Reserve Price Floor:
Under RBI rules effective April 1, 2026, your gold's auction reserve price must not be less than
90%
of its current assessed value.
After 2 Failed Auctions:
The minimum floor may reduce to
85%
— but never below that under any circumstances.
LTV Limits (Apr 2026):
≤₹2.5L → 85% LTV · ₹2.5–5L → 80% LTV · Above ₹5L → 75% LTV.
Valuation:
Based on actual purity + net weight + RBI benchmark price. Stones and gems are excluded from the calculation entirely.
Surplus Refund:
If auction proceeds exceed your total dues, the balance
must
be returned to you by the lender per RBI directions.
Many borrowers wonder whether a gold loan task can be done on the phone itself or whether the gold has to be presented physically. The answer depends on the service asked for and on the account as such. Gold loan is a secured loan wherein gold ornaments stay pledged with a regulated lender till repayment.
This blog looks at the gold loan services available online through a lender's app and the tasks that may still need a physical step. Which record shows that a service has actually been completed is also explained.
What the App Offers to Existing Borrowers
For existing customers, the public guide for the IIFL Loans App mentions account details, payments, loan documents and customer queries. An account summary, a full statement and an interest certificate are also referred to on the lender's repayment page.
Most gold loan services available online come within this group. Looking at the balance due, downloading a statement or paying off one’s debt could usually start and stop right there. However, just because a particular function is mentioned does not necessarily mean that all requests regarding that are concluded there for everyone.
Online Requests and Branch Steps
Requests can be sorted into three groups for those trying to check whether a gold loan request can be completed in the app. Some finish fully online, some begin online and need one more step, and some involve the gold itself.
Services Linked to the Physical Gold
Anything involving the jewellery generally needs the gold to be present, since a screen cannot show purity or net weight. This is why the gold loan services that require branch visits include a fresh pledge and the collection of released gold. Under the RBI directions, weighing and the purity check are done with the borrower allowed to be present.
Records That Show a Service Is Complete
A request receipt only shows that the lender has received the request. Completion is shown by the outcome, like a document delivered or a payment matched in the statement. For released gold, it is the signed release acknowledgement. The reply to a request generally mentions whether any further step remains.
Eligibility and Valuation
Whether a gold loan is managed online or otherwise, age, residency and ownership conditions come from the regulations and lender policy. Credit history may be considered by the lender as per its internal norms.
RBI (Lending Against Gold and Silver Collateral) Directions, 2025, issued by regulated financial institutions from April 2026, prescribe the LTV ratios. LTV or loan-to-value ratio is the proportion of the value of gold that can be loaned out. It cannot exceed 85% for up to ₹2.5 lakh, 80% for ₹2.5 lakh to ₹5 lakh, and 75% for more than ₹5 lakh.
The gold can be valued at the lower of the closing price of the last day or the average price over the last 30 days either in IBJA or in an exchange regulated by SEBI. It will be adjusted to purity and only net weight of gold will be considered. An extensive credit analysis involving repayment ability will be required when loans for gold and silver exceed ₹2.5 lakh.
Documents Required for a Gold Loan
The KYC (Know Your Customer) file of a gold loan generally includes photo identity proof like Aadhaar, passport or voter ID. Address proof is added where the identity document does not carry the current address.
A PAN card is generally needed for KYC, tax and regulatory purposes. For a borrower without PAN, Form 97, the declaration that took over from Form 60 in April 2026, may be considered as per lender policy. A photograph, bank details and the jewellery make up the rest of the set. Ownership records or a declaration may be asked for where the lender's procedure requires, and further papers depend on the loan amount and assessment.
Steps to Apply
A new gold loan generally moves from request to disbursal in the following manner.
- The applicant approaches a regulated lender and shares the KYC documents.
- The jewellery is presented physically, since the gold itself needs to be seen and tested.
- The lender's valuer weighs the ornaments and checks purity with the applicant present, and a valuation certificate is issued.
- The sanction letter and the Key Facts Statement, a short summary of the loan's cost, set out the terms.
- The agreement is duly signed, and disbursal follows once verification and the remaining formalities are complete.
After full repayment, the directions provide for the gold to be returned within seven working days. A delay caused by the lender carries ₹5,000 a day.
IIFL Finance Support for Gold Loan Applicants
IIFL Finance may provide a gold loan wherever the product is offered. Each loan is based on the borrower's eligibility, the valuation of the gold and the rules in force. The product can be suitable for borrowers who handle routine account tasks on the phone and present the gold only when needed. Rates and fees can vary from one lender and product to another, as funding and risk costs are not alike.
Within the regulations and lender policy, money from a gold loan can be used for genuine personal or business needs, such as:
- Tools and materials for a small tailoring unit
- Travel and stay for a medical consultation in another city
- Semester fees for a nursing course
- Working capital for a seasonal sweets counter
Since the jewellery is only held as security, the borrower stays its owner. It is handed back once the loan has been repaid as agreed.
Conclusion
Most gold loan services available online relate to account details, payments, documents and queries. Tasks involving the jewellery, like a fresh pledge or a release, generally need a physical step. A request accepted in the app only shows that the process has begun. It is the finished outcome that shows completion. In gold loan, funds can be raised on eligible gold while ownership remains with the borrower, subject to repayment.
FAQs
It depends on the exact service, as gold loan services available online differ in how far they go. The reply to the request mentions whether a further check or physical step applies.
Actions involving the jewellery are separate, as an online form cannot establish the purity, net weight or ownership of the gold. Pledging fresh gold and collecting released gold fall in this group.
No. A request for a statement, an interest certificate or an account answer is not a fresh valuation. A valuation is generally linked to a new pledge, top-up or renewal.
Not on its own. An online start only shows the request was received, and identity checks or a physical step may still follow.
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