Is Your Pledged Gold Really Safe? Here’s How It’s Stored
By SonaFin Editorial Team · · 6 min read
In short: Banks and RBI-regulated NBFCs keep pledged gold in secured strongrooms or vaults, usually insured, and return the same items once you repay in full. Ask for a receipt listing your items and their purity.
How lenders store pledged gold
Pledged ornaments are packed and sealed, recorded against your loan account and kept in a strongroom or vault. Regulated lenders follow storage and security standards, and many insure the gold they hold.
What paperwork protects you
You should receive a loan agreement and a receipt listing each item, its weight and its purity. Keep both safe. They are your proof of what was pledged and what you are owed on repayment.
Choosing a safe lender
Use banks and NBFCs that are regulated by the RBI. Check that the branch has a secure vault, ask about insurance, and avoid informal lenders who cannot show valid registration. SonaFin lists only RBI-regulated lenders.
Compare gold loans before you decide
See rates, per gram rates and fees from RBI-regulated lenders side by side. Free, with no sign-up.
Compare gold loans