Can I surrender my gold loan?

Yes, you can surrender your gold loan at any point by repaying the entire outstanding principal along with any accrued interest. Once you have cleared all dues, the lender will return your pledged gold ornaments to you. This process is straightforward and gives you the flexibility to close your loan before the end of the agreed tenure if your financial situation allows.

Here’s what typically happens:

• You visit the lender’s branch, settle the outstanding amount, and complete any required formalities.
• The lender will then release your gold, usually within a few days, as per the latest RBI guidelines. In fact, as of May 2025, lenders are required to return the gold within seven working days of full repayment, and any delay beyond this period may result in compensation to you.
• Always ensure you collect a no-dues certificate or loan closure statement for your records.

If, however, you find yourself unable to repay the loan, you can voluntarily surrender the gold to the lender. In such cases, the lender may proceed to auction your gold to recover the outstanding dues. If the auction fetches more than what you owe, the surplus will be returned to you or your legal heirs after settling all charges and dues.

Surrendering your gold loan responsibly—either through repayment or voluntary surrender—helps you maintain a good relationship with the lender and protects your financial interests. Always keep all documentation related to the loan closure or surrender for future reference.