Gold loan rules from April 2026: how much you can borrow
RBI's tiered loan-to-value limits for gold loans: 85% up to ₹2.5 lakh, 80% up to ₹5 lakh, 75% above. Plus valuation and the 7-day return rule.
Try it: Loan EMI calculatorMonthly EMI, total interest and a year-by-year split of principal and interest for any home, car or personal loan.With gold above ₹1.4 lakh for 10 grams, gold loans have become one of the cheapest and quickest ways to borrow. RBI's newer rules, which lenders had to follow from 1 April 2026 at the latest, set how much a lender can give against your gold for a personal-use loan.
How much you can borrow
The loan-to-value (LTV) limit depends on the size of the loan:
- Up to ₹2.5 lakh: up to 85% of the gold's value.
- ₹2.5 lakh to ₹5 lakh: up to 80%.
- Above ₹5 lakh: up to 75%.
So gold worth ₹2 lakh can get an EMI loan of up to ₹1.7 lakh. For a bullet loan, where you repay everything at the end, the limit counts the interest due at maturity too, so you get less.
How gold is valued
Lenders value gold at the lower of the 30-day average closing price and the previous day's closing price, published by IBJA or a SEBI-regulated commodity exchange, for the purity of your jewellery. It is not the shop price, and only the gold content counts. Stones and making charges are not included.
Getting your gold back
Once you repay, the lender must return your gold within 7 working days. If it is late because of the lender, it must pay you ₹5,000 for each day of delay.
Before you borrow
- Compare the interest rate and processing fee; banks are often cheaper than finance companies.
- Check what happens if gold prices fall: the lender can ask you to top up or repay part of the loan.
- If you miss payments, the lender can auction the gold after giving notice.
- Work out the EMI and total interest in the loan EMI calculator, and compare with a card EMI using the card EMI against loan calculator.
Sources: IIFL: RBI LTV rules for gold loans, ClearTax: gold rate in India, RBI: lending against gold and silver collateral directions.
Rates and rules change. Check your lender's terms. This is general information.
Rules, rates and limits change. Check the official source linked above before you rely on a figure here. Posts never contain referral or affiliate links from the writer.
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