Gold jewellery is often purchased for special occasions, gifted by family members or kept as a valuable asset for the future. However, when you need funds for an unexpected expense, the same jewellery can also help you apply for a loan without selling it.
If your jewellery carries a hallmark, you may wonder whether it can help you get a higher loan amount or make the borrowing process easier. Many people assume that hallmarked ornaments automatically receive better valuations, but this is not always the case.
Before applying for a gold loan, it is important to understand what hallmarking actually means and how lenders use it to assess your jewellery.
What Does Gold Hallmarking Actually Mean?
Hallmarking confirms the purity of gold. In India, the Bureau of Indian Standards (BIS) oversees this process through recognised testing and hallmarking centres. A modern BIS hallmark generally includes three important details:
- Logo: This indicates that the jewellery follows the BIS hallmarking system.
- Purity Mark: It shows the jewellery’s exact gold content, such as 22K916 or 18K750.
- HUID Number: A unique six-character identification code that helps verify the jewellery’s certification.
For example, 22K 916 means the metal contains approximately 91.6% gold, while 18K 750 indicates about 75% gold content. These markings tell you the purity of your ornaments before you approach a lender.
Does Hallmarked Jewellery Get A Higher Loan Amount?
This is one of the most common questions borrowers have. While hallmarking provides information about purity, it does not automatically increase the value of your jewellery. Lenders calculate the eligible amount using the gold’s verified purity, net weight and applicable valuation.
For instance, if two necklaces weigh 20 grams each, one at 18k and one at 22k, the 22k necklace has higher gold content and may support a larger loan.
Since the gold loan per gram offered by a lender depends on the assessed gold value and applicable lending limits, hallmark jewellery can make purity easier to establish, but the actual gold content determines the actual valuation.
Why Do Lenders Still Check Hallmarked Gold?
You might expect a lender to accept the hallmark without further examination. However, lenders still need to inspect the jewellery before approving the amount.
This is because ornaments may contain stones, beads or other materials that do not contribute to the eligible gold weight. Older jewellery may also have undergone repairs or alterations that affect its composition. During the assessment, lenders generally examine:
- The purity of the gold.
- The eligible weight after excluding non-gold components.
- The condition of the ornaments.
- The applicable gold valuation.
These checks help lenders determine the amount they can safely advance against the jewellery.
Can You Get A Loan Without Hallmarked Jewellery?
Not everyone owns jewellery with a BIS hallmark. Some families have inherited ornaments purchased many years ago, while others may own jewellery that was never formally certified. The good news is that non-hallmarked jewellery may still qualify for a gold loan, provided it meets the lender’s eligibility requirements.
In such cases, most lenders, like Manappuram Finance, assess the purity through their own testing procedures. Remember, the absence of a hallmark does not necessarily mean that your jewellery contains less gold. What matters is the purity established during valuation.
How Can You Verify Your Jewellery’s Hallmark?
Before visiting a lender, you can check whether your jewellery carries a valid BIS hallmark. The BIS Care mobile application provides a facility to verify the Hallmark Unique Identification (HUID) number. Simply enter the six-character code and compare the displayed details with your jewellery.
If the information does not match, you can seek clarification or request testing through a BIS-recognised centre. This simple check can help you understand your jewellery better and avoid confusion during the loan assessment.
Conclusion
Hallmarked jewellery provides useful information about gold purity, but it does not guarantee a higher borrowing amount or automatic loan approval. Understanding purity marks, valuation methods and the gold loan per gram calculation can help you approach lenders with clearer expectations.
Whether your jewellery is hallmarked or not, choosing a suitable loan arrangement and understanding its conditions can help you make a more informed financial decision.