Manipal Fintech Blog

Tag: gold purity

  • Understanding the 916 Gold Hallmark and What it Means for Gold Jewelry

    Understanding the 916 Gold Hallmark and What it Means for Gold Jewelry

    In the realm of gold, the 916 gold hallmark occupies a significant position representing much more than a mere stamp. It exhibits a specific purity level thereby shaping the quality and value of the gold item. For those who do not know, 916 hallmark gold is commonly known as 22-carat gold. India is a huge gold market be it coins, jewelry, or gold bars because of cultural and social values. 

    There were several cases of fake gold being smuggled into the market by unscrupulous elements. To prevent such activities and ensure customers’ faith in the system, the Indian government introduced a hallmarking system on all gold sold in or after the year 2000.  Read along to learn more about what 916 gold means and the different aspects associated with it. 

    What is 916 Gold?

    First, let’s have a detailed discussion on what 916 gold is and what its significance is. The digit 916 refers to 91.6 grams of pure gold per 100 grams of alloy. The remaining 8.4 grams are composed of other metals like brass or copper. This mixture gives a vibrant and lustrous appeal and is ideal for gold jewelry as pure gold or 24-carat gold is too fragile for intricate designs. The 916 hallmark establishes gold purity and customers have confidence that they are getting proper value for their money. 

    The hallmarking system is governed by BIS (Bureau of Indian Standards). It is the national standards organization of India deriving powers from the BIS Act of 2000 and it is responsible for certifying gold and silver articles across the country. After evaluating and testing the gold jewelry, BIS allows some marks to certify the authenticity of the gold. BIS hallmarking is a solid proof that metals are pure and the respective jewelry has been made as per national and international purity norms.

    Why & How 916 Gold is Made?

    The 916 gold hallmark system came into force in 2000 and from 15th January 2020, the government made it mandatory for all jewelers to sell only hallmarked gold. As already discussed, 916 gold means 91.6% pure gold. This system guarantees the quality and purity of gold and makes consumers confident about the authenticity of the gold they are purchasing. 

    Gold purity is measured in terms of carat. Pure gold is called 24-carat gold. However, this gold is too soft and fragile and is not suitable for making jewelry. Hence, manufacturers mix some brass, copper, or silver with pure gold and this gold alloy is hard, durable, and suitable for making jewelry. 

    Now, let’s take a look at why pure gold has so much value as compared to other metals: 

    • Gold is a symbol of status, power, and prestige. 
    • Gold is rare and is difficult to extract as compared to other metals. 
    • Gold has been used as a medium of exchange for many centuries. 
    • Apart from investment purposes, gold is also used in heavy industries like defense, aerospace, electronics, and automobile industries because of its non-corrosiveness and malleability. 
    • Gold is vibrant and visually appealing. 

    If you own gold assets and are considering a loan, choosing doorstep services can provide you with a seamless and efficient borrowing experience.

    Apply for a gold loan 24/7 on www.manipalfintech.com, or call at 18003098440

    Importance of Pure & 916 Gold

    The major advantages why you should always go for pure or 916 gold are given below: 

    • Purity Granted: 916 gold hallmarking offers a high level of purity with assurance of the Indian government’s certificate.
    • Durable: Another advantage of buying 916 gold is its durability and long-lasting nature. It can withstand daily wear and tear and will also not lose its shape or integrity. 
    • Perfect for Intricate Designs: The 916 gold retains the malleability and ductility of pure gold allowing for intricate and detailed jewellery designs.    
    • Legal Tender: 916 gold holds intrinsic value and is accepted globally as a form of currency, making it a reliable investment.
    • Valuable: 916 gold maintains a high market value due to its purity. It is recognized worldwide, ensuring that your investment remains valuable over time and can provide significant returns.
    • Internationally used: 916 gold is widely accepted and used across the globe. Whether you are in Asia, Europe, or the Americas, you can easily trade, sell, or purchase 916 gold, making it a versatile and convenient asset.

    Utilize Gold in Times of Need

    Gold is not only an investment instrument but can also be used to obtain liquid money by mortgaging it. You can utilize your gold value by getting an instant loan against gold jewelry. Another benefit of buying 916 hallmarked gold is that you get high per-gram rates for your gold loan.

    Apply now to get an instant doorstep gold loan

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    A gold loan is always superior to traditional loans because of the following reasons: 

    • No Credit Score: A gold loan does not require any credit score or income documents as the yellow metal itself serves as collateral. 
    • No End-Use Restrictions: You can use the proceeds of the gold loan as you like as there are no end-use restrictions unlike business loans, home loans, or car loans. 
    • Lower Interest: A loan against gold comes at a lower interest rate as it is a secured form of borrowing. 
    • Quick Approval: The approval process for gold loans is easy, quick, and convenient leading to immediate fund transfer.  

