If you've never pledged gold before, the process may feel unfamiliar. But for most borrowers, it's simpler and faster than any other loan type. Gold loans are among the fastest credit products in India precisely because the lender's decision is built around your gold (its purity and weight).

Since it is not dependent on your income, your credit score, or your job profile, it means approval decisions are made faster than other loan products, and funds typically reach your account the same day.

Key Highlights

• Typically, a gold loan is disbursed the same day you visit the lender’s branch — sometimes within a few hours of arrival.

• The Key Fact Statement (KFS) is a mandatory RBI document you sign before disbursal — it sets out your interest rate, fees, repayment schedule, and all charges in plain language. No funds are released before this step.

• The Loan-to-Value (LTV) ratio determines how much you can actually borrow — lenders apply an RBI-prescribed LTV percentage to your gold's assessed market value to arrive at the eligible loan amount.

• Once the loan is fully repaid, your gold is returned to you at the branch on the same day, in the same sealed condition it was stored in.

Step 1: Register Online or Walk into a Branch

You can start the process from your phone. Visit the lender’s website, enter your mobile number, and a loan executive will call you to guide you through the next steps. The online registration is just the first touchpoint. It requires you to follow up with a branch visit, because your gold needs to be assessed in person.

You may also go directly to your nearest branch with your gold jewellery and identity documents. Either way, the branch visit is where the real process begins.

Step 2: Gold Assessment

This is the most important step as it needs to be done with full transparency.

A trained appraiser at the branch will examine your gold jewellery in your presence. The assessment covers two things: purity (the karat value of your gold, tested using standard methods like acid testing) and net weight (the actual gold content after deducting the weight of stones, clasps, and non-gold attachments).

Valuation follows the Reserve Bank of India (RBI) guidelines on gold loan pricing — the loan amount is based on the gold's assessed purity and the prevailing market rate for gold. You see the process, and you get a valuation certificate.

Typically, only gold jewellery and ornaments between 18K and 22K purity are accepted. Gemstones and diamonds set into the jewellery are not counted in the valuation.

Step 3: Loan Offer and Loan-to-Value Ratio

Once the gold is assessed, the lender applies a Loan-to-Value (LTV) ratio to determine how much you can borrow. With Shriram Gold Loan, you can borrow up to 80%* of your gold's assessed market value.

At this stage, you'll also be presented with the applicable interest rate and your repayment options. You choose the loan amount, tenure (typically between 1 and 12 months), and repayment structure that works for you. There is no obligation until you accept.

Note: The Reserve Bank of India (RBI) has introduced a revised LTV framework for gold loanseffective April 1, 2026. Shriram Finance is currently offering an LTV of up to 80% of the assessed gold value.*

Wondering how much you could borrow against your gold? Check the Shriram Gold Loan Eligibility Calculator — enter your gold's weight and purity to get an instant estimate.

Step 4: Document Verification (KYC)

The documentation for a gold loan is minimal by design. Typically, documents needed are for KYC verification. They include:

• Identity proof (any one): Aadhaar card, passport, driver's licence, voter ID, or Permanent Account Number (PAN) card. If you don't have a PAN card, Form 60 is accepted

• Address proof (any one): Aadhaar card, passport, driver's licence, voter ID, gas connection card, water bill, electricity bill, or prepaid mobile bill

Verification is usually quick because the lender isn't assessing your financial history. Your gold jewellery is the collateral, and its value has already been established in Step 2.

Step 4A: Key Fact Statement (KFS) Acknowledgement

Before funds are credited, you'll sign or acknowledge the Key Fact Statement (KFS) — a mandatory document under RBI guidelines that sets out your interest rate, processing fees, repayment schedule, and all applicable charges in plain language. This step was introduced to ensure that every borrower has a clear, written summary of the loan terms before they commit. It is recommended that you read it carefully as it is the definitive record of all the terms and conditions you have agreed to.

Step 5: Gold Loan Disbursal

Once KYC verification is complete and you've accepted the loan offer, the funds are credited directly to your bank account. For most borrowers, this happens the same day.

During the course of the loan, your gold jewellery is sealed and stored in a secure vault at the branch. Periodic audits are conducted, and you'll be notified if anything comes up. You retrieve your gold intact once the loan is fully repaid.

Your Gold Loan Repayment Options

Once the loan is disbursed, your repayment schedule begins based on the option you chose at disbursal. Shriram Gold Loan offers the following structures:

• Regular EMI: You pay equal monthly instalments that cover both principal and interest throughout the tenure. This is the most predictable option and suits borrowers with steady monthly income.

• Interest-only EMI: You pay only the interest component each month and repay the full principal at the end of the tenure. This keeps monthly outgo lower during the loan period and suits borrowers who expect a lump-sum inflow at maturity.

• Bullet repayment: You pay the full principal and accrued interest in a single payment at the end of the tenure. Suited if you expect a one-time inflow — a receivable, a harvest income, or a maturity payout — aligned with the loan end date.

• Partial payments: You make irregular payments toward principal and interest as and when funds are available, without a fixed schedule. This works well for borrowers with uneven income cycles, such as traders or seasonal workers.

For a detailed comparison of these options, see Shriram Finance's guide to gold loan repayment methods.

When and How to Foreclose Your Gold Loan Early

When you repay your gold loan in full, (whether at the end of tenure or earlier), your gold jewellery is returned to you at the branch on the same day, in the same sealed condition it was stored in. Retain the custody receipt you received at the time of pledging; it is the document against which your gold is released.

• Shriram Gold Loan allows foreclosure any time with zero foreclosure charges. Pay the outstanding principal and accrued interest, and your gold is released immediately.

• If your finances improve mid-tenure and you want your jewellery back, that option is open to you.

If you're approaching the end of tenure and cannot repay the full amount, a gold loan renewal is available. The gold is revalued at current market rates, and a fresh tenure is sanctioned based on updated eligibility. For the full renewal process, see Everything You Need to Know About Gold Loan Renewal.

Ready to apply? Start your Shriram Gold Loan application online. All you have to do is register your number and a loan executive will call you to take your application further.

FAQs

How long does the gold loan disbursal process take?

In most cases, the entire process — gold assessment, document verification, and disbursal — is completed on the same day you visit the branch. Some borrowers receive funds within a few hours of arriving.

Do I need to visit the branch even if I apply online?

Yes. The online application registers your interest and initiates a call from a loan executive. You still need to visit a branch once — to submit your gold for assessment and complete KYC verification.

What documents are needed for a Shriram Gold Loan?

You need one valid identity proof (Aadhaar, PAN, passport, voter ID, or driver's licence) and one address proof from the same list. No income proof or salary documents are required.

Can I take a gold loan if I don't have a credit score?

Yes. Typically gold loans do not require a Credit Information Bureau (India) Limited (CIBIL) score or any income proof. Eligibility is based entirely on the value of the gold you pledge.

What is the minimum and maximum loan amount?

The minimum and maximum loan amounts vary per lender. Shriram Gold Loan is available from ₹5,000 up to ₹40,00,000 (₹40 lakhs), depending on the quantity and purity of gold you pledge.