Gold Loan Eligibility and Documentation: The 2026 Checklist

Published: 19 October 2026

Category: how-to-guides | cardbuzz

Tags: gold loan eligibility, documentation, KYC, Aadhaar, PAN, RBI guidelines

Gold loans have the lightest eligibility bar in Indian retail credit — no salary slips, no CIBIL score, no employer verification. But "light" does not mean "none." Since April 2026, RBI's (Lending Against Gold and Silver Collateral) Directions standardise who can borrow, what documents are needed, and what must happen at the branch counter. This is the complete checklist for 2026.

Who can apply

The eligibility criteria are short. You must be at least 18 years old, an Indian resident, and the legal owner of the gold you are pledging — lenders must satisfy themselves on ownership, and loans cannot be sanctioned where ownership is doubtful. There is no minimum credit score and no income threshold, because the loan is fully secured by the collateral.

Two relaxations from the 2025 directions are worth knowing. First, gold loans up to Rs 2.5 lakh are exempt from credit appraisal entirely — for small tickets, the gold and your identity are the whole underwriting. Second, the tiered LTV structure (85% up to Rs 2.5 lakh, 80% for Rs 2.5–5 lakh, 75% above Rs 5 lakh) means smaller borrowers get proportionally more. If you are pledging family jewellery you do not personally own, most lenders accept it with a declaration or co-borrower arrangement — confirm the specific lender's policy before you carry the gold to the branch.

The document checklist

For most borrowers, the paperwork fits in one folder:

  • Identity proof: Aadhaar card is the primary ID accepted by all lenders. PAN card, passport, voter ID, or driving licence also work.
  • PAN card: Required for loans above Rs 50,000 under income-tax rules — in practice, nearly every gold loan needs it.
  • Address proof: Aadhaar usually covers this; if your current address differs, carry a utility bill, bank statement, or rental agreement.
  • Photographs: One or two recent passport-size photos for the loan form.
  • The gold itself: Typically 18–22 karat jewellery or ornaments; 22-karat is the valuation baseline most lenders use. Purchase bills and hallmark certificates help but are not mandatory.

That is genuinely it for most applicants. No salary slips, no bank statements, no Form 16. If a lender demands income proof for a plain vanilla gold loan, ask why — it is not a regulatory requirement.

What happens at the branch

The sanction process has mandatory steps under the 2025 directions, and knowing them protects you. First, assaying: the lender must test your gold's purity using a standardised procedure, applied uniformly across branches, and you must be present while it happens. Deductions for stone weight, fastenings, and other non-gold elements must be explained to you — not just applied silently.

Second, the certificate: you must receive a written certificate stating the purity, gross and net weight, deductions, a photograph of the pledged items, and the assessed value. This certificate is your most important document after the loan agreement — it is what the gold is returned against, and what any auction is measured against.

Third, the agreement: documentation is standardised, and the lender must disclose the valuation methodology, the repayment schedule, the auction terms in case of default, all charges and fees, and the timeline for returning your gold. All communication must be in your preferred language or the region's language — ask for it if the paperwork arrives in a language you do not read comfortably.

After sanction: your ongoing rights

Your gold goes into the lender's own secured vaults on branch premises, in the custody of the lender's employees. On full repayment, it must be returned within seven working days; delays attributable to the lender attract Rs 5,000 per day in compensation to you. Keep every certificate and receipt until the gold is back in your hands and you have verified each item. The whole process — walk in to walk out — routinely completes within a few hours at NBFC branches and within a day or two at banks. If it doesn't, ask which step is stuck: with this checklist in hand, you will know exactly what "done" looks like.