The poster says 85%. Your account will not agree.
Three deductions sit between the gold in your hand and the money in your account, and every one of them is written into the rule book rather than the fine print. Stones come off the weight. The valuation rate is not today's rate. And on a bullet loan the ceiling applies to what you will repay at the end, not to what you take at the start. Enter your jewellery below and watch the headline come apart.
What actually reaches your account
That is — of what your gold is worth at the latest closing rate — against a headline that says —. The difference is not a lender's margin. It is four separate provisions of the rule book stacking on top of one another.
Where it goes, line by line
Each step below is a separate requirement. None of them is negotiable at the counter, and none of them appears on the hoarding outside.
Which ceiling you land under
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How far gold can fall before they call you
The ratio is not tested once at sanction. It has to hold every day the loan is alive, and the price it is tested against is the market's, not yours. Take the maximum and there is no cushion left at all.
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Four things the counter does not mention
The idea that a gold loan skips the income check holds only below that line. Past it, the lender is required to assess your repayment capacity properly — and on a bullet loan the threshold is tested on the maturity figure, not the disbursal, so a loan that looks like it sits under the line often does not.
Principal and interest both fall due at the end, and the tenor cannot run past a year. It can be renewed, but only after the accrued interest is cleared and only if the ratio still holds — which, with interest having piled on for a year, is exactly when it usually does not.
Across all your loans with one lender: one kilogram of gold ornaments, fifty grams of gold coins, ten kilograms of silver ornaments, five hundred grams of silver coins. Bars and bullion are not acceptable collateral at all, and no lender may fund the purchase of gold in any form.
Once you repay, the jewellery comes back the same day where possible and within seven working days at the outside. Beyond that, where the delay is the lender's doing, they owe you five thousand rupees for every day. Ask for the assay certificate at the pledge counter too — you are entitled to a copy, and it is the only record of what was weighed and what was deducted.