PAN Card Rules for a ₹1,50,000 Loan Against Gold and Silver
Table of Contents
Many households keep silver anklets and coins alongside their gold jewellery. A borrower planning a gold loan of ₹1,50,000 may wonder whether the silver can be pledged too. Many such applicants search is pan card mandatory for ₹150000 loan while weighing their options. The answer depends on applicable regulatory requirements and the lender's KYC process.
This blog explains how the RBI directions treat gold and silver collateral, the limits for each metal and where the PAN fits. Documents, eligibility, valuation and the application steps follow.
Gold and Silver Under the Same Directions
The RBI (Lending Against Gold and Silver Collateral) Directions, 2025 were implemented by regulated lenders from April 2026. They cover loans against both gold and silver, and the same LTV slabs apply to both metals. LTV, or loan-to-value, is the share of the metal's value a lender can give as a loan.
Silver ornaments are generally capped at 10 kg per borrower, and eligible silver coins at 500 grams. Silver bars and silver-plated items are generally not eligible, and acceptance of items such as utensils depends on lender policy. Whether a lender offers loans against silver depends on its product range.
A search like 150000 loan is pan card mandatory relates to the KYC step for either metal.
Purity and Valuation for Each Metal
Each metal is valued at the published price for its actual purity. Where no price is published for that purity, the nearest available purity is used and the weight is adjusted in proportion. For silver, the reference is commonly 99.9 fine silver, where fineness of 1,000 would mean pure silver.
Silver ornaments are commonly accepted from around 800 to 925 fineness, subject to lender assessment. Silver coins are generally required at 925 fineness or higher.
PAN, the Permanent Account Number, is a ten-character alphanumeric identifier issued by the Income Tax Department. Regulated lenders may request PAN details as part of customer identification and verification requirements, subject to applicable regulations and lender policies. Alternative documentation may be considered in certain circumstances, subject to applicable regulations and lender policies.
For applicants asking is pan card mandatory for ₹150000 loan, the metal pledged generally does not change this KYC step.
Documents Required for a Gold Loan
Lenders commonly ask for the documents below.
|
Document |
Role |
|
PAN card |
Generally requested during KYC verification, subject to applicable regulations and lender policies |
|
Aadhaar, passport or voter ID |
Identity proof, and address proof where the current address is shown |
|
Recent photograph |
Part of the KYC, or Know Your Customer, record |
|
Gold or silver items |
Weighed and tested for purity |
Applicants asking is pan card needed for a 150000 loan may find the same KYC set generally applies for both metals. Where a PAN is not available, lenders may accept an alternative declaration or documentation in accordance with applicable laws and their internal policies. Additional documentation requirements, if any, depend on the lender's policies, loan amount and assessment requirements.
Eligibility and Valuation
Eligibility rests on the borrower and the metal pledged. Eligibility criteria, including age, residency and ownership-related requirements, are subject to applicable regulations and lender policies. The eligibility of pledged gold and ownership-related requirements are assessed in accordance with lender policies and applicable regulations.
For loans up to ₹2.5 lakh, simplified requirements may apply in certain cases; however, lenders may apply their own eligibility, KYC and risk-assessment procedures. Credit history may be considered by lenders in accordance with internal policies and applicable regulatory requirements.
Each metal is valued, for the purity found, at the lower of the previous day's closing price and the 30-day average, from IBJA or a SEBI-regulated exchange. Up to ₹2.5 lakh, the LTV ceiling is generally 85% for either metal.
Under the directions, the ₹2.5 lakh mark for credit assessment generally looks at gold and silver loans together. The query is pan card compulsory for ₹150000 loan concerns KYC only.
Application Process
Five steps generally apply.
- The applicant approaches a regulated lender that offers loans against the metal being pledged.
- KYC documents are submitted along with the gold or silver items.
- The lender's valuer weighs each item and tests its purity, in the applicant's presence.
- The lender may issue a written sanction or offer detailing the amount, applicable interest rate, tenure and charges.
- After signing, disbursal follows once verification and the remaining formalities are complete.
Under the directions, pledged gold or silver is generally returned within seven working days of full repayment of the loan and other dues. Where delay beyond the prescribed period is attributable to the lender, compensation provisions under applicable RBI directions may apply.
IIFL Finance Support for Gold Loan Applicants
IIFL Finance may offer a gold loan of ₹1,50,000, subject to product availability, borrower eligibility, collateral assessment and prevailing regulatory requirements. The product may suit a household that holds gold jewellery and needs a larger short-term sum. Interest rates and charges may differ across products and lenders based on operational, funding and risk-management considerations.
Subject to applicable regulatory requirements and lender policies, funds obtained through a gold loan may be used for various legitimate personal or business-related purposes:
- Working capital for a small dairy unit
- Semester fees for an engineering course
- Treatment costs after an accident
- Stock for a utensils shop before Diwali
Unlike a sale transaction, a loan against eligible gold collateral generally allows the borrower to retain ownership, subject to repayment and the lender's applicable terms and conditions.
Conclusion
Gold and silver loans fall under the same RBI directions, with the same LTV slabs but different caps and purity standards. Bars and plated items are generally not eligible, while items such as utensils depend on lender policy. For applicants asking is pan card mandatory for ₹150000 loan, the PAN generally forms part of KYC whichever metal is pledged.
For loans up to ₹2.5 lakh, the maximum permissible LTV is generally subject to the 85% regulatory ceiling applicable to eligible gold collateral. Lenders generally request PAN information as part of KYC verification, subject to applicable regulations and internal policies. The amount available under a gold loan is determined by collateral valuation and applicable LTV limits. A gold loan may provide access to funds against eligible collateral while allowing ownership of pledged gold to be retained. Valuation procedures, disclosures, and collateral handling are carried out in accordance with applicable policies and regulations.
Frequently Asked Questions
Is PAN mandatory for loans?
Lenders generally request a PAN during KYC verification. Where permitted under applicable regulations, alternative declarations or documentation may be considered. Requirements may vary depending on lender policies and borrower circumstances. The search is pan card mandatory for ₹150000 loan is answered by lender policy. The same KYC record may serve for gold and silver loans with one lender.
Can I get a 1.5 lakh loan without income proof?
For a gold loan, this may be possible, depending on lender policy. For loans up to ₹2.5 lakh, simplified requirements may apply in certain cases; however, lenders may apply their own eligibility, KYC and risk-assessment procedures. The amount still depends on the value of the pledged metal and the LTV limit. Income documents may be requested where the lender's assessment calls for them.
What do I need to get a 150k loan?
For a gold loan of this size, the usual set is short. It commonly includes a PAN card, an identity document such as Aadhaar, address proof, a photograph and the gold itself. Additional documentation requirements, if any, depend on the lender's policies, loan amount and assessment requirements. Bank statements may be requested, depending on lender policy.
Is a PAN card mandatory for EMI?
The EMI does not settle this. An EMI is a fixed monthly instalment of interest and principal. Lenders generally request a PAN during KYC verification. Alternative documentation may be considered in certain circumstances, subject to applicable regulations and lender policies. The query is pan card required for a ₹150000 loan has the same lender-led answer.
Disclaimer: Gold loan eligibility, sanctioned amount, interest rate, charges, LTV, tenure and disbursal are subject to applicable RBI requirements, KYC requirements, collateral valuation, borrower assessment, the scheme selected and IIFL Finance policy. Nothing here is an offer, commitment or assurance of sanction. The sanction documentation and Key Facts Statement govern borrower-specific terms.
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
