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Within seven working days of full repayment, or it owes you ₹5,000 for every day of delay. That is now a uniform RBI rule for every bank and NBFC, in force from 1 April 2026. The same rulebook caps how much you can borrow against gold (85% of value for loans up to ₹2.5 lakh, 80% up to ₹5 lakh, 75% above), requires the lender to assay the gold in your presence and give you a purity certificate, limits bullet-repayment loans to 12 months, and forces a transparent auction process with any surplus returned to you within seven working days.
Within seven working days of full repayment, or it owes you ₹5,000 for every day of delay. That is now a uniform RBI rule for every bank and NBFC, in force from 1 April 2026. The same rulebook caps how much you can borrow against gold (85% of value for loans up to ₹2.5 lakh, 80% up to ₹5 lakh, 75% above), requires the lender to assay the gold in your presence and give you a purity certificate, limits bullet-repayment loans to 12 months, and forces a transparent auction process with any surplus returned to you within seven working days.
Leela pledges four bangles with a finance company in Pathanamthitta for ₹1.8 lakh, repays in full in July, and is told the ornaments are 'at the head office vault' and will come 'next week'. After seven working days the lender is paying her ₹5,000 a day. Most branches find the bangles very quickly once that is pointed out in writing.
The RBI's Lending Against Gold and Silver Collateral Directions, 2025 (issued June 2025, fully effective 1 April 2026) replaced thirty years of scattered circulars.
5 lakh if the gold is genuine, an ownership declaration, a cap of 1 kg of ornaments per borrower, a ban on the lender re-pledging your gold elsewhere, a 12-month limit on bullet loans, a documented auction process with advance notice and a reserve price, return of surplus in seven working days, compensation for loss, damage or purity discrepancy while in the lender's custody, and return of the ornaments within seven working days of closure with ₹5,000 a day for delay attributable to the lender.
The pledge receipt: weight, purity, number of items, photographs, and the value used The loan-to-value actually applied, against the cap for your loan size Whether it is a bullet loan (interest and principal at the end) and its tenure Any auction notice: was it sent to you with a date and reserve price? On closure: the date of full payment and the date of return, in writing
Rolling over a bullet loan year after year without paying interest, until the accrued interest eats the headroom and the lender auctions. Under the new rules renewal requires the interest to be cleared first. Also: not weighing the ornaments when they come back.
Kerala has the highest gold-loan density in the country and the largest gold-loan NBFCs are headquartered here. The directions apply to them identically. Kerala families often pledge across several lenders; the 1 kg cap is per lender and the ownership declaration is per pledge. Unclaimed gold after two years from closure is reported to the lender's board; it is still yours, but go and collect it.
Gold valued at ₹3 lakh at the 22-carat reference price. Maximum loan ₹2.25 lakh (75%, because the loan is above ₹2.5 lakh only if you borrow more; at ₹2.4 lakh the 85% cap for the sub-₹2.5-lakh tier allows ₹2.55 lakh, so the tiers interact; ask the lender to show the calculation). Delay in return of 12 working days after closure: 5 days × ₹5,000 = ₹25,000 owed to you.
If you have not paid the final rupee, including accrued interest, the clock has not started. If the loan has already been auctioned after proper notice, the remedy is the surplus and the process, not return of the items.
Get the closure receipt the day you pay and ask for the return date in writing Day 8 onwards: claim ₹5,000 a day by letter to the branch and nodal officer No resolution in 30 days: RBI Ombudsman; NBFCs are covered
Recovery agents are calling me at night and at work. What are my rights? Can I use my gold instead of collateral? (Vol 1)
Loans & bank disputes
RBI Lending Against Gold and Silver Collateral Directions, 2025 (June 2025, as amended, effective 1 April 2026) · Your pledge receipt and purity certificate · Your closure receipt Last checked: 22 August 2026. Rates, limits and whether you may qualify change. Confirm with the official source before you act. Ask Kerala Rising: Use only general, non-identifying facts.
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This page is general orientation, not personal insurance, investment, medical, legal, lending, tax, employment, or professional advice. Rules, rates, deadlines, and decisions can change. Confirm the current position with the named official source and use a licensed or qualified professional where your situation requires one. Kerala Rising does not decide whether you may qualify, approve claims, or promise an outcome.