📘 RBI Gold Loan Rules 2025: A Complete Guide to Loan Limits, Tenure & Eligibility
The Reserve Bank of India (RBI) has announced revised guidelines for gold loans effective from April 1, 2025. These rules are crucial for borrowers relying on gold as collateral for short-term financing. With gold remaining a trusted asset class, the new framework aims to bring clarity, improve borrower protection, and enhance transparency across banks and NBFCs.
Vizzve Finance brings you a detailed breakdown of the new RBI gold loan regulations and how they impact you.
🔑 Key Highlights of RBI’s New Gold Loan Rules in 2025
1. Loan-to-Value (LTV) Ratio
The maximum LTV ratio for gold loans remains capped at 75% of the gold’s value.
NBFCs and banks must reassess the LTV during volatile market conditions.
Loans exceeding this limit will be strictly penalized or disallowed.
2. Loan Tenure
Gold loan tenure is limited to a maximum of 12 months.
Renewal after maturity is permitted only after full settlement of dues.
Bullet repayment schemes are allowed but must be transparently disclosed.
3. Eligibility Criteria
Any Indian citizen aged 18 years or above can avail a gold loan.
KYC compliance is mandatory: Aadhaar, PAN, and address proof required.
Agricultural borrowers may still receive relaxed repayment norms.
4. Interest Rates and Charges
Interest rates must be clearly disclosed upfront.
Hidden charges like processing fees or foreclosure penalties must be eliminated or minimized.
RBI mandates transparent rate structures for better customer awareness.
5. Valuation and Security Norms
Only hallmarked gold jewellery and certified ornaments accepted.
Banks/NBFCs must conduct a standardized valuation procedure.
Gold remains in secure vaults monitored under RBI-approved protocols.
6. Digital Gold Loans
RBI encourages the adoption of digital gold loan applications with biometric verification.
Paperless disbursals and repayments via UPI, NEFT, or IMPS are now industry standard.
🏦 How Vizzve Finance Helps You
Vizzve Finance simplifies your gold loan journey by offering:
Instant loan comparison from top NBFCs and banks.
Transparent LTV insights and EMI calculators.
Real-time updates on RBI rules and borrower rights.
Fast disbursal options through verified lenders.
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📌 Final Thoughts
The RBI’s gold loan rule update for 2025 is designed to protect borrowers, ensure transparency, and formalize digital processes. Whether you’re using gold to meet business expenses or personal needs, understanding these guidelines can help you borrow smarter and safer.
Stay updated with Vizzve Finance — your reliable partner for financial clarity and compliance.
❓ Frequently Asked Questions (FAQs)
Q1. What is the maximum LTV ratio for gold loans as per RBI in 2025?
A: The maximum loan-to-value (LTV) ratio remains at 75% of the gold's market value.
Q2. Can I extend the gold loan tenure beyond 12 months?
A: No. As per the 2025 rules, the maximum tenure is 12 months. Renewal is only allowed after complete repayment.
Q3. Is there any difference in RBI rules for banks vs NBFCs?
A: The core rules remain the same, but banks may offer slightly better interest rates. NBFCs often provide faster disbursals with less paperwork.
Q4. Are digital gold loans safe?
A: Yes, RBI encourages regulated digital lending platforms with full KYC compliance, secure vaulting, and transaction transparency.
Q5. Can agricultural borrowers get different terms?
A: Yes. Farmers can avail concessional interest rates and flexible tenure, subject to providing proof of agricultural income.
Published on: July 27, 2025
Published by: Selvi
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