    Want to go for a gold loan to meet your immediate financial needs? Manipalfintech – India’s leading gold loan aggregator platform is the go-to solution for you. Here are some reasons why you should trust Manipal Fintech to get a gold loan: 

    • Multiple Banks: Manipal Fintech is associated with top banks for gold loans like ICICI, HDFC, and Axis Bank, etc. You can easily compare and get the best gold loan from a best bank.
    • Attractive Interest Rate: Manipal Fintech offers competitive and low interest rates on gold loans, which means your overall loan repayment amount will be quite low and affordable. 
    • Diverse Repayment Scenarios: Manipal Fintech has different gold loan plans according to your need, like SahiMax, SahiDelight, and SahiFexi and you can choose any one of them at your convenience. 
    • Doorstep Service: Taking advantage of its digital prowess, Manipal Fintech has started a doorstep gold loan service where executives will visit your home to complete the formalities and transfer the loan amount. Additionally, you can also visit the nearby Manipal Fintech branch for a gold loan. 
    • Minimal Documentation: Farewell to extensive paperwork, Manipal Fintech requires minimal documentation and zero paperwork. 

    Conclusion 

    916 Gold Hallmark has been a revolutionary step in cleansing fake gold from the market and building trust among customers regarding the authenticity of their purchases. It is important that whenever you are looking to buy any gold jewelry, always check for the 916 BIS hallmark, and in case of any wrongdoings, report the matter to BIS. 

    The 916 gold jewelry can also be used to solve your financial crisis by pledging it and borrowing a loan. Manipal Gold Loan with its range of benefits and hassle-free user interface is the prime contender for fulfilling your gold loan requirements.

    Looking for an instant loan? Avail a gold loan with Manipal Gold Loan and get Instant approval with low interest rates.

    Apply for a gold loan 24/7 on www.manipalfintech.com, or call at 18003098440

  • Mistakes To Avoid When Buying Gold That Effects Gold Loan

    Mistakes To Avoid When Buying Gold That Effects Gold Loan

    Gold is regarded as an ‘eternal metal’ oftentimes, it has numerous benefits and plays a crucial role when it comes to financial planning. Due to its timeless value people always like to buy gold for investment also. The demand for gold lies because of its timeless value which makes it a secure and appreciating asset. Incorporating gold into financial portfolios brings diversification which acts as a stabilizing force and reduces overall risk exposure. Avoiding common mistakes while buying gold, it becomes evident is pivotal for a successful and financially safe journey.

    You can also use your valuable gold asset to get loans against it in need. But not every gold asset is usable to avail loans. According to the RBI, there are certain guidelines and rules for gold items to pledge. Only certified ornaments that meet purity standards can be pledged to avail of gold loans.

    The purity of gold directly influences the terms and conditions of gold loans, impacting the gold loan interest rates and per-gram rate. When it comes to using gold for loans, knowing its purity is very important, especially with the fluctuating nature of gold rates. When contemplating using gold as collateral for loans, paying attention to the gold carat rate is crucial. The per-gram rate of gold plays a significant role in determining the loan amount, making it pivotal to understand how this factor can impact your financial decisions.

    Understanding Gold Purity And Quality 

    There are some government and goldsmith standards that you should know about gold purity. Whether you are buying gold for investment or for wearing purposes, it is always important to consider purity standards. Gold purity is a critical factor influencing its value, especially when it comes to obtaining loans. It’s essential to comprehend the significance of purity levels, as they directly correlate with the gold loan rate per gram.

    Below Are The Factors That Help To Understand Gold Purity

    Gold Karat:

    Karat indicates the purity of gold in gold jewelry, the finest type of gold is 24 karats or 999 gold. A lower karat indicates a lower purity level. In contrast, 14-karat gold is 58.5% pure, while 18-karat gold is 75% pure. Most wearable gold ornaments are made of 22 Karats (916) gold.

    BIS Hallmarking: 

    BIS hallmarking is a quality assurance mark set by the government in India. Only govt agencies can mark the BIS hallmark after inspection. To ensure the purity and authenticity of gold jewelry, search for BIS hallmarks on it. The BIS hallmark is well-known in India and guarantees that the gold satisfies domestic requirements. For E.g. 916 indicates 22 Karat gold while 999 indicates 24 karat pure gold. From April 2023 Indian government has issued a 6-digit unique code for all certified gold ornaments. 

