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RBI Gold Loan Rules

For information

A plain-language summary of the RBI’s rules for lending against gold, for information.

What this policy is

The Reserve Bank of India (RBI) is India’s central bank. It has issued rules for banks and NBFCs (non-banking finance companies) that lend against gold and silver jewellery and coins. The rules are called the Lending against Gold and Silver Collateral Directions, 2025. Regulated lenders had to follow them from 1 April 2026.

Who it applies to

The rules bind lenders regulated by the RBI, that is banks and NBFCs with an RBI registration. They do not directly apply to lenders that the RBI does not regulate. These are mainly governed by state law and by any licence they hold. The rules are shown here for information.

The main rules, in brief

  • Loan-to-value (LTV) is the share of the gold’s value that can be lent. For personal-use loans the limit is:
    • 85% for a loan up to ₹2.5 lakh;
    • 80% for a loan above ₹2.5 lakh and up to ₹5 lakh;
    • 75% for a loan above ₹5 lakh.
  • A personal-use loan where the principal and interest are paid together at the end is limited to 12 months, with conditions for renewal. Please check the RBI’s text to see how it treats loans where interest is paid every month.
  • Gold is valued on its actual purity (22-carat is the reference) and its net weight, and the lender keeps a written record of the valuation.
  • The lender must be satisfied that the borrower owns the gold and must follow the rules on KYC (identity and address checks).
  • The borrower must receive the loan agreement and clear details of the interest and charges.
  • Once the loan is repaid, the lender must return the gold you gave as security quickly, within the time limit set by the RBI. If the lender causes a delay, it may have to pay compensation.
  • Gold can be sold at auction only after the borrower is given notice. The price must be fair and linked to the market value. Any money left over must be returned to the borrower within a fixed time.
  • Lenders may not lend money to buy gold. They may not lend against gold bars or gold ETFs (investment funds linked to the gold price).

Where Zera stands today

This page is a summary for information. It does not state that Zera is registered with, supervised by or approved by the RBI, and it does not say that Zera follows every rule listed here.

Zera’s own loan terms are shown in the Schemes section of this website and in your signed agreement. Zera’s schemes are set by Zera under its own terms. This page does not say that every scheme meets every limit above.

About this summary

The official text is on the RBI website, rbi.org.in. Search for “Lending against Gold and Silver Collateral Directions, 2025”. If this summary and the RBI’s text differ, the RBI’s text applies.

This summary was prepared on 18 October 2026 from published summaries of the RBI’s rules. It has not yet been checked line by line against the RBI’s own text. The RBI has also been combining its rules into consolidated Directions for each type of lender, so the wording that applies to an NBFC may now sit in a different document. Please check the current text on rbi.org.in.

This page is general information. It is not legal advice and does not replace your loan agreement or the law.