Archive · 9 Jun 2025
RBI Finalizes Gold and Silver Loan Guidelines Effective 2026
The RBI has updated the rules for gold and silver loans to make them clearer and protect borrowers.
From April 1, 2026, you can borrow up to 85% of your gold's value for loans up to ₹2.5 lakh, and there's no need for income checks for loans under that amount.
Loans with a single repayment at the end have a 12-month limit.
Lenders must be clear about fees and how they'll handle the loan.
Borrowers are also protected, with limits on how much gold or silver they can pledge.
This aims to improve lending practices and give borrowers more security.
RBI finalized new gold and silver loan guidelines, effective April 1, 2026.
LTV ratio up to 85% for loans up to ₹2.5 lakh; credit appraisal is not required.
Consumption loans with bullet repayment capped at 12 months.
Borrowers can't pledge over 1 kg of gold and 10 kg of silver across all loans.
Lenders must provide clear loan terms, including auction details and applicable charges.
- Who
- Reserve Bank of India (RBI)
- What
- Final guidelines for gold and silver loans, including LTV and borrower-friendly terms.
- When
- Announced June 6, 2025; effective April 1, 2026
- Where
- India
- Why
- To establish a principle-based and harmonized regulatory framework and address potential prudential and conduct-related gaps.
- Effective Date
- April 1, 2026
- Maximum LTV (loans up to ₹2.5 lakh)
- 85%
- Maximum LTV (loans between ₹2.5 - ₹5 lakh)
- 80%
- Maximum LTV (loans above ₹5 lakh)
- 75%
- Repayment Term (bullet loans)
- 12 months
- Compensation for Delay
- ₹5,000 per day
- Auction Reserve Price
- 90% (can be reduced to 85%)
