What is the period of gold loan?

The tenure of a gold loan is generally shorter than other types of secured loans. As per the latest RBI draft guidelines, the maximum tenure for gold loans, including those with monthly instalments or bullet repayment, is capped at 12 months. This is a change from earlier norms, where some lenders offered tenures of up to 36 months. The shorter tenure is intended to reduce the risk of defaults and ensure timely repayment. Borrowers must repay the entire outstanding amount, including principal and interest, within this period. Some lenders may offer the option to renew the loan by paying the interest due and completing fresh documentation, but this is subject to the loan remaining within the permitted LTV ratio and other eligibility criteria. Always confirm the exact tenure and renewal process with your lender before taking a gold loan.