Can I Get a Silver Loan Without a PAN Card?

Yes, in many situations, obtaining a silver loan without a PAN card may be possible. KYC regulations generally permit the use of Form 60 in situations where an applicant does not possess a PAN, subject to applicable regulations and lender policies.

Because a silver loan is a secured loan backed by eligible silver collateral, the focus of the assessment is often the pledged silver as well as compliance with KYC requirements. However, documentation requirements may vary based on the loan amount, regulatory obligations, and the lender's internal policies.

This guide explains whether a PAN card is mandatory, what documents may be accepted instead, the role of Form 60, how Aadhaar-based KYC works, and how loan eligibility is determined.

Is PAN Card Mandatory for a Silver Loan?

For a silver loan, PAN is commonly requested as part of customer identification and regulatory compliance processes.

Individuals who do not possess a PAN may, in certain circumstances, be permitted to provide Form 60, subject to applicable laws, KYC requirements, anti-money laundering obligations, transaction characteristics, and lender policies.

Under the Reserve Bank of India (Lending Against Gold and Silver Collateral) Directions, 2025, lenders are required to comply with customer due diligence and other regulatory obligations while assessing loans against eligible collateral.

Accordingly, the availability of a silver loan without a PAN card depends on the lender's compliance requirements, documentation standards, and applicable regulations.

Minimum Documents for a Silver Loan by Lender Type

Documentation requirements for a silver loan may vary across banks, NBFCs, and other regulated institutions depending on customer due diligence requirements, collateral assessment procedures, and internal policies.

Note: Documentation requirements may vary depending on the lender, collateral assessment, loan amount, customer profile, and prevailing regulatory requirements.

One reason a silver loan without a PAN card may remain feasible is that the pledged silver serves as the primary collateral, reducing reliance on extensive income documentation in certain situations.

How to Apply for a Silver Loan Using Aadhaar

Applicants seeking a silver loan without a PAN card may benefit from confirming documentation requirements before visiting a branch.

A typical process may involve:

Step 1: Confirm KYC Requirements

Before applying, verify whether the lender accepts Form 60 in place of PAN for the proposed loan amount and customer profile.

Step 2: Collect Eligible Silver Collateral

Gather eligible silver ornaments or qualifying silver coins and estimate their approximate weight.

Step 3: Prepare KYC Documents

Depending on lender requirements, the application file may include:

• Aadhaar card.
• Passport-size photograph.
• Form 60 (where PAN is unavailable).
• Other documents required under KYC norms.

Step 4: Submit the Application

Applications may be submitted at a branch or through available digital channels, depending on the lender's processes.

Step 5: Silver Valuation

The lender normally conducts:

• Weight verification.
• Purity assessment.
• Valuation of net silver content.

A valuation report or certificate is generally prepared as part of this process.

Step 6: Loan Assessment and Disbursement

Following verification and completion of required formalities, the lender assesses eligibility and processes the loan in accordance with applicable policies.

Whether Aadhaar alone is sufficient depends entirely on the lender's KYC framework and regulatory obligations.

How Much Can Be Borrowed Without a PAN Card?

Loan eligibility is determined primarily by:

• Purity of the silver.
• Net silver content.
• Applicable loan-to-value (LTV)
• Regulatory requirements.
• Lender assessment criteria.

Under the RBI (Lending Against Gold and Silver Collateral) Directions, 2025, eligible collateral is assessed using prescribed valuation methodologies, and tiered loan-to-value (LTV) limits apply based on loan size.

Illustrative Example

Assume:

• Silver ornament weight: 100 grams
• Purity: 925 fineness
• Net silver content: 92.5 grams
• Assessed silver value determined by the lender in accordance with its valuation methodology

The eligible loan amount may be calculated by applying the lender's applicable loan-to-value (LTV) ratio to the assessed collateral value, subject to regulatory requirements and internal lending policies.

Note: The actual amount sanctioned, if any, depends on the lender's assessment, collateral valuation, applicable loan-to-value (LTV) limits, and prevailing regulations.

Understanding Form 60 for Silver Loan Applications

Form 60 is a declaration that may be used by eligible individuals who do not possess a PAN in situations where quoting PAN is otherwise required and where the applicable legal framework permits such declaration. Acceptance of Form 60 remains subject to regulatory requirements and the lender's internal compliance policies

• Applicable legal requirements.
• Internal compliance policies.
• Transaction size thresholds.
• Customer due diligence obligations.

Because requirements differ across institutions, borrowers may find it useful to confirm whether Form 60 is acceptable before initiating a silver loan application.

Conclusion

Obtaining a silver loan without a PAN card may be possible in many circumstances because KYC regulations provide alternative documentation routes such as Form 60, subject to lender policies and regulatory requirements.

The key factors that generally determine eligibility are:

• Ownership of eligible silver collateral.
• Purity and valuation of the silver.
• Compliance with KYC requirements.
• Applicable loan-to-value (LTV)
• Lender assessment criteria.

Confirming documentation requirements prior to applying may help ensure that the application process is efficient and that all required records are available at the time of valuation. As with any collateral-backed borrowing, valuation procedures, disclosures, documentation standards, and collateral handling practices are subject to applicable regulations and lender policies.

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