What you need to know
Pledged gold is sealed in your presence and stored in strong rooms or vaults. Lenders are responsible for its safety and must compensate you for loss or damage.
Protections
- Sealed packet with your signature and item-wise record
- Storage in vaults with insurance cover arranged by the lender
- Compensation for loss or damage of collateral (RBI 2026 rules)
- Release within 7 working days of repayment, or ₹5,000 per day penalty
- Collateral unclaimed for 2 years after repayment is treated as unclaimed and tracked
Checklist
- Photograph your jewellery before pledging.
- Check the receipt for gross/net weight, purity and description.
- Verify the seal when taking the gold back.
Frequently asked questions
Who pays for insurance?
It is usually built into the lender’s costs; some NBFCs show a small insurance charge.
For information and comparison only. Loan terms, rates and rules change — confirm with the lender and read the Key Facts Statement before borrowing.