Gold Loan Interest Rates Compared: Banks vs NBFCs in 2026
Sep 29, 2026 | 4 mins read
Welcome!
neha chavan
Welcome!
neha chavan
A gold loan is a secured loan where you pledge eligible gold jewellery as collateral to borrow funds. Since the loan is backed by gold, the application process may be simpler than that of some unsecured loans. However, we still need to complete your Know Your Customer (KYC), identity, address, and other required checks before approving the loan.
Knowing the documents required for gold loan applications in advance can help you complete the process smoothly and avoid unnecessary delays. The exact documentation may vary depending on the loan amount, customer profile, and applicable regulatory requirements.
The gold loan required documents generally include valid KYC and any additional information we need to process the application. Depending on the application and requirements, you may need:
We will also examine the gold being offered as collateral. Gold valuation and verification are part of the lending process, so applicants should bring the jewellery intended to be pledged.
RBI's KYC framework requires regulated entities to obtain officially valid identity documents and PAN or Form 60, along with other information where necessary based on the customer's circumstances.
The required documents for gold loan applications can differ based on the applicant's profile. A typical gold loan documents list may include:
| Document | Purpose |
|---|---|
| Aadhaar card or other valid KYC document | Identity and address verification |
| PAN card/Form 60, where applicable | Financial and tax-related identification |
| Passport-size photograph | Customer identification |
| Bank account details | Loan disbursement and repayment-related requirements |
| Additional documents, if requested | Profile, address, ownership or other verification |
Not every applicant will need to submit every document listed above. We may request additional information depending on the application.
Salaried applicants generally need to provide standard KYC documents. In some cases, we may request additional information relating to employment or income, depending on its credit assessment and loan requirements.
A salary slip or salary certificate may be requested in specific cases, but gold loans are primarily secured against eligible gold jewellery. Therefore, income documentation requirements may differ from those for an unsecured personal loan.
Self-employed applicants should keep their KYC documents ready along with any additional financial or business information that we may require. Depending on the application, this may include documents relating to the nature of the business or financial status.
The exact requirements can vary based on the loan policies and the applicant's circumstances.
Existing customers may have a simpler documentation process if their KYC information is already available and valid with us. However, they may still need to provide updated documents or complete additional verification if required.
Customers should not assume that previously submitted documents will automatically be sufficient for every new loan application.
Before applying, check that your KYC documents are valid, legible, and contain consistent personal details. Keep your PAN and an accepted identity/address document readily available.
You should also have the bank account details required for disbursement. If we ask for additional documents based on the application, submitting them promptly can help avoid delays.
The gold itself is an important part of the application. We will assess the jewellery's purity, weight, and eligible value before determining the loan amount. RBI regulations require NBFCs lending against gold jewellery to have appropriate procedures for customer due diligence, gold assaying, and ownership verification.
The method of submitting documents for gold loan applications depends on the application channel. You may be able to provide documents through an online application or at a branch, depending on the available process.
For an online application, you may be asked to enter your details and upload or provide eligible documents electronically. Original documents or additional verification may still be required during the subsequent stages.
For a branch application, carry the required original documents along with copies if requested. We can verify the documents and complete the KYC process before proceeding with the gold valuation.
You can also apply for a gold loan and submit your documents digitally through the Planet App by L&T Finance, which is designed to simplify the online application experience.
Start by checking the eligibility criteria, loan terms, and the type of gold accepted as collateral. Make sure you have the required KYC documents before submitting the application.
Complete the application form with accurate personal and contact details. Submit the required KYC documents and any additional documents requested by our team.
The pledged gold jewellery is examined to determine its purity, weight, and eligible value. We also carry out the required customer and ownership verification. RBI guidelines require NBFCs to maintain systems for verifying ownership of gold jewellery and conducting proper assaying procedures.
Once the required checks are completed and the application meets our criteria, the loan can be approved. The approved amount is then disbursed according to the process and applicable terms.
Documentation issues can slow down the gold loan application process. Common reasons include:
Review your documents before submitting them and provide accurate information throughout the application.
A little preparation can make the application process easier. Keep your original KYC documents available and check that the information on them is current. Carry copies where required and ensure that scanned documents are clear if you are applying through an online channel.
It is also useful to keep your bank account details ready and understand our documentation requirements before beginning the application. If you are unsure whether a particular document is acceptable, check with our team rather than submitting an unsuitable document.
