how much loan can I get against gold?

the amount of a loan against gold depends on two things, the market value of the gold being pledged and the loan-to-value (LTV) slab that the requested amount falls into. under RBI's revised gold loan framework, which lenders had to implement by 1 april 2026, the ceiling on a consumption loan is 85% of the gold's value up to ₹2.5 lakh, 80% above ₹2.5 lakh and up to ₹5 lakh, and 75% above ₹5 lakh, and those slabs are measured on the borrower's total consumption borrowings against gold rather than on each loan taken separately. no numeric LTV cap is prescribed for gold loans raised for income-generating or farm purposes. valuation rests on purity and weight alone, so design, brand, and craftsmanship add nothing to the assessed value.

as an illustration, 20 grams of 22-karat gold priced at roughly ₹13,200 a gram in july 2026 carries a gold value of about ₹2.64 lakh, and pledged on its own at 85% LTV that could support a loan of close to ₹2.24 lakh, an amount that still sits inside the ₹2.5 lakh slab. the same 20 grams pledged as part of a larger loan falls into a lower slab, which brings the sanctioned amount down even though the gold itself has not changed.

the per-gram rates used here are dated to july 2026, when 24-karat gold ran at roughly ₹14,400 a gram and 22-karat at roughly ₹13,200 a gram, or about ₹1.44 lakh and ₹1.32 lakh for 10 grams. gold prices move every day and each lender applies its own risk limits inside the RBI ceilings, so these figures are indicative and worth confirming with the lender before any gold is pledged.

what decides how much loan can be taken against gold

three factors set the number, the purity of the gold, its net weight, and the slab that the total loan lands in. RBI treats 22-karat as the valuation benchmark, and gold of a lower karat is valued down in proportion to its actual gold content. weight is counted net of stones and anything else attached that is not gold, so the figure on a jeweller's bill is usually higher than the weight a lender will work with.

for the price applied to that weight, lenders take whichever is lower of the 30-day average rate or the previous day's closing rate. that convention keeps one unusually volatile trading day from distorting the valuation in either direction.

gold loan LTV slabs and the amount each one allows

these percentages are ceilings rather than guarantees, since a lender is free to set its own LTV below the regulatory cap based on internal risk assessment. what a particular bank or NBFC actually offers on the same ornaments can therefore land well under the maximum RBI permits.

why a higher-value gold loan gets a lower LTV

smaller loans tend to come from borrowers with fewer alternatives, often during an emergency, and RBI has built more room into that end of the scale on purpose. larger loans carry more downside for the lender if gold prices fall, which is why the ceiling tightens as the loan size grows.

the ratio also has to hold for the entire loan term and not only on the day of sanction. a sharp fall in gold prices partway through the tenure can lead the lender to ask for a partial repayment or additional gold, so that the LTV comes back within the prescribed limit.

how much gold can be pledged in total

separate from value, there is a hard ceiling on quantity. RBI caps the pledge at an aggregate of 1 kg of gold ornaments or 50 g of gold coins per borrower, and where silver is accepted the cap is 10 kg of silver ornaments or 500 g of silver coins. the directions define ornaments so as to exclude jewellery, and each cap is aggregated across all loans outstanding to that borrower rather than applied loan by loan, so the quantity limit binds regardless of what the value calculation would otherwise allow.

what to confirm before taking a gold loan

a few details decide the final amount and the cost of getting the gold back, and they are settled at the time of pledging rather than later.

• the karat value the lender is actually applying to the pledge, which is not the same as the market gold price quoted that day
• the LTV slab that the requested loan amount falls under, since a slightly smaller loan can sit in a more favourable slab
• the valuation certificate, which records weight, purity, and assessed value at the time of pledging
• the loan tenure, because a consumption gold loan repaid as a single bullet payment is capped at 12 months and can be renewed only once accrued interest has been paid and a fresh assessment done, and because the LTV on a bullet loan is computed on the amount repayable at maturity, which leaves the cash disbursed below what the headline percentage suggests
• the gold return timeline, where release on the same day as full repayment is the primary obligation and seven working days is the outer limit, after which the lender owes ₹5,000 for every day of delay attributable to it

frequently asked questions

does jewelry design affect the gold loan amount?

lenders value only the gold content, measured by net weight and purity. the design, craftsmanship, or brand of the jewelry does not enter that valuation.

can I get a higher LTV by splitting one large loan into smaller ones?

for consumption loans the LTV slabs are measured on the borrower's total borrowings of that kind rather than on each sanctioned ticket, so splitting a large requirement into smaller loans does not change the applicable slab.

what happens if gold prices fall during the loan tenure?

the LTV has to stay within the limit for the full term of the loan. if a price drop pushes the ratio past the prescribed cap, the lender may ask for a partial repayment or additional gold to correct it.

is silver accepted as collateral for a gold loan?

some lenders do accept silver under RBI's updated framework, subject to its own quantity cap of 10 kg of silver ornaments and 500 g of silver coins, aggregated across that borrower's loans. whether a particular lender accepts it at all needs to be checked with that lender.

how long does it take to get the gold back after repayment?

release of the pledged gold on the same day as full repayment is the primary obligation, with seven working days from that date as the outer limit. beyond that, the lender owes ₹5,000 for every day of delay that is attributable to the lender.