Aadhaar KYC, the 1 kg Cap and a ₹10,00,000 Gold Loan

Families planning a big expense, such as a wedding or a business expansion, sometimes turn to the gold they have built up over the years. ₹10 lakh is a much larger request than the small loans commonly advertised on Aadhaar. The checks also change as the amount goes up.

A gold loan is a loan against gold jewellery, which a regulated lender keeps until the loan is repaid. This blog explains a ₹1000000 aadhaar loan and what Aadhaar does at this size. It covers the credit assessment and the limits on how much gold can be pledged. The documents, valuation and steps to apply come after that.

Aadhaar at ₹10 Lakh

Aadhaar confirms identity and address during KYC, the lender's customer identity check. Under the RBI's KYC rules, an account opened only through OTP-based e-KYC can carry term loans of up to ₹60,000 in a year. ₹10 lakh is far above that.

For this reason, KYC at this level is commonly done at the branch, through biometrics or by video. A person asking can I get ₹1000000 loan on aadhaar card is looking at a fuller file. Aadhaar is only one part of it.

Credit Check at ₹10,00,000

The RBI (Lending Against Gold and Silver Collateral) Directions, 2025, implemented by regulated lenders from April 2026, do not fix a minimum credit score. The lender may look at credit history as per its own policy.

Once total gold and silver loans go above ₹2.5 lakh, a detailed credit assessment covering repayment capacity is required. A ₹1000000 aadhaar loan is well past that point. Income records are likely to be asked for, and PAN is generally needed at this size.

Limits on Pledged Gold

The 1 kg Ornament Cap

The directions cap the gold ornaments pledged by one borrower at 1 kg in total. This is counted across the borrower's gold loans with that lender. Small loans rarely come near it, but larger ones can.

Coins and Other Items

Gold coins are capped at 50 grams per borrower, and lenders commonly accept coins of 22 carat or higher. Bars, bullion, gold ETFs and digital gold are not taken as security. Under the September 2025 amendment, a loan for buying gold in any form is generally not allowed either.

The 75% Slab

LTV, or loan-to-value, is the share of the gold's value that may be lent. It is 85% up to ₹2.5 lakh, 80% up to ₹5 lakh and 75% above that. A ₹1000000 aadhar loan therefore comes under the 75% limit.

Documents Required for a ₹10,00,000 Gold Loan

A ₹1000000 aadhaar card loan against gold generally needs the following.

• Aadhaar, or another officially valid document
• PAN card, generally required for a loan of this size under KYC, tax and regulatory requirements
• Salary slips, bank statements or ITR for the repayment review
• Bank account details in the borrower's name
• The gold ornaments

Ownership records or a declaration on the jewellery may be sought where the lender's procedures call for it. Other papers depend on the lender's policy, the loan amount and the assessment.

Eligibility and Valuation

Age, residency and ownership conditions are set by the applicable rules and the lender's policy. At this amount, repayment capacity is also part of the decision.

The gold is priced at the lower of the previous day's close and the 30-day average, as published by IBJA or a SEBI-regulated exchange. The rate used is for the purity found on testing, and only net gold counts. For a ₹1000000 loan on aadhaar card, the gold needed changes with the price, the purity and the deductions on the day.

Interest rates and charges are decided by each lender and may vary by product.

Application Process

1. The applicant starts with a regulated lender at a branch or online.
2. KYC is done in person, by video or through biometrics, with Aadhaar and PAN.
3. Income records and the credit report are reviewed with the applicant's consent.
4. The ornaments are weighed and tested with the applicant present, and the amount, rate, tenure and charges are shared in writing.
5. The agreement is signed, and disbursal follows once verification and the remaining formalities are complete.

If approved, the money goes to the borrower's own bank account as per the lender's procedures. The pledged gold is generally released within seven working days of full repayment. Under the directions, a delay caused by the lender attracts ₹5,000 a day.

IIFL Finance Support for Gold Loan Applicants

IIFL Finance may extend a gold loan of ₹10 lakh. This would depend on product availability, the borrower's eligibility, the assessment of the gold and the regulatory requirements of the time. At this amount, the repayment review and the gold valuation are generally completed before the terms are shared in writing.

As per lender policy and the rules, the money can be used for legitimate needs such as:

• Working capital for a wholesale trading business
• Wedding expenses for a family member
• Fees for a postgraduate course
• New machinery for a small workshop

The borrower generally remains the owner of the pledged gold, as long as the loan is repaid as agreed.

Conclusion

At ₹10 lakh, Aadhaar still settles identity, but KYC generally goes beyond an OTP. A detailed credit assessment applies above ₹2.5 lakh, and PAN is generally needed at this size. The directions cap pledged ornaments at 1 kg and coins at 50 grams per borrower. Above ₹5 lakh, the 75% slab sets the limit. A ₹1000000 aadhaar loan therefore depends on the gold and the borrower's repayment capacity together.

A gold loan can help in raising funds against eligible gold, with ownership left with the borrower. Valuation, disclosures and custody of the gold follow the applicable policies and regulations.

Disclaimer : The information in this blog is for general purposes only and may change without notice. It does not constitute legal, tax, or financial advice. Readers should seek professional guidance and make decisions at their own discretion. IIFL Finance is not liable for any reliance on this content. Read more