Your gold loan, explained.

Gold loan · Narmada Gold Loan · Narmada Bank Ltd · ••••6624

Illustrative

Gold loan · Bank

Pledge card10 Jun

Owed now

₹2,00,000

at 9.50% a year

Gold value

₹3,13,600

32 g net · 22 ct

Loan-to-value

63.8%

limit 85% for this size

Due

10 Jun 2027

in 232 days

75% of the limit usedthe gold price can fall about 23%

A gold loan of ₹2,00,000 from Narmada Bank Ltd at 9.50% a year, with interest paid monthly and the principal at the end, against gold valued at ₹3,13,600 (63.8% 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

63.8% of the gold's valuelimit 85%

Loan₹2,00,000
Gold's value₹3,13,600
Most allowed₹2,66,560
At today's price (₹9,500 a gram)₹3,04,000

What it costs

Pledge card p.2, Charges

Interest over 12 months₹19,000
Fees₹800
Processing fee₹500
Appraisal charges₹300

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