Your gold loan, explained.

Gold loan · Kaveri Gold Bullet 12 · Kaveri Gold Finance Ltd · ••••3187

Illustrative

Gold loan · NBFC

Pledge card15 Apr

Owed now

₹2,62,369

at 18% a year

Gold value

₹2,85,000

30 g net · 22 ct

Loan-to-value

99.4%

limit 85% for this size

Due

15 Apr 2027

in 176 days

100% of the limit used₹40,950 above the limit

A gold loan of ₹2,40,000 from Kaveri Gold Finance Ltd at 18% a year, repaid in one go at the end, against gold valued at ₹2,85,000 (99.4% 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

Above the limit

99.4% of the gold's valuelimit 85%

Loan with the interest due at the end₹2,83,200
Gold's value₹2,85,000
Most allowed₹2,42,250

What it costs

Pledge card p.1, Charges

Interest over 12 months₹43,200
Fees₹1,700
Processing charges₹1,200
Valuation fee₹500
Extra a month at the late rate₹800

RBI's rules for gold loans

For loans against gold for personal use, from 1 Apr 2026.

Loan-to-value	85% up to ₹2,50,000 · 80% up to ₹5,00,000 · 75% above
Bullet loans	Repaid within 12 months; the interest due at the end counts towards the loan-to-value
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