and net weight alone. An antique piece and a new piece of identical weight and karat fetch the same loan, whatever their difference in showroom or collector value.
Can I get a gold loan on Thewa or Lac jewellery?
Partially. Thewa is gold foil on glass, so only the thin gold layer is assessed and the glass is excluded. Lac pieces qualify only if the outer metal is gold of acceptable purity; silver-based lac items would fall under silver loan rules instead.
What documents do I need to pledge Rajasthani gold jewellery with IIFL?
A valid photo identity proof (Aadhaar, Passport or Voter ID), an address proof, and the jewellery itself. A BIS hallmark certificate, if available, speeds up the purity assessment but is not mandatory.
Disclaimer : The information in this blog is for general purposes only and may change without notice. It does not constitute legal, tax, or financial advice. Readers should seek professional guidance and make decisions at their own discretion. IIFL Finance is not liable for any reliance on this content. Read more
