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.

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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.

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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

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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