Gold Loan NBFC Software India — LTV Monitoring and Auction Compliance 2026

Gold Loan NBFC Software India — LTV Monitoring and Auction Compliance 2026

Gold loan NBFCs operate under one of the tightest RBI frameworks in the NBFC sector. The 75% LTV cap, mandatory gold appraisal, auction notice requirements, and CIMS reporting create a compliance burden that manual systems cannot handle reliably. A single LTV breach or missed auction notice can result in RBI action.

RBI Gold Loan Regulations

LTV (Loan to Value) Cap

RBI mandates that gold loan NBFCs cannot lend more than 75% of the gold's current market value. With gold prices fluctuating daily, a loan that was within LTV on disbursement day may breach the cap if gold prices fall.

Certified Appraisal

Gold must be appraised by a certified valuer at the time of pledging. The appraisal must be documented and linked to the loan.

Auction Notice Requirements

Before auctioning pledged gold, the NBFC must issue a notice to the borrower with the required notice period. Auction must be transparent — third-party auctioneer, competitive bidding, surplus returned to borrower.

CIMS Reporting

Gold loan portfolios must be reported in RBI CIMS format monthly.

MICS Gold Loan Software Features

Gold Appraisal and Pledging

• Appraiser module: purity assessment (karat), weight, hallmarking status
• Current gold rate integration (MCX / IBJA rate auto-fetch)
• Gold valuation computation: weight × purity factor × market rate
• LTV computation: loan amount vs. gold value
• LTV cap enforcement: system prevents sanction above 75%
• Pledge item register: item-wise description, weight, purity, photo
• Packet labelling: barcode for each pledged item for physical tracking

Loan Origination

• Digital KYC: Aadhaar OTP eKYC, PAN verification
• Loan application linked to pledged gold
• Interest rate configuration: flat, reducing, or bullet payment
• Loan tenure: 3, 6, 12 months with renewal option
• Disbursement: Razorpay UPI or bank transfer (no cash disbursement)

LTV Monitoring (Critical)

• Daily gold rate update: automatic MCX/IBJA feed
• Portfolio LTV recalculation every morning
• LTV breach alert: flag loans where current LTV exceeds 75%
• Escalation: branch manager and compliance team notified immediately
• Corrective action workflow: top-up gold or partial repayment to restore LTV

Collection and Renewal

• Interest collection: daily, weekly, monthly options
• Partial payment recording
• Loan renewal: extend tenure with fresh valuation
• Part release: release specific pledged items on partial repayment

Auction Module

• Overdue loan identification: flagged after grace period
• Auction notice generation: compliant with RBI-prescribed notice period
• Notice delivery tracking: registered post, in-person
• Auction date scheduling and auctioneer assignment
• Auction result recording: sale price, buyer details
• Surplus computation: sale proceeds minus outstanding loan minus auction charges
• Surplus payment to borrower with acknowledgement
• Deficit recording: if sale proceeds are insufficient

Branch and Vault Management

• Multi-branch support with branch-wise gold vault register
• Daily vault reconciliation: physical gold vs. system record
• Gold transfer between branches with dual authorisation
• Vault audit trail

CIMS Reporting

• Monthly CIMS submission in RBI-prescribed format
• Portfolio summary: outstanding loans, NPA classification, gold held
• Pre-submission validation

Pricing

| Branch Count | Monthly Cost |

|---|---|

| Single branch | Rs. 18,000 |

| 2-5 branches | Rs. 28,000 |

| 5+ branches | Rs. 40,000 |

Free gold loan software demo: +91 9355273535 | admin@mics.asia