Your gold loan, explained.

Gold loan · Godavari Gold Loans Ltd · ••••9051

Illustrative

Gold loan · NBFC

Pledge card1 Sep

Owed now

₹1,61,200

at 14% a year

Gold value

₹2,10,000

24 g net · 22 ct

Loan-to-value

71.4%

limit 75% for this size

Auction

28 Oct 2026

₹1,61,200 to stop it

95% of the limit usedthe gold price can fall about 10%

A gold loan of ₹1,50,000 from Godavari Gold Loans Ltd at 14% a year, with interest paid monthly and the principal at the end, against gold valued at ₹2,10,000 (71.4% of its value). Repaying in full gets the gold back; if it isn't repaid, the lender can auction the gold after giving notice.

Myra's most important observations

Loan-to-value

Within the limit

71.4% of the gold's valuelimit 75%

Loan₹1,50,000
Gold's value₹2,10,000
Most allowed₹1,57,500

What it costs

Pledge card p.1, Loan · Pledge card p.1, Interest · Pledge card p.1, Scheme · Pledge card p.1

Interest over 12 months₹21,000

Auction notice

Auction notice p.1, Notice · Auction notice p.1, Auction

Notice dated5 Oct 2026
Auction on28 Oct 2026
Due to stop it₹1,61,200
Reserve price, per the notice₹1,80,000
At least (90% of the gold's value)₹1,89,000

Paying what's due before the auction stops it. If the gold sells for more than what's owed, the surplus is yours and must be paid within 7 working days.

RBI's rules for gold loans

For loans taken before 1 Apr 2026; the newer rules on returning gold and auctions apply from then.

Loan-to-value	75% of the gold's value
Bullet loans	Repaid within 12 months
Getting the gold back	Within 7 working days of full repayment, or ₹5,000 a day
Auction	Notice first; reserve price at least 90% of the gold's value (85% after two failed auctions); surplus returned within 7 working days