Form 97, PAN and the Paperwork for a ₹7,75,000 Gold Loan
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A farmer whose income comes only from crops may have managed for decades without a PAN card. The family now wants ₹7,75,000 against its gold to repair a borewell and buy a pump. A neighbour mentions a form that can be given in place of PAN. The question that follows is a simple one: is pan card mandatory for ₹775000 loan.
Gold loan involves depositing gold ornaments with the lender and receiving them back upon repayment of the loan. This blog explains how PAN is handled at this amount. It then looks at Form 97, the declaration that replaced Form 60, and how lenders treat it. After that come the documents, valuation rules, application steps and FAQs.
PAN and KYC for a Gold Loan of ₹7,75,000
KYC is the customer identity check that lenders run before any loan. Under the RBI Master Direction on KYC, lenders collect the PAN, or a declaration from a person who has no PAN. Then the PAN is authenticated using the data available with the Income Tax Department.
Since the figure in question is ₹7,75,000, which is greater than ₹5 lakh, it would be appropriate to have a PAN card for such a loan. Thus, for anyone asking is pan card mandatory for ₹775000 loan, lenders will commonly ask for it, though the final decision rests on lender policy.
PAN in the Credit Assessment
For larger loans, PAN does a second job. Directions of the RBI relating to lending against gold and silver collateral 2025 came into force for regulated financial institutions from April 2026. The requirement for credit appraisal above ₹2.5 lakhs of total gold and silver lending is repayment capability.
The records of the credit bureaus have PAN linked to them, so the bank would use it for getting the credit report with consent. No minimum score is specified by the instructions, and the bank can take into account credit history. People searching is pan card needed for a 775000 loan are often asking about this link as well.
Form 97 in Plain Terms
Form 97 is an income-tax form and not a form of the lender. It has a narrower role than the old Form 60 had.
The Change From Form 60
Under the Income-tax Rules, 2026, Form 97 replaced Form 60 with effect from April 2026. It is meant for individuals who do not have a PAN but enter into certain financial transactions. The entity receiving the form reports the transaction to the Income Tax Department.
Details Recorded on the Form
The form records basic details such as the name and address of the person and the nature of the transaction. A lender may ask for an identity document along with it. Its scope is narrower than that of Form 60, especially for high-value transactions.
Form 97 at a Larger Loan Amount
Whether Form 97 is accepted for a loan above ₹5 lakh depends on the lender. Many lenders may not accept it in place of a PAN at this size. For readers asking 775000 loan is pan card mandatory, an application for a PAN is often the simpler path.
Documents Required
The documents generally requested at this amount are listed here.
- PAN card, generally required for a loan of this size in accordance with applicable KYC, tax and regulatory requirements
- Form 97, only where the lender's policy allows it
- Aadhaar or another officially valid document for identity and address
- Any income-related documents the lender may request for the repayment-capacity assessment, such as land records, crop sale receipts or bank statements
- Bank account details for the disbursal
A declaration on ownership of the gold may be requested. Further papers depend on the checks of the lender.
Eligibility and Valuation
Lenders generally consider resident adults who own eligible gold ornaments, with age limits set by each lender. These conditions are subject to the regulations and lender policy.
When the loan is above ₹5 lakh, it may not exceed 75% of the gold's assessed value. This ratio is known as loan-to-value, or LTV. The answer to is pan card compulsory for ₹775000 loan has no effect on this ratio.
The assessed value uses the lower of two prices, the previous day's close and the 30-day average. These figures come from IBJA or a SEBI-regulated exchange. The rate is adjusted for purity, and only net gold is counted after stones and other parts are deducted.
Application Process
A person searching is pan card required for a ₹775000 loan will see PAN come up at the second step of the usual order.
- The applicant goes to a regulated lender with the gold and identity documents.
- KYC is completed, and the PAN is verified with income-tax records.
- Repayment capacity is assessed, using the credit report where lender policy provides.
- A purity check and weighing take place in the applicant's presence, followed by the Key Facts Statement.
- The agreement is signed, and disbursal follows once verification and the remaining formalities are complete.
Once the loan is repaid in full, the gold needs to be released within seven working days as per the directions. If the lender is late, ₹5,000 is payable for each day of delay.
IIFL Finance Support for Gold Loan Applicants
IIFL Finance may offer a gold loan of ₹7.75 lakh to an eligible applicant. This is subject to product availability, the gold's valuation and the regulatory requirements of the time. It may be relevant to farming households and others who hold eligible jewellery and a valid PAN.
Where the rules and lender policy allow, the money may be put to legitimate use, for example:
- Borewell repair and an irrigation pump
- A tractor overhaul before sowing
- Higher studies for a family member
- Hospital care after an accident
As the gold is held only as security, the family generally keeps ownership of it. The ornaments are given back after the loan is repaid as agreed.
Conclusion
In a ₹7,75,000 gold loan, PAN completes KYC and also links the applicant to a credit report. For anyone asking is pan card mandatory for ₹775000 loan, a PAN is generally required at this size. Form 97, which replaced Form 60 from April 2026, is meant for people without a PAN. Its scope is narrower, and its acceptance above ₹5 lakh depends on the lender. The amount that can be borrowed is still based on the net value of the gold and the 75% cap.
A gold loan may let a family raise funds and still retain ownership of the jewellery. Valuation, disclosures and the handling of the gold are taken care of under the applicable policies and regulations.
Frequently Asked Questions
Is a PAN card mandatory for a loan?
It depends on the amount and the lender. For a gold loan above ₹5 lakh, a PAN is generally required, while smaller loans may allow other documents.
Can I take a loan without a PAN card?
At this size, it is unlikely. For those asking is pan card mandatory for ₹775000 loan, the acceptance of Form 97 rests with the lender, and many prefer a PAN.
Is a PAN card required for transactions exceeding ₹50,000?
Not for every transaction. The income-tax rules list the specific transactions that need a PAN, and for gold loans PAN is collected mainly under the KYC rules.
Is a PAN card mandatory for EMI?
No separate PAN is needed for each instalment. The PAN is collected once at KYC, and repayments are then linked to the loan account.
Who is exempted from PAN card?
A person without a PAN may give Form 97 for certain transactions instead. Those with only agricultural income are one example, though lenders decide what they accept.
Disclaimer: This blog shares information only and is not to be read as a loan offer. Loan terms rest on RBI rules, KYC, the valuation of the gold, the assessment of the borrower 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
