Not Just Jewelry Anymore... Your Gold Is About to Become a Game-Changer, RBI’s Gold Loan Surprise Will Blow Your Mind!

New Delhi(The Uttam Hindu): The Reserve Bank of India (RBI) is set to implement new guidelines for gold loans starting April 1, 2026, aiming to bring more transparency, borrower protection, and uniformity in the lending process across banks and non-banking financial companies (NBFCs).

Under the new rules, borrowers seeking gold loans up to ₹2.5 lakh will be eligible to receive up to 85% of the gold’s value, including interest—an increase from the earlier cap of 75%. This will allow common citizens to access more credit against the same amount of gold.

In a major relief for the lower-income and rural population, no income assessment or credit check will be required for loans below ₹2.5 lakh. This move is expected to make gold loans more accessible to a wider section of society.

The RBI has also introduced a loan tenure cap of 12 months for borrowers who choose to repay both principal and interest together. Additionally, silver will now be accepted as collateral, allowing people to pledge silver jewelry or coins for loans. For better customer protection, the new framework makes it mandatory for lenders to return pledged gold or silver within a fixed timeframe after loan repayment. In cases of loss or damage, compensation must be provided by the lender.

Loan documents will now require clear and detailed disclosures including gold carat quality, weight, and the presence of diamonds or other stones. These changes are expected to standardize lending practices and strengthen trust in the gold loan market, which is widely used by small business owners and households during financial emergencies.