If you are thinking of taking a loan by pledging gold or silver, then there is big news for you. The Reserve Bank of India (RBI) has made many important changes in the rules related to it. The aim of the new rules is that the common people get loans easily and banks or loans institutions should work in a transparent manner. Now you will be able to get more loans, less paperwork will be done and if you repay the loan, then your gold will also get back soon. These new rules will be applicable from 1 April 2026.
To which rules will apply
The Reserve Bank of India (RBI) has made a big change in the rules related to the loan received by mortgaging gold and silver. The aim of this new framework released on June 6 is that customers should get more facilities and loans institutions should be monitored and strictly. These new rules will be applicable to all commercial banks, NBFCs, cooperative banks and housing finance companies.
1. Now you will get more loans
Now customers can take a loan of up to 85% of the gold price, which was 75% earlier. This rule will be applicable to loans (including interest) up to Rs 2.5 lakh. For example, if you have gold worth Rs 1 lakh, now you can take a loan of up to Rs 85,000, which was earlier Rs 75,000.
2. Income or credit check will not be for loan up to Rs 2.5 lakh
Loans inside this limit will no longer need to check the income proof or credit score. With this, people of rural and low income class will be able to get loans easily.
3. Bullet repayment loan limit fixed
Bullet repayment loan, in which the entire principal and interest are to be repaid at the end, now it will be mandatory to repay in 12 months.
4. Gold-silver limit to be pledged
Now the limit has been fixed for the maximum gold and silver mortgage.
Gold Jewelry: 1 kg
Gold coins: 50 grams
Silver jewelry: 10 kg
Silver coins: 500 grams
These limits will apply to a customer by mixing all branches.
5. Gold will return fast after repaying the loan
Now after closing the loan, it will be necessary to return gold or silver on the same day or a maximum of 7 working days. If late, the bank will have to pay compensation of Rs 5,000 to the customer for every day.
6. Full compensation will be given in case of loss or loss
If the mortgage is lost due to the mistake of gold or silver bank, the customer will be given full compensation.
7. Transparent auction process
If the customer is not able to repay the loan and the bank auctions gold, then notice will have to be given before the auction. The reserve price will not be less than 90% of the market price (85% after the auction failed twice). The remaining amount in the auction will have to be returned to the customer in 7 days.
8. It is necessary to give information in local language
Loan conditions and valuations will be given in the local language of the customer. If the customer does not know how to read and write, he will be informed in the presence of a witness.
When will the new rules come into force?
This entire new system will be applicable from 1 April 2026. The old rules will be valid on the loan taken before this. This move of RBI will make it easier, transparent and safe to take a loan on gold and silver. Especially people living in small towns and villages will get a big benefit from this.