What are the Common Reasons for a Gold Loan Rejection?

A gold loan may be rejected if the pledged gold does not meet the minimum purity standards, typically 18k or higher. Financial institutions require gold of a certain purity to ensure its value as collateral. Additionally, if the total weight of the gold is insufficient to support the requested loan amount, the application may be denied. Both the purity and weight of the gold are critical factors in determining the approval of a gold loan.