5 Top Things to Remember When Closing a Gold Loan

Summary: Closing a gold loan is simple, but you must follow key steps:  Submit your pawn ticket, repay the full amount, collect your gold, and get a No Objection Certificate (NOC). This guide also explains repayment options, applicable charges, and why checking your ornaments before leaving the branch is essential for a smooth and secure gold loan closing process.

Closing a gold loan is a crucial financial step that marks the end of your borrowing journey and the safe return of your precious gold.

How Rising Gold Prices Affect Your Gold Loan in India?

Summary: Rising gold prices in India directly boost your gold loan amount, as loan eligibility depends on the current gold value. With stable charges and flexible repayment, gold loans in 2025 offer higher borrowing power. But falling gold prices can reduce your loan eligibility. Understand how gold rate fluctuations impact loan terms, interest rates, and LTV ratio before pledging your jewellery for the best gold loan in India.

Summary: To apply for a gold loan in India in 2025, you typically need a filled application form, one identity proof, one address proof, and for loans above ₹20,000, a bank statement or passbook. For loans over ₹5 lakh, a PAN card is usually mandatory. As per the latest RBI guidelines, proof of income may now be required to assess repayment capacity.

If you are looking to access some quick cash, a gold loan can be a fantastic option. But before you start, make sure you have all the documents required for a gold loan in place.

Summary: Gold loan durations typically range from as short as 1 day to 12 months, depending on the lender and the loan scheme chosen. Some banks may offer longer tenures up to 24 or even 36 months for specific schemes. Repayment can be made in a lump sum or bullet payments, and some lenders allow tenure extensions if needed. Always confirm terms with your lender to choose the best option for your needs.

Summary: This guide explains the minimum gold weight required to apply for a gold loan, which varies by lender and can be as low as 1 gram. It covers key factors affecting loan eligibility, including gold purity (18 to 24 karats), weight, current market price, and the RBI-mandated loan-to-value ratio of up to 75%. Understanding these elements helps you make informed decisions and secure the best loan against your gold assets.

If you are thinking of taking a gold loan, there is something important to know: the minimum gold weight for gold loans.

Summary: The new RBI gold loan guidelines announced in April 2025 make gold loans safer and more transparent by capping the LTV ratio at 75%, enforcing strict approval checks, standardising gold valuation, and limiting pledges to 1 kg. Borrowers benefit from fairer terms and better protection, while lenders must ensure responsible lending and regular usage monitoring.

Gold loans have always been a trusted financial backup for Indians, helping them meet urgent fund requirements by unlocking the value of their gold ornaments.

Summary: You can get a gold loan by pledging BIS-hallmarked jewellery or bank-issued gold coins. The loan amount depends on purity, weight, market price, and LTV (max 75%). Gold bars, plated, low-purity, mixed-metal, or undocumented gold are not eligible as per RBI guidelines.

Gold loans are a popular alternative to traditional loans for acquiring urgent funds. People choose gold loans because they are easy to get, and the application process is also hassle-free.

Summary: You can calculate your gold loan eligibility by entering your gold's weight, type, and purity into an online gold loan calculator or by manually applying the market gold price and LTV ratio (up to 75%). Alternatively, visit a Manappuram branch for an in-person evaluation. These methods help you estimate how much you can borrow against your gold, ensuring faster loan processing and better financial planning.

Summary: If you fail to repay your gold loan on time, you may face penalties, a drop in your credit score, and risk losing your pledged gold via auction. Persistent default can even lead to legal action. To avoid these consequences, communicate early with your lender, explore repayment options like interest-only or bullet payments, use savings if possible, or seek expert financial advice. Acting quickly can help protect both your credit and your gold.