The State Bank of India (SBI) has established new rules for gold loans in 2025, following the update by the Reserve Bank of India (RBI), which are primarily directed towards the betterment of transparency, borrower protection, and responsible lending at the same time. These modifications are vital for millions of Indians who depend on gold loans as a source of fast money.
Key Changes in SBI Gold Loan Rules 2025
Starting October 1, 2025, the State Bank of India will be implementing the gold loan measures in conformity with the revised RBI guidelines regarding Lending Against Gold and Silver Collateral Directions. The following are the significant modifications made:
- Loan-to-Value (LTV) Ratio Limited to 75%: Now the borrowers are able to get a maximum of 75% of the market value of the gold, and this helps the bank to manage the risk better.
- No Loans for Gold Purchase: From now onwards, State Bank of India will not grant any loan for buying gold in any form—be it jewelry, coins, ETFs, or mutual funds.
- No Lending Against Raw Gold or Silver: You can’t take a loan by the collateral of primary gold or silver bullion, or financial products backed by them.
- Collateral Return Timeframe: The banks are required to give the pledged gold back in 7 working days after the borrower makes the complete repayment.
- Uniform Valuation: In order to avoid discrepancies, SBI will be following RBI’s mandate regarding uniform gold valuation and assaying procedures.
How It Affects Borrowers
The ushering in of these new changes in the SBI gold loan 2025 rule is envisaged to protect the borrower from over-leverage and promote fair valuation. Despite the LTV cap being a possible hindrance in the way of the loan amount one can avail of, it also works to the advantage of the borrower by curtailing the risks of both default and auction.
The prohibition on loans for the purpose of gold purchase takes away the possibility of buying gold on speculation and is in line with the RBI’s aim of reducing gold imports. The 7-day return policy is advantageous for rural and semi-urban borrowers since it ensures quicker access to their pledged assets post-payment.
Expert Insights
According to financial specialists, these modifications will help the gold loan industry become more orderly and transparent. “The standardized valuation and swift release of collateral are borrower-friendly moves,” opines Mayashree Acharya, a personal finance analyst.
Conclusion
Newly imposed rules of the SBI gold loan 2025 are a reflection of the widespread regulatory movement towards making gold-backed lending less risky and more transparent. Even though borrowers will have to face stricter norms, the long-term gains include better protection, fairer valuations, and faster service. It is very important for you to become familiar with these updates and make plans accordingly if you are thinking of applying for a gold loan.
