Saturday, February 4, 2023



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Life + bank=wealth!


To those who lament that this is life. It must be explained that if you keep trying, you can reach Everest in life.


Bank’s gold jewelery loan scheme is an instant helper to deal with unexpected expenses in the struggle of life. If one’s credit score is low, one cannot get a loan through a personal loan scheme.

But you can get loan by keeping gold jewelery as collateral.
Gold jewelry loan

It is a very safe loan scheme for life.

How much money will you get if you pawn any jewel in the bank and what should be the weight of the jewel? What documents are required to get a loan?

There are many questions as to whether one can get a loan by pledging the jewelery that is rightfully owned by another.

To get a gold jewelery loan, you have to fill up the application form and submit it to the bank.

After writing the loan applicant’s name, age, father/husband’s name, address, occupation details, income and other outstanding loan details in the application, the amount to be borrowed should also be mentioned.

Personal identity proof, residence proof and then photograph should be attached to the bank along with the application.

A copy of any of the approved documents such as Aadhaar Card, Driving License Card, Passport, Ration Card, Voter ID Card, Government issued ID Card, Pensioner ID Card etc. should be signed and then submitted to the bank.

It is the life identity proof of the borrower.

A copy of electricity or telephone bill receipt, gas connection proof can be provided as proof of address.

The original document should also be presented to the bank at the time of delivery. Do not provide these proofs if you already have a bank account.

If the loan amount is Rs.50000/- or above, the borrower must have a Permanent Account Number Card (PAN Card) or Form 60/61 (Form 60/61) issued by the Income Tax Department.

Any of these should be provided. Also people above 18 years of age can get gold jewelry loan.

After verifying the application, the jewelery appraiser evaluates the jewelery for its purity, character, weight and also its market value and issues a jewelery appraiser certificate.

Based on this, the bank will determine the loan amount for the jewelry.

Jewelry Appraisal and then Loan Amount

According to the price of gold in the market, the bank will decide how much mortgage amount to lend per gram of gold jewelry.

Before knowing the loan value of jewelry let’s know the types of gold jewelry and their quality and how the bank evaluates which jewelry and which jewelry cannot be pawned.

Jewelery can be divided into four categories.

(1)Casting Jewels
(2)Filigree Jewels
(3) Open Stone Jewels
(4) Closed Stone Jewels.

Gold coin, bangle, dollar and ring are cast jewellery. Bracelet, Ring, Chain, Dollar, Chain, Garland, Necklace, Cashmere, Dudu, Mukkutti, Gimmicky, Dollar Chain, Pendant, Bank, Nethishudi are Wire Ornamental Jewellery. If the jewelery is studded at the top and open at the bottom, it is open jewellery.

If the inlaid jewelry is covered at the bottom, it is covered stone jewelry. The job of the appraiser is to measure and evaluate the quality of the gold jewelry, the weight of the stones embedded in it, the weight of the jewelry if it is filled with lacquer, and the weight of the connecting cords if there are any.

What are the criteria to be deducted from the weight and quality value and the valuation method generally followed by banks:

Jewelry waste

Cast Jewelery General Waste 5%
Wire ornaments 10% of general waste
Open stone
Stone weight waste 10%,
Stone weight waste + Lacquer weight waste 15 %

As per the above table, we can estimate how much gold jewelery will be available for 90 open stone studded jewelery with a total weight of 110 grams.

(1)Measurement of weight : If the weight of 90 stones in a jewel is calculated to be 300 mg then 27 g should be deducted for the stone [(300 x 90)/ 1000]. General waste is 10% i.e. 11 g.

(2) Measurement of quality : As per the bank’s table, when the abrasion rating of this gold jewelery is 88.65%, 10% is deducted for being an open gold jewellery. Accordingly the net grade is 78.65% (88.65 – 10.00).

(3) After weighing and measuring the quality, the market price of one gram of gold should be known. If the price of one gram of gold is Rs.4500 then only 78.65% of the value is as per the above mentioned quality measurement. So the price per gram of this jewel is Rs. 3303/- (Rs. 4200/- x 78.65 %).

(4) Valuation amount by jewelery appraiser = Net weight x Net value of gold i.e. 72 x Rs.3303/- = Rs.2,37,816/-(5) Bank determination for loan = (Net weight x Bank value) 72 x Rs. 2870 = Rs.2,06,640/- As per this example calculation the value of the jewelery appraiser and the net weight of the jewelery as per the bank’s schedule whichever is less the bank will mortgage the jewelery and then lend it. The above gold jewelery can be taken as a loan of Rs.2,06,000/- by mortgaging the bank.

This is a general calculation. There may be some variation in this assessment and determination of loan amount in each bank.

The weight of the stone is calculated based on the size of the stone. Also if the jewelery has rope or brass/silver wire attached to it, their weight will also be deducted from the total weight.

The size of the stone has a “number code” from 7 to 32. Number 7 is the size of the stone and the weight of the stone is 10 mg and size 32 is the weight of 300 mg.

Banks do not allow gold coins, gold biscuits, gold bars to be pledged. Gold coins can be mortgaged if they are attached.

Gold pooja items, utensils, gold thambalam, gold toys cannot be taken as a loan in the bank.

Bank will accept only gold ornaments as collateral under this scheme. The borrower must be the owner of the jewelery by pledging it.

Gold standard text stone

Text stone helps the borrowers to know the quality of the jewelery by pledging the jewelery to the bank.

Coconut oil is rubbed on the text stone to clean it.

If the stone is slightly hard to rub, it is low quality gold. Smoothness is quality gold. If the quality is low gold, the particles will not disperse in the texts.

The abrasion is visible as a bright pressure.

If a drop of nitric acid is left on the text image and the text glows red and disappears, then the gold quality is less than 65%.

If you put salt rock on the text and then make it disappear, it is not gold. Green color is also visible under the text.

Copper and brass jewelry will evaporate when exposed to nitric acid. Silver will dissolve.


Mortgage Receipt

The person who has mortgaged the jewelery in the bank to get a loan should keep the mortgage receipt from the bank safe and then present it to the bank when the jewelery is recovered.

The receipt shall contain the name of the bank where the jewelery has been pledged, the address of the bank branch, the name and also address of the borrower, the details of the jewelery pledged, its weight wise, the total weight of the jewellery, the details of any jewelery broken, the rate of interest on the jewelery loan, the date on which the jewelery was mortgaged, the balance of the loan with interest.


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