Gold Loans
Gold loans — secured against pledged gold/silver jewellery, ornaments, and coins — are governed by a comprehensive new RBI framework finalised in 2025 and effective from 1 April 2026. This guide covers the headline change: LTV limits are now tiered by loan size (up to 85% for loans up to ₹2.5 lakh, 80% for ₹2.5–5 lakh, and 75% above ₹5 lakh, versus the earlier flat 75% cap), and must be maintained throughout the loan’s tenure, not just at disbursement. For bullet-repayment loans — now capped at 12 months — LTV must be calculated on the full amount repayable at maturity (principal plus accrued interest), which means the effective upfront disbursement is lower than the headline LTV percentage suggests. We also cover new borrower protections (verifiable proof of ownership, documented purity/valuation basis, a 7-working-day gold-return deadline backed by a ₹5,000/day penalty, simplified norms for loans under ₹2.5 lakh, and transparent auction requirements on default), repayment structure options, banks vs NBFCs, and the end-use-dependent tax treatment that mirrors LAP and top-up loans.