If you're an NRI living abroad and wondering whether you can use your gold back home to raise funds, you're not alone. Many NRIs have family jewellery inside lockers in India, and when a financial need arises, whether it is for property, education, or emergencies—it’s tempting to utilise that gold. But can you actually get a gold loan as an NRI?

Let’s walk through the process together, step by step by understanding all about Gold Loan Eligibility for NRI.

Can NRIs Apply for Gold Loans in India?

Yes, NRIs can infact apply for Gold Loans in India. While most banks and NBFCs don’t allow NRIs to pledge gold that is overseas. The gold must be physically available in India, and the loan is typically processed through a relative already living in India or a reliable representative.

Let us take Rajiv’s example. He works in Dubai but his parents live in Coimbatore. When he needed ₹3 lakh for his daughter’s school admission, he asked his father to pledge family jewellery on his behalf. The loan was sanctioned in his father’s name, but Rajiv handled the repayments.

Feeling helpless because you live abroad? You’ll need someone in India to act on your behalf, and that’s where documentation becomes very important.

NRI KYC and Documentation: What Do You Need?

Are you wondering about the Gold Loan Eligibility for NRI and what paperwork you will require

Suppose you have opted to take the loan under your name. In that case, you will need to produce the following documents: a valid Indian passport or OCI card, overseas address proof (this can be a utility bill or bank statement), PAN card, recent passport-sized photographs, and a resident co-applicant or power of attorney holder.

If your relative is applying on your behalf, their KYC will be required instead. Some lenders insist on notarised documents or embassy attestation, especially for high-value loans.

Real tip scenario: Rajiv had to courier his signed POA and passport copy to his father, who then submitted it to the lender. It took a week longer than expected—so plan ahead.

NRI vs Resident Gold Loan: What’s the Difference?

Are you interested to know how NRI gold loans are different as compared to resident gold loans?

• Processing time: NRI loans many times take longer, this is because of extra documentation.
• Loan structure: Some lenders prefer to issue the loan in the resident’s name.
• Repayment flexibility: NRIs may have to deal with restrictions on repayment from overseas accounts, unless these are routed through NRE/NRO accounts.

Let us take the example of Priya who lives in London. She wants to pledge ₹6 lakh worth of gold. Her brother in Pune applies for the loan. The lender offers ₹4.5 lakh (75% LTV), but the loan is in his name. Priya sends money every month to her brother's account for EMI payments.

The hassle here? You might not have full control over the loan unless you’re physically present or have a strong legal arrangement.

How Much Can You Borrow? RBI’s LTV Rules In Detail

Are you interested to learn about how much money you can really get?

So if your gold is worth ₹4 lakh, the maximum loan you can get is ₹3.2 lakh (80%). If it’s worth ₹6 lakh, you’ll get ₹4.5 lakh (75%).

Do you want to do a quick calculation? Multiply your gold’s value by the LTV ratio based on the slab. That’s your upper limit.

What Are the Benefits of Gold Loans for NRIs?

Are you thinking about why Gold Loans are a smart move if you’re an NRI?

• No need to sell your gold: You will get cash without losing ownership of your precious metal.
• Fast disbursal: If you have your documents ready, your loan will be processed quickly.
• Manageable tenures: Choose between 3 months to 3 years.
• Reasonable interest rates: Many times gold loan interest rates are cheaper when you compare it to personal loans or credit cards.

Let us consider a real life scenario. Let us take Meera as an example. She is an NRI based in Singapore. She needed ₹2 lakh for sudden home repairs. Her mother invested gold worth ₹2.5 lakh and got ₹2.1 lakh (85% LTV). The loan was cleared very quickly.

Our pro tip: If you’ve got idle gold in India, it’s better to use it than let it gather dust.

Final Thoughts Before You Apply

Still wondering if it’s worth the effort?

Here are some tips we want to suggest to you:

• Have a conversation with your family based in India. Choose someone trustworthy to help you.
• Have your documents ready—especially your POA and KYC.
• Research on multiple lenders. Ask all of them about terms specifically benefiting NRIs.
• Be clear about the risks that will be involved, especially if the loan isn’t taken under your name.

Conclusion

Gold loans for NRIs aren’t as simple as resident loans. However, they’re easy to get with the correct planning. When you require funds urgently, they can be a real help.

Shriram Finance offers gold loans with interest rates starting from 10% p.a. Shriram Finance also provides fast disbursal, easy to management repayment tenures, less documentation, and safe handling of your pledged gold.

FAQs

Can NRIs apply for gold loans remotely?

NRIs would need a co-applicant or power of attorney holder in India to complete all the loan formalities and processes that are in place. They cannot directly apply for loans, especially if they are living in a remote location.

Are there restrictions on loan tenure for NRIs?

Yes, there are restrictions on loan tenures for NRIs. Many lenders offer short tenures that range from a few months up to one year for NRI gold loans.

Do NRIs need to be physically present in India to pledge gold?

No, but the gold must be physically present in India and pledged by a resident co-applicant or authorised representative.

What documents do NRIs need to submit?

NRIs will need to submit the following documents: a valid passport, PAN card, overseas address proof, recent photos, and possibly employment or tax documents.

Are NRI gold loans offered by all major banks?

Not all banks offer them. The availability is varied. Some lenders would choose to issue the loans through resident co-applicants.

Is the interest rate higher or lower for NRI gold loans?

Interest rates typically start around 9% p.a. These are similar to resident loans, however may vary depending on the tenure and lender's rules.

Can NRIs authorise a family member to apply on their behalf?

Yes, NRIs can authorise family members to apply on their behalf. This is done via legally attested Power of Attorney. A reliable relative can then handle the loan formalities fully in India.

How is the loan amount transferred to an NRI’s account?

The amount is usually credited to an Indian bank account, often in the co-applicant’s name, and can be routed to NRE/NRO accounts if needed.