Gold Loan Credit Policy & Eligibility Rules
Gold loan LTV, valuation and tenure norms used by banks and NBFCs.
How lenders evaluate applications
Gold loans are secured by gold ornaments or coins. LTV is set as a percentage of gold value (e.g. 75–90% as per RBI).
Eligibility is largely asset-based; some lenders also check income for higher amounts.
Eligibility at a glance
| Parameter | Typical Requirement |
|---|---|
| LTV (gold value) | Typically 75–90% as per regulator/lender |
| Valuation | In-house or certified; purity and weight |
| Maximum tenure | Usually up to 12–24 months (renewable) |
| Documentation | ID, address proof; income proof for higher amounts |
Policy rules
Key gold loan parameters.
LTV
Loan amount as % of gold value; RBI cap applies.
Valuation
Daily/weekly gold price and purity determine value.
Tenure
Short tenures; rollover possible per lender policy.
Example eligibility scenario
Sample borrower
Example inputs
- Gold value: ₹2L
- LTV: 80%
- Loan required: ₹1.6L
Result
Within LTV – eligible
80% LTV on ₹2L = ₹1.6L; within typical norms.
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