Low-rank matrix approximation (LRMA)-based methods have made a great success for grayscale image processing. When handling color images, LRMA either restores each color channel independently using the monochromatic model or processes the concatenation of three color channels using the concatenation model. However, these two schemes may not make full use of the high correlation among RGB channels. To address this issue, we propose a novel low-rank quaternion approximation (LRQA) model. It contains two major components: first, instead of modeling a color image pixel as a scalar in conventional sparse representation and LRMA-based methods, the color image is encoded as a pure quaternion matrix, such that the cross-channel correlation of color channels can be well exploited; second, LRQA imposes the low-rank constraint on the constructed quaternion matrix. To better estimate the singular values of the underlying low-rank quaternion matrix from its noisy observation, a general model for LRQA is proposed based on several nonconvex functions. Extensive evaluations for color image denoising and inpainting tasks verify that LRQA achieves better performance over several state-of-the-art sparse representation and LRMA-based methods in terms of both quantitative metrics and visual quality.