NRI Gold Loan in India: Eligibility, Process & Top Lenders

Oct, 8 2025

Many Indians living abroad wonder if they can tap their gold jewellery for a quick loan back home. The short answer is yes - NRIs can secure a NRI gold loan in India, but the rules differ from resident borrowers. This guide breaks down who can apply, what paperwork is needed, which banks are friendliest to NRIs, and how the whole process works from start to finish.

Key Takeaways

• NRIs are eligible for gold loans from most major banks and NBFCs, provided they meet RBI’s KYC norms.
• Typical loan‑to‑value (LTV) ranges from 60% to 75% of the gold’s market value.
• Essential documents include a valid passport, overseas address proof, PAN card, and proof of NRI status (e.g., OCI card or NRE/NRO bank statements).
• State Bank of India, HDFC Bank, and Muthoot Finance are among the most NRI‑friendly lenders.
• Repayment can be done through a NRE/NRO account, foreign credit card, or online transfer, often with flexible pre‑payment options.

Understanding a Gold Loan

Gold loan is a secured loan where the borrower pledges physical gold as collateral. Lenders assess the gold’s purity and current market price, then advance a percentage of that value as cash. Because the risk is low, interest rates are usually lower than unsecured personal loans.

RBI Guidelines for NRIs

The Reserve Bank of India (RBI) oversees all banking activities, including gold loans. In its Master Direction on Gold Loans, the RBI mandates that banks must verify the borrower’s identity, source of funds, and compliance with anti‑money‑laundering (AML) regulations. For NRIs, the RBI allows the use of overseas address proof and foreign‑issued identification, but the lender must still obtain an Indian PAN card and ensure the gold is physically stored in India.

Eligibility Criteria for NRIs

While each institution sets its own rules, the core eligibility factors are consistent:

1. Residency status: The applicant must be an NRI, OCI, or PIO as defined by the Ministry of External Affairs.
2. Age: Typically between 21 and 65 years at the time of loan closure.
3. Creditworthiness: No major defaults on existing Indian credit facilities; many lenders run a basic credit check using the CIBIL score linked to the applicant’s NRE/NRO account.
4. Gold ownership: The gold must be physically present in India, either stored at the lender’s vault or a trusted custodian.
5. Documentation: Valid passport, visa/overseas work permit, PAN card, and proof of NRI status.

Required Documents

Gather these papers before you approach a lender to avoid delays:

• Passport (original and copy)
• Valid Indian PAN card
• Overseas address proof (utility bill, bank statement, or rental agreement)
• Proof of NRI status - OCI card, NRE/NRO bank statement, or a certificate from the Indian embassy
• Gold appraisal report - most banks arrange this in‑house; bring a recent jewellery purchase receipt if you have one
• Declaration of source of funds, especially for amounts above INR 5 lakh, to satisfy RBI AML norms

Top Lenders Offering NRI Gold Loans

Below is a snapshot of three leading institutions that explicitly cater to NRIs. All three follow RBI’s guidelines and have a track record with overseas borrowers.

Step‑by‑Step Application Process

1. Pre‑check eligibility: Verify your age, NRI status, and that your gold is already in India.
2. Choose a lender: Use the comparison table above to shortlist based on LTV and interest rates.
3. Gather documents: Scan or photocopy all required papers. Most banks accept digital uploads via their portal.
4. Submit application: Fill the online gold loan form or visit the nearest branch (some banks have NRI service centres at major Indian airports).
5. Gold valuation: A certified appraiser will assess purity and weight. The lender will then quote the loan amount.
6. Loan agreement: Review the terms, especially pre‑payment penalties and foreclosure charges. Sign electronically or in person.
7. Disbursement: Funds are transferred to your NRE/NRO account, or directly to your Indian bank account if you prefer.
8. Repayment: Set up auto‑debit from your NRE/NRO account, or use online UPI/NEFT. Early repayment is usually encouraged and often fee‑free.

Common Pitfalls & Pro Tips

Pitfall 1 - Ignoring RBI’s AML checks: Large loan amounts trigger source‑of‑fund verification. Keep recent bank statements handy to prove legitimate earnings.

Pitfall 2 - Over‑valuing gold: Some lenders may offer a lower LTV if they suspect the gold’s market price fluctuates. Get a third‑party appraisal if you think the bank’s estimate is low.

Pro tip - Use NRE/NRO accounts: Disbursement directly into an NRE account avoids conversion hassles when you need the money abroad.

Pro tip - Leverage relationship managers: NRIs often get a dedicated manager who can fast‑track documentation and offer better rates.