How Much Loan Can You Get on 10 Grams of Gold? Here’s What RBI’s New Rule Says

Updated: 21-06-2025, 10.21 PM

Gold loans continue to be one of the most convenient options for borrowers needing quick access to funds — especially during emergencies. Now, with new changes introduced by the Reserve Bank of India (RBI), taking a gold loan is set to become even easier and more flexible for small borrowers.

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According to a report from S&P Global Ratings, the RBI has revised key rules for gold-backed consumption loans, giving lenders more freedom in how they structure short-term gold loans. Here’s what you need to know about the latest RBI guidelines and how much loan you can now get against 10 grams of gold.

RBI’s New Rule on Gold Loans

As per the updated framework:

For loans between ₹2.5 lakh and ₹5 lakh, lenders can now offer a loan amount of up to 80% of the gold’s value.
For loans exceeding ₹5 lakh, the loan-to-value (LTV) ratio will be capped at 75% of the gold’s current market price.

These revised guidelines are aimed at increasing access to credit for smaller borrowers and encouraging a wider adoption of gold loans. The new rules will be fully implemented by lenders — including banks and NBFCs — by April 1, 2026.

How Much Loan Can You Get on 10 Grams of Gold?

The loan amount you can avail on 10 grams of gold depends on several factors:

Purity of Gold: Most lenders consider 22-carat gold jewellery for loans.
Market Price: The loan amount is calculated based on the prevailing market price of gold on the day you apply.
Loan-to-Value (LTV) Ratio: With the new rules, you can now get up to 80% of the gold’s value if the loan amount falls under the ₹5 lakh limit.

For example, if the current market rate of 22-carat gold is ₹6,000 per gram, then the value of 10 grams will be ₹60,000. Based on the 80% LTV ratio, you would be eligible to borrow up to ₹48,000.

Banks vs NBFCs: Where Should You Take a Gold Loan?

You can choose between a bank or a non-banking financial company (NBFC) to take your gold loan:

NBFCs generally process gold loans faster but tend to charge higher interest rates.
Banks may take longer to process the application but often offer gold loans at lower interest rates.

If you need funds urgently, an NBFC may be the better option for quick processing. However, if you are looking for more affordable interest rates, opting for a bank loan could save you money in the long run.

Why Opt for a Gold Loan?

Compared to property loans, personal loans, or corporate loans, gold loans are often cheaper and easier to obtain. Since they are secured by your gold, lenders are able to offer relatively lower interest rates. Additionally, the documentation process is simple, and the loan is approved quickly.

Final Thoughts

With the RBI’s new guidelines, gold loans are now an even more attractive option for small borrowers. Whether you need funds for a medical emergency, education, or business, pledging your gold can provide you with the financial flexibility you need — without the hassle of lengthy loan processes.

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Kuldeep Singh Chundawat: My name is Kuldeep Singh Chundawat. I am an experienced content writer with several years of expertise in the field. Currently, I contribute to Daily Kiran, creating engaging and informative content across a variety of categories including technology, health, travel, education, and automobiles. My goal is to deliver accurate, insightful, and captivating information through my words to help readers stay informed and empowered.