    Color and Appearance: 

    Pure gold is a vivid yellow with a noticeable sheen. However, when other metals are included, gold alloys with lesser purity levels could seem paler or have a different tint. There are different types of gold e.g. Rose gold which is in pink/rose color. The rose gold is made of 18K gold.

    Certification and Stamping: 

    Real gold jewelry is often certified and stamped with markings indicating the amount of purity and karat. Additionally, the purity and authenticity of the gold are guaranteed by certification from government institutions.

    Factors to check while buying a gold jewelry

    1. Purity and Certification: 

      As mentioned above, verify that gold jewelry has a purity hallmark, has been verified by a government agency such as the BIS, and examines its karat to ascertain the degree of purity.

    2. Weight: 

      While buying gold items, always carefully check the gold weight. Many ornaments come with gemstones added, make sure you are not paying for those gemstones. Consider gold and gemstone weight separately.

    3. Price:

      When you buy a gold item, check gold rates in your region. You can check government gold rates state-wise here. Also, check for jewelry-making charges to avoid extra pay.

    The Impact of Gold Quality on Loans Application

    Gold purity directly affects a gold loan application. A lender tests and identifies your precious gold items while processing your loan application. By outlining the mistakes you can easily get the maximum loan value against your gold assets.

    Neglecting Purity Checks

    Purchasing impure or alloyed gold poses significant risks, especially when it comes to obtaining a loan against gold. Failing to ensure the purity of gold can lead to adverse consequences, affecting loan eligibility, gold loan rate, and loan-to-value ratios. Lenders often assess the purity of gold to determine its gold carat rate, and acquiring gold without proper purity verification may result in a lower gold loan rate than expected.

    Impact on Loan Eligibility

    The purity of gold directly influences loan eligibility. As mentioned earlier, according to the RBI  only 18k to 24k gold items can be pledged to get a loan. Lenders prefer pure gold as collateral because of its higher market value and liquidity. If you have impure or alloyed mixed gold jewelry, the lender may reject your loan application.

    Loan-to-Value Ratios

    Loan-to-value (LTV) ratios indicate the percentage of gold loan rate per gram compared to the per gram rate of gold. Higher purity levels generally result in more favorable LTV ratios, providing borrowers with better loan terms. For example, if you are pledged 24K gold you will get a high per gram rate and LTV compared to 22k & 20K gold jewelry.

    Understanding Market Trends

    Staying informed involves actively tracking changes in gold rate per gram, market demand, and geopolitical factors. Regularly check financial news, follow reputable market analysts, and utilize online resources that provide real-time updates on gold loan rates per gram and trends.

    Looking for an instant gold loan? Apply now and get approval within 30* min

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    Tips for Buying Gold Jewelry 

    When you buy gold jewelry in India, you must navigate through certain key points to ensure that your gold assets are valuable and reliable. Here are a few factors to check when you purchase any gold item.

    1. Buy Pure Gold Jewels Only 

      Gold’s value depends on its purity, impure and mixed metal gold can affect your asset value. So, always buy 24k to 18k gold, and avoid below 18k gold jewelry, impure, or alloyed gold. 

    2. Check Hallmarks

      Always check for BIS and manufacture hallmarks on gold items to ensure purity and authenticity.

    3. Avoid Peak Rates

      Buying gold during price peaks can significantly impact the overall gold rate per gram. Making purchases when gold prices are high includes potential financial setbacks.

    4. Make Opportune Moments Purchase

      Identify opportune moments when gold prices are comparatively lower. It potentially provides cost savings and enhances the overall value of the investment. 

    Why Manipal Fintech for Gold Loans?

    In the world of loans against gold, where precision and efficiency matter, it’s crucial to align with trusted partners. Manipal Fintech Gold Loans emerges as India’s most trusted loan service provider against gold assets. We offer a seamless experience without the burden of lengthy documentation processes. With our phygital and customer-first we have achieved quick application approval and instant loan disbursement with zero paperwork. 

