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.
An applicant with only Aadhaar may plan a larger gold loan for a business or family need. At ₹6,90,000, the lender asks for more than identity proof. PAN and income records both come into the picture.
A gold loan is a loan against gold ornaments, kept by a regulated lender as security until repayment. This blog explains is PAN card mandatory for 690000 rs loan and what the file looks like at this size. PAN and the rules come first. The 75% slab, documents, valuation and steps follow.
PAN in a Larger Gold Loan
PAN, or Permanent Account Number, is a ten-character alphanumeric number issued by the Income Tax Department. A PAN card is generally required for a loan of this size under KYC, tax and regulatory requirements. Form 97 may be considered where there is no PAN, depending on lender policy.
Searches like 690000 loan pan card mandatory may point to a ₹50,000 limit. Different transactions carry different PAN rules. A borrower asking is pan card needed for a 690000 loan is really asking about KYC.
Rules Above ₹5 Lakh
The RBI (Lending Against Gold and Silver Collateral) Directions, 2025, implemented by regulated lenders from April 2026, set no minimum credit score. Above ₹2.5 lakh of total gold and silver loans, a detailed credit assessment, including repayment capacity, is required.
Since ₹6,90,000 is more than ₹5 lakhs, LTV on consumption loans will be capped at 75%. If the amount is less than this, the limit will be 85% until ₹2.5 lakhs and 80% until ₹5 lakhs. For is PAN card mandatory for 690000 rs loan, these rules sit alongside PAN.
What Changes at This Size
The 75% Ceiling
More gold is needed for the same loan amount than in the lower bands. The exact quantity varies with the price, purity and deductions on the day.
Bullet Repayment Limit
In a bullet loan, principal and interest are paid together at the end. Under the directions, bullet loans for personal use are capped at 12 months. Renewal needs a formal request and a credit assessment, with accrued interest paid and the LTV within limits.
PAN in the Check
PAN helps match records during the assessment. In answering is pan card compulsory for 690000 rs loan, PAN supports identity, not eligibility on its own.
Documents Required for a ₹6,90,000 Gold Loan
For applicants asking is pan card required for a 690000 rs loan, the papers at this size support three checks: identity, income and the gold. Aadhaar, a passport or a voter ID covers identity and address. A PAN card, or Form 97 where there is no PAN, is taken as per lender policy.
Salary slips or income tax returns are commonly asked for, along with bank statements. The ornaments complete the file. Further papers depend on the lender's policy.
Eligibility and Valuation
Age, residency and ownership conditions are set by the rules and lender policy. An ownership declaration may be sought.
The gold is valued at the lower of the previous day's close and the 30-day average, from IBJA or a SEBI-regulated exchange. The rate is for the purity found, and only net gold counts. Stones and fittings are not counted. The 75% ceiling is then applied. On is PAN card mandatory for 690000 rs loan, PAN plays no part in this value. Interest rates and charges vary across lenders.
A pan card loan advertisement may suggest PAN alone is enough. At this size, the assessment and the gold check still apply.
Application Process
- The customer visits the branch of a licensed finance company or begins online, wherever feasible.
- KYC is completed with PAN or Form 97, and income records are shared.
- The lender will assess repayment ability and could review the credit report as well with permission.
- The jewellery gets weighed and tested, and then the terms are provided in writing, which includes the relevant interest rate.
- The loan agreement is then signed, and disbursement takes place after verification and other formalities.
After full repayment, the pledged gold is generally released within seven working days. A delay caused by the lender attracts ₹5,000 a day under the directions.
IIFL Finance Support for Gold Loan Applicants
IIFL Finance may offer a gold loan of ₹6.9 lakh. This would depend on product availability, eligibility, the gold assessment and the regulations in force. Credit history and repayment capacity may be considered under internal policy.
As per the rules and lender policy, the money can be put towards legitimate needs like:
- Business expansion or operating costs, subject to applicable laws
- Higher education fees for a family member
- A major medical procedure
- Machinery for a small trade
The pledged gold stays in the borrower's ownership, provided the loan is repaid as agreed.
Conclusion
At ₹6,90,000, the gold loan sits above ₹5 lakh, where the 75% slab applies. A detailed credit assessment, including repayment capacity, is required, and bullet loans for personal use are capped at 12 months. PAN is generally required under KYC and tax rules, with Form 97 considered where there is no PAN. For is PAN card mandatory for 690000 rs loan, PAN supports the check while income and the gold carry the decision.
A gold loan is an avenue through which finances can be raised using eligible gold with ownership retained by the borrower. Valuations, disclosure and storage comply with applicable guidelines.
FAQs
Lenders generally ask for PAN during KYC. Form 97 may be considered where there is no PAN.
It depends on the lender. Form 97 may be considered, and the credit assessment still applies.
No. Different transactions carry different PAN rules under tax laws.
That form gave way to Form 97 from 1 April 2026. Its use depends on the lender's policy.
Disclaimer: This blog is general information and not an offer of a loan. Terms depend on RBI rules, KYC, the value of the gold, the borrower's assessment and IIFL Finance policy.
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