How much loan can you get against gold in India?

Lesson 45 of 53 · Gold loans · 3 min read · Reviewed 29 Oct 2026

Quick answer

Up to 85% of the gold’s value for loans up to ₹2.5 lakh, 80% from ₹2.5 lakh to ₹5 lakh, and 75% above that, under RBI’s 2025 rules. Gold is valued at the lower of its 30-day average and the previous day’s price, without stones. After repayment the lender returns it within 7 working days or pays ₹5,000 a day.

The loan-to-value limit is 85% up to ₹2.5 lakh, 80% up to ₹5 lakh and 75% above.

For a bullet loan, the limit counts the whole amount due at the end, interest included.

Pledged gold comes back within 7 working days of repayment, or the lender pays ₹5,000 a day.

Key idea: An auction must start at no less than 90% of the gold’s current value, and any surplus is refunded within 7 working days.

Sources

Try the short quiz on this page to check what stuck.

Common questions

How long can a bullet loan run?

12 months, renewable.

Can I borrow against a gold ETF?

Not as a gold loan; gold ETFs and gold fund units are excluded.

Is there a limit on ornaments?

1 kg of gold or 10 kg of silver per borrower.

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