Video KYC and PAN Rules for a ₹4,00,000 Gold Loan
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More lenders now let applicants complete KYC on a video call before they visit a branch. For a working person, this saves a trip and some waiting time. The call still has its own checks, and PAN is right at the centre of them. Before starting, many applicants look up if pan card is mandatory for ₹400000 loan to know what to keep ready.
A gold loan is borrowing from a regulated lender against eligible gold ornaments kept as security. The amount is based on the assessed value of the gold. This blog explains how PAN is treated at ₹4 lakh and how video KYC works. It also covers what still happens at the branch, along with documents, valuation and the steps.
PAN for a ₹4 Lakh Gold Loan
This section explains how lenders look at PAN for this loan. PAN, the Permanent Account Number, is a ten-character alphanumeric identifier issued by the Income Tax Department. For a gold loan of ₹4,00,000, PAN is generally requested during KYC, though alternative documentation may be considered. KYC covers the identity checks a regulated lender completes before lending.
The answer to the search is pan card mandatory for ₹400000 loan therefore rests with lender policy. Many lenders ask for PAN at this size. Where a PAN is not held, some may consider Form 97, which took over from Form 60 in April 2026.
Credit History and the ₹2.5 Lakh Rule
Here the credit side of a ₹4 lakh loan is explained. The RBI (Lending Against Gold and Silver Collateral) Directions, 2025, implemented by regulated lenders from April 2026, set no minimum credit score. Lenders may still look at credit history under their policy.
As ₹4 lakh is above ₹2.5 lakh, the directions require a detailed credit assessment that includes repayment capacity. A person who types 400000 loan is pan card mandatory may find that income records matter as much as PAN at this amount.
How Video KYC Works
RBI's KYC rules permit a video-based process, called V-CIP or video KYC. This section explains it in simple steps.
What Happens on the Call
An official of the lender joins a live video call with the applicant, after taking consent. The official checks that the person is present in real time and takes a photograph. The call is recorded and kept as part of the KYC file.
Where PAN Fits In
During the call, the applicant generally shows the PAN card or an e-PAN, and the number is verified against official records. Aadhaar details may be verified too. For someone who searched is pan card compulsory for ₹400000 loan, the point to note is that PAN is checked live and not just collected.
The Gold Is Still Checked in Person
Video KYC covers identity only. The gold itself is weighed and tested by the lender's valuer at a branch. Under the directions, pledged gold is handled only at the lender's branches. The valuation certificate is prepared at that stage, with the applicant present.
Documents Required for a Gold Loan
Whether KYC is done by video or in person, a ₹4 lakh gold loan generally needs:
- PAN card or e-PAN, generally requested during KYC, though alternative documentation may be considered
- Aadhaar or another officially valid document
- Any income-related documents the lender may request for the repayment-capacity assessment
- A working phone or laptop with a camera, for video KYC
- The jewellery to be pledged, taken to the branch for valuation
A few more papers may be requested, based on the lender's policy and how the assessment goes. Applicants who search is pan card needed for a 400000 loan will notice that PAN is the item checked most closely on the call.
Eligibility and Valuation
Age, residency and ownership conditions are set by the regulations and the lender's policy. Under the KYC rules, the applicant generally has to be in India during the video call.
LTV, or loan-to-value, sets how much of the gold's value can be lent. Above ₹2.5 lakh and up to ₹5 lakh, the directions cap it at 80%. A ₹4 lakh loan falls in this band.
The valuation uses the lower of the previous day's close and the 30-day average, as published by IBJA or a SEBI-regulated exchange. The rate is adjusted for purity. Only the net gold content is priced.
Application Process
With video KYC, a ₹4 lakh gold loan generally goes ahead in this way.
- The applicant starts on a regulated lender's app or website and books a slot for video KYC.
- On the call, the identity, PAN and Aadhaar details are verified and recorded.
- The gold is then weighed and tested at the branch, with the applicant present.
- The lender completes the repayment-capacity check and shares the Key Fact Statement.
- The borrower accepts the terms, and disbursal follows once verification and the remaining formalities are complete.
After the loan has been repaid in full, the directions require the gold to be handed back within seven working days. If the lender delays this, it owes the borrower ₹5,000 for every day.
IIFL Finance Support for Gold Loan Applicants
IIFL Finance may offer a ₹4 lakh gold loan to an eligible applicant. This is linked to product availability, eligibility, the gold's assessment and the regulatory requirements that apply at the time. It may be of use to a working applicant who would like to finish KYC remotely, where this option is offered.
In keeping with the regulations and lender policy, the funds can be put to legitimate personal or business use, for instance:
- Stock for an online home-decor business
- A gap-year course fee for a child
- Physiotherapy and recovery after an operation
- A commercial oven for a cloud kitchen
The jewellery is pledged and not sold, so ownership generally stays with the borrower. It is returned once the loan is repaid under the agreed terms.
Conclusion
At ₹4 lakh, PAN is generally asked for, though other documents may be considered. That is why a search for is pan card mandatory for ₹400000 loan leads back to the lender's policy. Video KYC allows identity and PAN to be checked live on a recorded call. The gold, however, is still weighed and tested in person at the branch. A repayment-capacity check and the 80% LTV slab apply at this amount.
A gold loan may give access to money while the pledged ornaments remain the borrower's property. The valuation, disclosures and safe keeping of the gold follow applicable policies and regulations.
Frequently Asked Questions
Is PAN mandatory for loans?
Not for every loan. For a gold loan, many lenders respond to is pan card mandatory for ₹400000 loan by asking for PAN, while some may consider Form 97.
Can I get a loan without a PAN card and CIBIL?
A gold loan may allow this. There is no RBI minimum score, though a repayment-capacity check applies above ₹2.5 lakh.
Can I get a 4 lakh loan without income proof?
In most cases, no. Above ₹2.5 lakh, the directions require an assessment of repayment capacity, so some record of income is generally sought.
Is a PAN card mandatory for EMI?
No. PAN is checked at KYC, and the EMIs are then collected through the bank account or mandate.
Can Form 60 be used instead of a PAN card for a ₹4 Lakh loan?
Form 60 was replaced by Form 97 in April 2026. A lender may accept Form 97 under its policy, which is also the reply to is pan card required for a ₹400000 loan.
Disclaimer: This blog is for information only and is not an offer to lend. Loan terms depend on RBI rules, KYC requirements, the value of the gold, the borrower's assessment and IIFL Finance policy.
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
