Money for your businesssecured loanChecked Oct 2026
Gold loan
A loan against your gold ornaments from a bank or a gold loan company. Fast and needs no income proof, but if you cannot repay, the gold is auctioned.
Loan against the gold's value
Up to 85% for loans up to ₹2.5 lakh, lower above that
- For
- Anyone with gold ornaments who needs money quickly
- New RBI rules in force from
- 1 April 2026
- Above ₹2.5 lakh
- The lender must assess your ability to repay
What to know
- The Reserve Bank issued one common set of rules for gold and silver loans in 2025, replacing older circulars.
- For loans repaid in one go at the end, the limit counts the interest as well as the principal, so you receive less in hand.
- Banks usually charge less interest than gold loan companies but take longer.
- The lender must return the same ornaments after repayment and give a written record of weight and purity.
How to apply
- Take the ornaments, Aadhaar and PAN to a bank or a registered gold loan company.
- Get the weight, purity, loan amount, interest rate and auction terms in writing.
- Pay interest regularly; unpaid interest is what leads to auction.
Ask before you apply
We could not confirm these points. Terms change, so ask and get the answer in writing.
| Ask | Where to ask |
|---|---|
| What is the yearly interest rate, and what happens if I pay late? | The lender, in the sanction letter |
| After how many days of default will the gold be auctioned, and how will I be told? | The lender's auction policy |
Other ways to raise money
- Mudra loanCollateral-free business loans in four slabs
- PMEGPLoan with subsidy for new units
- PM SVANidhiStreet vendors and hawkers in towns
- PM VishwakarmaPeople working with their hands in 18 traditional trades
- CMEGP (Maharashtra)Residents of Maharashtra starting a new unit
- Stand-Up IndiaSC, ST and women starting a new enterprise of some size
- CGTMSE guaranteeAny micro or small enterprise that has no property to pledge
- Self-help group creditWomen in rural self-help groups
- Microfinance loanLow-income households with no collateral
Sources
- EY: RBI gold loan guidelines 2025
- Onmanorama: gold loan rules eased, small borrowers can get 85% of gold value
Scheme terms change by government order and differ between banks. Confirm everything with the bank or the scheme office before you commit money. Checked Oct 2026.