What you need to know
A gold loan is quick, but a few checks protect your jewellery and your wallet.
Checklist
- APR in the Key Facts Statement, not just the headline rate
- LTV and loan per gram offered
- Repayment option and penal interest on delay
- Processing, valuation and renewal charges
- Item-wise gross weight, net weight and purity on the receipt
- Release timeline (7 working days) and compensation
- Auction notice and reserve price clauses
- Part-release and prepayment terms
- Lender’s grievance redressal and RBI Ombudsman contact
- Whether interest rises if you miss monthly interest (NBFC schemes)
RBI protections
| Protection | What it means for you |
|---|---|
| Key Facts Statement (KFS) | Mandatory for all retail and MSME term loans since 1 Oct 2024; shows the all-inclusive Annual Percentage Rate (APR), EMI schedule and every fee |
| Charges not in KFS | Cannot be levied without your explicit consent |
| Validity | At least 3 working days for loans of 7 days or more — time to compare offers |
| Floating-rate reset (RBI, Aug 2023) | At a rate reset you can choose a higher EMI, a longer tenure (without negative amortisation), switch to fixed rate, or prepay; you get quarterly statements |
Frequently asked questions
What is APR?
Annual Percentage Rate — the all-in cost including fees, shown in the KFS.
For information and comparison only. Loan terms, rates and rules change — confirm with the lender and read the Key Facts Statement before borrowing.