    1. Less Documentation: Gold loans are simple to apply for and don’t need a lot of paperwork, they are a popular choice for funding among entrepreneurs. In contrast to conventional loans, a gold loan just needs a small amount of KYC papers, including a PAN card and an Aadhaar card.
    2. No Credit Score Required: Since gold loans are secure loans where your valuable gold works as collateral, you don’t require a minimum credit score to apply.
    3. Lower  Interest Rates: The interest rates on gold loans are often competitively lower than other types of loans. Which makes them acceptable, and one of their main benefits. Furthermore, gold loans frequently have no additional costs, which sets them apart from other loan kinds and may make them a more transparent choice for you.
    4. Instant Loan Disbursement: At Manipal Fintech we prefer user conveniences. Once your loan against gold is approved, your loan amount is deposited in your bank account within 30* mins.
    5. Easy Repayments: Paying a loan back is more headache. To improve our customer experience and make repayments easy we have customized and flexible repayment plans for your gold loans. 
    6. Multiple Banks: We have multiple banks including HDFC, Axis ICICI, etc associated with us to provide the best gold loans. You can select your favorite bank gold loan. 

    The end lines

    Gold the yellow metal is not only for wear or investment, but it also works as a financial tool in times of need. You can easily finance your gold when you need instant money without any hassle. If you already have taken a gold loan and are looking to refinance or transfer your loans, check offers with Manipal Fintech to avail more benefits.

    If you own gold assets and are considering a loan, choosing doorstep services can provide you with a seamless and efficient borrowing experience.

    Apply for a gold loan 24/7 on www.manipalfintech.com, or call at 18003098440

  • All You Need To Know About 24k, 22k and 18k Gold Purity

    All You Need To Know About 24k, 22k and 18k Gold Purity

    Most of us are not aware of gold purity standers. Even we have probably purchased gold at some point in our lives, either for jewellery or as a potential investment. If you’ve ever bought gold, you’ve probably heard the term “karat.” Have you ever wondered what the distinction between jewellery made of 22Kt, 24Kt, and 18Kt is? Are you trying to decide which one to buy as an investment? Well, your quest ends here. We have curated a simple, go-to guide on how what these differences stand for and how they can affect you. You can thank us later!

    Karat or ‘k’- What is that?

    Before we get any further, let us first know what karat or kt means and stand for. It is a term that refers to how pure gold is. It is scored between 0 and 24. Thus, 24K gold is the purest gold that can be purchased.

    Gold is a highly malleable or flexible metal. Thus, to make jewellery, other metals including copper, nickel, silver, and palladium are added to the formula. As a result, it can be better said that karat is a measurement of the proportion of gold to other metals or alloys.

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    Different types of gold according to purity

    When it comes to gold purity, there are two main types: 22k gold and 24k gold. Other variants such as 18k, 16k and 14k also exist. However, jewellery of 22k and 24k are favoured the most over the latter three. Here are the basic distinctions between these varieties:

    24 Karat or 24K Pure Gold

    24k or 24 karat gold is the purest form of gold. This indicates that the gold is entirely composed of pure gold with no traces of any other metals. Gold that is 24 karats pure or above is recognized to have a distinctive brilliant yellow hue.

    Since 24k gold is the purest available, it is always more expensive than 22-carat or 18-karat gold. This form of gold has a far lower density than gold with a lower karat, though. With no other metal to fortify it, 24-karat gold is more malleable and softer than lower karats. Therefore, it is unsuitable for fine and delicate jewellery types.

    22 Karat or 22K Gold

    Jewellery marked with a 22-karat gold content often means that 22 per cent of the jewellery is made of pure gold and the remaining 2 per cent is made of an alloy of gold and another metal. Jewellery frequently uses gold that is 22 karats pure. Various metals, including silver, zinc, nickel, and other alloys, make up the remaining 8.4%. By incorporating additional metals, gold becomes harder, increasing the strength and longevity of gold jewellery. This karat of gold is also referred to as “916 gold” since it is 91.67% pure gold.

    18 Karat or 18k gold

    75 per cent gold and 25 per cent other metals, like copper, silver, etc., make up 18-karat gold. Typically, jewellery with stones is made of 18-carat gold. When compared to 24-carat and 22-karat gold, this type of gold is less expensive. Gold that is 18 Karat pure has a slightly dull gold hue.

    24k, 22k or 18k gold- Which one should you go for?

    If you are opting to buy gold as an investment option, buying 24k or 22k gold is the best option. 24k and 22k are best preferred by banks as collateral in case you want to pledge your gold to acquire a gold loan to help fund an emergency. However, certain gold loan providers like Manipal Fintech Gold loans do accept gold between the purity of 18k to 24k and provide low gold loan interest rates.

    If you own gold assets and are considering a loan, choosing doorstep services can provide you with a seamless and efficient borrowing experience.

    If you own gold assets and are considering a loan, choosing doorstep services can provide you with a seamless and efficient borrowing experience.

    Apply for a gold loan 24/7 on www.manipalfintech.com, or call at 18003098440