When it comes to securing a gold loan, many individuals often wonder whether diamond jewellery can be used as collateral. The short answer is no. Gold loans are specifically designed to be backed by gold ornaments or coins, not by diamonds or any other types of gemstone jewellery.
Why diamond jewellery is not accepted?
Gold loans are primarily secured by the value of the gold content in the jewellery. The value of diamonds is subjective and can vary greatly depending on the quality, cut, clarity, and carat weight. Additionally, assessing the value of diamonds requires specialised expertise and equipment, which most gold loan providers may not have readily available. On the other hand, the purity and weight of gold can be easily and quickly evaluated, making the process of obtaining a loan straightforward and efficient.
What you can do instead?
If you possess diamond jewellery and are in need of a loan, there are a few alternative options you might consider:
- Sell the diamonds: Selling your diamond jewellery to a reputable jeweller or a diamond buyer can provide you with the funds you need. However, this means you will lose ownership of your jewellery.
- Use gold jewellery: If you have gold jewellery, you can use it to secure a gold loan. The process is simple, and you can get your gold back once you repay the loan.
- Personal loans: If selling your diamonds or using gold jewellery is not an option, you might consider applying for a personal loan. These loans are unsecured, meaning you do not need to provide collateral, but they typically come with higher interest rates.
How to apply for a gold loan?
Applying for a gold loan has never been easier, thanks to various gold loan apps available today. To get started, simply follow these steps:
- Gold loan app download: Search for and download a reputable gold loan app from your smartphone’s app store.
- Register and apply: Complete the registration process and fill out the loan application form.
- Submit gold jewellery: Visit the nearest branch or schedule a doorstep service to submit your gold jewellery for evaluation.
- Receive funds: Once your gold is appraised, the loan amount will be disbursed to your bank account.
Using a gold loan app not only simplifies the application process but also provides you with quick access to funds, making it a convenient solution for those in need of financial assistance.
