What is Gold Hallmarking and Why Is It Important for Availing Gold Loan?

Buying gold jewellery in India is perhaps the most common thing for every class of people, may it be for a bit of a girl. But here, a person should know that they always should buy hallmarked jewellery. They all need to know that if their jewellery is not hallmarked, then the net amount of money they have invested in buying this precious metal is not worth it. This thing is very important for availing of a gold loan as this will help in the valuation of the gold. In turn, the lender or the bank will decide how much money they can give to the borrower. 

What is Hallmark?

A Hallmark on a piece of gold generally indicates gold’s purity in the country. This is also a guarantee of the fineness of the gold. The BIS determines this thing. In India, this Bureau of Indian Standards, popularly known as (BIS) is the main accreditation agency that always certifies and then hallmarks all types of gold jewellery. This main BIS system of hallmarking generally began in April 2000. Here a hallmark consists of a carat, stamp of BIS, the year of a mark, and the jeweler’s identification mark, who is selling it. 

Here there is also a three-digit number on a hallmark. This is the main part that thereby indicates the true purity of gold. For example, if a person had a BIS 916 hallmark jewellery with them, they have a 91.6 percent purity of gold for 22-carat gold. Now, if it is written as a 750, this would mean that they have an 18-carat purity. 

According to the normal BIS standards, it is seen that the fineness marks are like 958, 916, 875, 750, 585, and 375. Here they all indicate the ratings or carats of the gold, such as 23, 22, 21, 18, 14, and 9 carats, accordingly. A person can buy them according to this tally. 

There is also a triangle in the BIS stamp that tells us that the experts have assessed the jewellery minutely. Here the code letter in it represents the year of hallmarking. This thing is also decided by the BIS only. For example, we can see that the letter ‘A’ denotes the year 2000, and here, the letter ‘J’ denotes 2008. Here the BIS hallmark also carries the jeweler’s stamp. This shows the buyers that the jeweler is also BIS certified.

Some of The Important Factors to Look Upon Before Taking a Loan

Currently, as per the market value, the gold prices are touching new heights every day in the domestic and the market. Nowadays, there is a rise in the prices of gold. This has, in turn, boosted the demand for having the best Gold Loan. Due to the recent pandemic, people nowadays do not have cash flow in their homes and businesses. Here they should also see and compare all the options before them while deciding which one is best suitable for them. People should also look for gold loan EMI calculators to see how much money they can get from their gold.

Loan Amount

This article is about how all the lenders and banks determine the Gold Loan Interest Rates for the companies and the individuals taking the ones. Here they also look for the factors that a person should always keep in mind for a gold loan interest rate. Here they should also look for the gold loan rate per gram.  

The loan amount that a person will take also plays a very important role in determining all the Gold Loan interest rates. Here the person may be taking a gold loan from a bank or taking a loan from a big financial institution. It is also a fact that the gold loan amount and the gold loan interest rate per gram amount always depend on the overall gold value that the person deposits. 

Since the price of gold is at an all-time high nowadays, a person taking a loan now will get a higher loan amount. Usually, the gold loan amount ranges from 65% to 90% of the overall gold value deposited by them in the bank. As the gold loan amount is high, a person will get a high amount of loan, and if its price drops, the loan amount will vary accordingly. 

Conclusion

Another important factor to look after here is that the higher the loan amount, the higher the gold Loan Interest rates will be paid by the individual or the company taking it. Many lenders decide the interest rates that will be paid. They do this calculation according to the value of the pledged gold. 

So, when a person chooses the gold loan Interest Rates, it is very important to check the amount of money they require.

Read Also: 4 Common Debt Consolidation Mistakes And How To Avoid Them

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