What types of gold can be used as collateral?

A wide range of gold items can be pledged as collateral for availing a business loan against gold. Here are the main types of gold that lenders accept:

• Gold jewellery: Financial institutions readily accept bangles, chains, necklaces, rings, bracelets, and other ornaments made of gold. Typically, jewellery with 18K to 24K purity gets maximum loan value. Stones and gem embellishments may reduce the gold weight considered for loan eligibility.
• Gold coins: Coins from reputed mints with 99.5% or higher purity have high value as collateral. Their standardised weight and purity make assessment easy.
• Gold bars: Small and medium gold bars from established brands are ideal collateral. Like coins, bars have marked purity and weight, simplifying evaluation.
• Other gold items: Utensils, artefacts, gold biscuits, etc., can also be pledged after purity verification. Hallmarked items are preferred.

The basic criteria are that gold items should usually have a purity of 18 carats or higher and must be from a verifiable source. Hallmarked gold from reputed jewellers is readily accepted. The purity and weight of ornaments are evaluated during gold valuation.