Legal notice

MAHAVIRA FINLEASE LIMITED  GOLD & SILVER LOAN LENDING POLICY

1. Objective

The objective of this Gold & Silver Loan Lending Policy is to establish transparent, prudent, and standardized norms for sanctioning loans against pledge of gold & silver jewellery while ensuring compliance with applicable RBI guidelines, internal risk management standards, and fair lending practices.

2. Scope

This policy shall apply to all gold loans sanctioned by the Company through its branches, digital platforms, agents, marketing channels, call centres, and other customer acquisition sources.

3. Eligible Security

The Company shall grant loans against:

  • Gold jewellery from 14 carat to 22 carat purity & silver jewellery.
  • Hallmarked and non-hallmarked gold & silver jewellery
  • Accepted ornaments as per internal valuation standards

The following shall generally not be accepted:

  • Gold coins
  • Bullion
  • Artificial jewellery
  • Gold-plated ornaments
  • Jewellery with excessive stones or non-gold content

4. Customer Eligibility

Gold loans may be granted to:

  • Indian citizens
  • Individuals above 18 years of age
  • Customers complying with KYC norms prescribed by RBI and applicable law

The Company reserves the right to reject any application based on risk assessment, documentation deficiency, or policy non-compliance.

5. KYC & Documentation

Mandatory documents include:

  • Aadhaar Card
  • PAN Card (where applicable)
  • Address Proof
  • Photograph
  • Any additional document required under regulatory norms

The Company shall conduct KYC verification in accordance with RBI guidelines and AML regulations.


6. Gold & Silver Valuation Process

6.1 Physical Verification

All pledged jewellery shall be physically verified by authorized personnel using approved testing methods and valuation procedures.

Assessment shall include:

  • Purity verification
  • Net weight determination
  • Stone deduction, if applicable
  • Market gold rate & market silver rate evaluation

6.2 Indicative Loan Communication

Any loan amount communicated through:

  • Website, Mobile application, Telecalling, Advertisements, Digital campaigns & Third-party sources

shall be treated only as an:

“Indicative eligible loan amount”

Such indicative amount shall remain subject to:

  • Physical verification
  • Purity assessment
  • Weight confirmation
  • Customer KYC verification
  • Company policy norms

6.3 Internal Safety Margin / Buffer Deduction

The Company may apply an internal safety margin or valuation buffer on assessed gold value for prudent risk management and protection against market volatility.

Such adjusted value may be treated as:

  • Eligible collateral value
  • Drawing value
  • Risk-adjusted gold & silver value

The percentage of such deduction may be revised by management from time to time.

7. Loan-to-Value (LTV)

Loan sanction shall be based on:

  • Eligible collateral value
  • Applicable RBI regulations
  • Internal credit norms

The Company may sanction loans up to the permissible LTV ratio prescribed under prevailing RBI guidelines.

Final sanction amount shall be determined after:

  • Valuation
  • Buffer deduction (if applicable)
  • LTV application

8. Interest Rate

Interest rates shall be determined by management from time to time based on:

  • Market conditions
  • Cost of funds
  • Risk profile
  • Product category

Interest rates and charges shall be transparently disclosed to customers prior to disbursement.

9. Loan Tenure

Loan tenure may vary depending on product type and company policy.

The Company may provide:

  • Bullet repayment loans
  • EMI-based loans and Non EMI Interest servicing schemes

10. Disbursement

Loan disbursement may be made through:

  • Bank transfer. IMPS/NEFT/RTGS
  • Account payee cheque
  • Cash, subject to applicable legal limits

Disbursement shall occur only after:

  • Completion of documentation
  • Pledge creation
  • Execution of loan agreement
  • KYC compliance

11. Custody & Security of Gold

Pledged jewellery shall be:

  • Packed securely
  • Tagged with customer identification
  • Stored in secured vaults
  • Protected through insurance coverage as per company norms

Access to pledged ornaments shall remain restricted to authorized personnel only.

12. Auction & Recovery

In case of default:

  • The Company may issue reminders/notices to the borrower
  • Opportunity shall be provided for repayment or renewal
  • Upon continued default, pledged gold may be auctioned in accordance with applicable law and RBI guidelines

Any surplus after adjustment of dues and charges shall be refunded to the borrower.

13. Fair Practices

The Company shall:

  • Maintain transparency in valuation and charges
  • Communicate terms clearly
  • Avoid unfair recovery practices
  • Ensure customer confidentiality
  • Provide grievance redressal mechanism

14. Customer Communication Disclaimer

The following disclaimer may be used on websites, advertisements, and telecalling scripts:

“Loan eligibility communicated through digital or telephonic channels is indicative only and subject to physical verification of jewellery, purity, weight, documentation, market conditions, and company policy.”

15. Policy Review

This policy may be reviewed and amended periodically by the management/directors of the Company based on:

  • RBI guidelines
  • Business requirements
  • Market conditions
  • Risk assessment framework


16. Approval Authority

This policy is approved and adopted by the management of:

Mahavira Finlease Limited

Effective Date: 24/ 05/ 2026
Version: 1.0
Approved By: DEEPANSHU TYAGI
Designation: CEO ( GOLD & SILVER LOAN)